Business Environment: Our resolve to boost FDI not a lip service — Sanwo-Olu
… as stakeholders commend gov, demands for more
By Moses Adeniyi
Lagos State Governor, Mr. Babajide Sanwo-Olu, has said that the State is not relenting in any way towards the drive of enhancing friendly business environment to attract Foreign Direct Investment (FDI).
Governor Sanwo-Olu who gave the affirmation on Thursday at the 7th Edition of the Lagos Corporate Assembly tagged ‘BOS MEETS BUSINESS’, held at the State House, Ikeja, said the declaration of commitment to attracting foreign investment into the State by implementing business friendly public policies is not “a lip service”.
“We will not stop at anything to ensure that our Lagos remains safe for businesses and create an ecosystem where indeed foreign direct investment will not just be a lip service but something we will truly really be proud of, to build our greater Lagos,” he said.
Responding to fears raised by stakeholders on security challenges against businesses, Governor Sanwo-Olu said the State Government is abreast of the situation and is taking all actions to guide against any unfortunate possibility.
“One of the primary responsibility of government is the security of lives and properties. I want to assure our businesses that this is one area that we are not shelving from.
“We are doing everything to make Lagos safe and secure and to make sure that businesses and properties are safe. Working with security agencies, we know what the issues are, and what the problems are,” he said.
Briefing on the policy actions the Government has taken on demands and recommendations presented by stakeholders at the last edition of the Assembly, he said the Government made efforts to touch on virtually all the points of note, mentioning that many of them were undergoing implementation processes.
Some of the implementations he mentioned include the State Government’s repeal of the 2018 law on Land Use Charge which granted concessions and incentives on applicable charges; waiver of three years penalty on land use defaulters, the refund of the five per cent initial loan deposit by Micro Small and Medium Enterprises (MSMEs) to all customers who completed their loan repayment with the Lagos State Employment Trust Fund (LSETF).
Others are the ongoing installation of optic fibre across the State to assist businesses whose operations depend on efficient and affordable internet services and the waivers as requested by the Organised Private Sector on charges relating to water abstraction (borehole and drilling) and permit:
Also were the cutting of charges/rates by 75% on water licensing/permit; giving five years waiver of arrears on water licensing and permit amongst others; attending to request for a robust relationship with Lagos State Infrastructure Asset Management Agency (LASIAMA); concerns on Vehicle Inspectoion Service (VIS) and traffic management, among others.
On security and traffic management, he mentioned that the installation of recognition cameras have commenced across the metropolis, while the State Government has strengthened enlightenment campaign on traffic laws and enforcement.
On empowerment of MSMEs, he said no less than 12,000 artisans were trained, 12,000 businesses empowerd through grants; support given to about 2,500 low capacity private schools; as well as partnership with three banks which has seen securing a N10billion fund to boost small businesses within the period under review.
On debt management, he mentioned that the Government is putting all measures in place to ensure the ratio falls within reasonable standards.
Stakeholders’ views
Meanwhile, stakeholders who commended the Governor’s effort on boosting friendly environment for business in th State, called the Government’s attention to gaps where policy actions are needed to keeping business running.
In her submission, the President, Lagos Chamber of Commerce and Industry (LCCI), Toki Mabogunje, said the private sector has a central role in the actualisation of the vision of a mega city and making Lagos a 21st century economy.
She mentioned that the State as the economic nerve centre of the Country has been living up to the demands to build resilience against shocks of the COVID-19 virus.
On her recommendations, she submitted that the State Government needed to establish more programmes to enable business to thrive under reasonable tax provisions.
Mabogunje who lamented the debt stock of Nigeria, noted that the larger chunk of revenue of the Country, now suffer for debt servicing, submitting that efforts be made towards replacing existing debt stocks with access links to ease debts burden.
Other submissions she made, include; identifying public assets, their locations and purposes; determining the worth of the assets; creating critical online digital platforms; leveraging on public policy advocacy; exploring Public Private Partnership (PPP) for infrastructure development; and developing friendly and supportive regulatory environment.
Mentioning that public policy direction is paramount for attraction of local and foreign investment, she submitted that it is essential for the Government to ensure implementation of policies that would “stimulate job creation, reduce poverty, create wealth, attract investment, and boost investors’ confidence.”
She however called for intervention on the tourism sector, following the strains of the COVID-19 pandemic which according to her, impacted a huge blow on the sector.
In his submission, the Vice President, Manufacturing Association of Nigeria (MAN), Chief John Aluya, who commended the government for improvement on the business environment in the State, called on the government to eliminate double taxation, as well as improve on special road intervention projects to attract investors.
LaudIng enlargement in the operations of the State in waste management, he called for a review of the charges by the Lagos State Waste Management Authority (LAWMA), while he lamented an increase of about 200 percent, which according to him, is non-corresponding to increase in waste volume.
Other points of call made on the government at the forum include turning attention to inclusion of cooperatives in the schemes of policy implementation, and reduction in electricity bill which stakeholders lamented has led to the closure of increasing number of MSMEs.
In response, Governor Sanwo-Olu assured that attention will be turned to the issues raised through appropriate policy actions.
In her remarks, the State’s Commissioner for Commerce, Industry and Cooperatives, Dr. Mrs. Lola Akande, said “the Assembly has become an advocacy platform where the State Government and the business community converge to discuss issues of shared concerns, with a view to promoting Commerce and Industry in Lagos State.”
According to her, the engagement has been able to reinvent and strengthen the relationship between the State Government and the organised private sector (OPS).
She mentioned that at the time, when the Covid-19 Pandemic is ravaging the world, discussions on the establishment of a new type of strategic partnership, more dialogue and exchanges between Government and the Organized Private Sector will revitalise businesses in the state.
She mentioned that the Babajide Sanwo-Olu led administration recognises that creating an enabling environment is the key to the overall economic development of the State.
“This is why the institution of a business-friendly environment that would attract more Foreign Direct Investment (FDI) into the State has been the central focus of the T.H.E.M.E.S agenda of this administration,” she said.
She added that with the advent of the Africa Continental Free Trade Area (AFCFTA), Lagos is positioned to engage commercially with other African Nations to boost export and create jobs in the State.
In his presentation, the Chief Executive Officer, Lekki Worldwide Investment Limited, Dr. Tunde Shodade, said the business orientation of the Lekki Free Trade Zone has been centralised for opportunities for the oil and gas industry.
According to him, the infrastructure development strategies applied for the zone is one of PPP, adding that the zone is being developed to be a modern city as “a city within a city”,
He mentioned that the State Government believed the existence of a free trade zone is critical to open up the economy for development through external access for export opportunities.
In her presentation, the Special Adviser to Governor Sanwo-Olu on Sustainable Development Goals (SDGs) and Investments, Solape Hammond, said investment in infrastructure is critical to developing key sectors such as energy, water and transportation as economic drivers with potentials to boost annual revenue generation for the State.
Hammond said the State is leveraging on technology and financial measures as well as transportation to boost friendly environment for business to thrive, particularly for MSMEs.
Mentioning that the role of the Government was to provide solid financing to boost friendly business environment, she highlighted that over 50,000 persons have been trained within a year on skill acquisition, and wealth creation programmes in the State.
She mentioned that special interventions, such as the State’s young graduates internship scheme, agricultural schemes to empower stakeholders, among other LSETF’s schemes, were proof of the State’s commitment to developing robust economy.
She disclosed that from about 109 recommendations submitted over the years at the Assembly, over 90 per cent have been implemented, showing the will of the present Administration to develop the business environment in the State.
