SDG: Over 70% businesses retain interest of operating in Lagos, set for increase in investment – Study
By Moses Adeniyi
…decry activities of non-state actors, Port glitches by contending FG’s agencies
…National, continental-wide arrangements necessary to combat global hegemony – Construction expert, Ladega
…More provisions available for businesses in Lagos than majority know – Sanwo-Olu’s SA, Hammond
Over 70percent businesses operating in Lagos have thrown their weight of interest to continue running operations in Lagos, expressing willingness to expand their investment scope – a study on the Barometer of Investment Climate in Lagos has shown.
According to the study anchored by the Lagos State Office of Sustainable Development Goals (SDG) and Investment, engaging a non-state consultant, for an unbiased engagement with stakeholders in Lagos, business operators in the State expressed their willingness and hope of returns should they retain and expand investments in the State, while calling on the government to improve on the prevailing standards.
The report on Barometer of Investment Climate in Lagos revealed that while the business sampled in the survey reckoned with the business environment in Lagos to be averagely fair for operations, they believe the State Government has more to do to attract more investors.
Areas where the operators raised concern, demanding the improvements from the State Government include, addressing taxation processes and policies; simplifying laws and regulations; and considering the formation of a specialised Agency for Micro, Small, and Medium – Scale Enterprises (MSMEs).
Others are, addressing land grabbers’ excesses; improving on engagement for service and policy making; more incentives; quality workforce through training skills; harmonising operation of regulating agencies.
Also were, developing one-stop-shop processes for permits and licences; leveraging innovative Public-Private Partnership (PPP) arrangements; sanitising transportation; monitoring and evaluation of business regulating Agencies, among others.
The rationale behind the survey was borne by necessity of gathering intelligence for developing an articulated laid-out structure to enhance the business environment in the State, according to the World Bank standards of ease of doing business.
On the methodology, the primary source of data were sourced from questionnaires and focus-based discussion from which responses from businesses were elicited.
The study which was structured on 10 major pillars of concern – including Finance and Funding, Tax policy, Regulation, Cost of Living, Quality of Healthcare, Quality of Human Capital, Government Services, Investment Promotion, among others, had a mixed sources of businesses according to sizes and status, accommodating indigenous and foreign businesses, as well as small, medium and large-scale businesses.
The survey which adopted a quantitative and qualitive approach had in total a number of 500 businesses sampled, of which 419 coordinated responses were collated in the survey over a period of about eight months.
Of the 419 businesses across sectors, sampled in the survey, were 255 indigenous, 79 foreign and 80 companies of mixed indigenous and foreign investors.
On size, 215 small businesses, 114 medium, and 70 large-scale businesses were sampled with analysis of the responses from the categories, while working closely with the organised private sectors, including such professional bodies and players as the Lagos Chambers of Commerce and Industry, the Manufacturers Association of Nigeria, the Nigerian Maritime Administration and Safety Agency, the Nigerian Association of Chamber of Commerce Industry, Mines And Agriculture, the Nigerian Association of Small Scale Industrialists, among others.
It was argued that the study met the standard of the national survey of developed Countries, many of which fall under the sample size of below 500.
In her view on the parameters, the Special Adviser to the Lagos State Governor on Sustainable Development Goals (SDGs) and Investment, Mrs. Solape Hammond, said: “When you compare, when Mexico did their own national survey, they sampled 200 companies. There are several other countries that have done 500, but we did 419 in Lagos, so we could be sure we got elaborate response.
“For us, we looked at this report, which is fantastic, based on the things which are tangible, laudable, and therefore can be taken across every area that is represented therein.
“The biggest part of this report was, there are areas we are doing quite fine, and there are areas for improvement: But the most important thing was, for me, the sentiment of the people who are working and doing business in Lagos.
“Overall, we had a resounding level of retained interest in Lagos. More than 70percent of the businesses – 64percent of foreign companies, 74percent of local companies and small businesses – said they would not only continue to like to do business in Lagos, but also want to even increase their investments.
“I think that is really a good endorsement of the State and the environment that we have created. We would take on board the recommendations, so that we can create a more beautiful place and reach our target of Lagos being the most attractive investment destination across the world.
“Lagos has always taken ease of doing business seriously. As the economic, commercial, financial and industrial hub of, not just Nigeria, but West Africa, it’s important that we keep our businesses intact, and so it’s something that has been very close to our heart as a government,” Hammond said.
Hammond said the need for business stakeholders in the State to align with government interventions was sacrosanct.
According to her, various channels of engagement and opportunities available for businesses are not being optimised by them.
On harmonisation of policies by collaborating with the private sector, she assured the Government is poised at strengthening engagement with the private sector, maintaining that many operators are still unaware of conversation programmes set up by the Government.
According to her, communication, participation, and continuous lobbying were essential for businesses to maintain relevance in the business environment to optimise the various opportunities made available by the State Government.
She lamented that inadequate understanding of the policy environment on the part of businesses have kept many businesses in the dark, losing opportunities.
“At the end of the day every thing is not just the Government’s responsibility. Indeed, there are many of the recommendations made that actually exist. For example, a one-stop-shop, but the office of the SDG and Investment already is in the Lagos State One-Stop-Shop.
“Part of the challenges we have is communication. The government would continue to reach out but we encourage our businesses to follow us, listen to us, speak to us and communicate with us.
“We have information on our websites. The stakeholders should engage with us; ask questions about things you don’t know; tell us about things you don’t like; call us out if we are not doing well; so that we can do better.
“Secondly is participation, and I love the fact that some of the chambers were committed to being part of the process and helping to improve. Let us work together to create the future that we want.
“If you don’t understand the policy environment, it is very easy to say this isn’t there. Many people are actually surprised when they find out that there are laws in Lagos on many things that are not known.
“Improving the business environment is the approach of the Government. They have to continue to engage wirh us, have faith in the Government, trust that we mean well for you, and at the end of the day we have a good condition for the business environment. We are all citizens, we all drive on same roads and suffer same challenges, and so it’s in the interest of all that we are working,” the Special Adviser said.
Hammond disclosed that on skilling for human capital, the State Government empowers no less than 100,000 persons yearly through various capacity building based intervention.
According to her, other measures bordering on diversifying manufacturing processes, capacity building schemes, strategic policy implementation and innovative PPP framework are efforts the Government have been concerting for a better environment.
She called on businesses to invest in the progress of the State, while taking advantage of the improvements on the business environment.
On infrastructures, while operators expressed concern demanding for more construction around industrial areas, representatives of State authorities maintained that projections on the profile of infrastructures would wear a better look of improvements owing to on-going State-wide constructions and projects.
Concerns & responses
According to the report, respondents were recorded to have scored the State high on the quality of health services, just as they raised concerns over high cost of living and quality of life, security, electricity, water supply, access to grants, activities of non-state actors such as market boys, area boys, among others.
This is just as stakeholders raised concern over conflictling interests among over 14 agencies of the Federal Government clogging up Ports with supremacy battles, lamenting that their compromise of operations have made export more tedious than import.
However, representatives of State authorities including key State Executive Council members, cleared grey areas, declaring the readiness and openness of the Government to address the issues of concern.
Speaking from political economy point of view, construction expert, Architect Segun Ladega asserted that with the prevailing order of the global political economy, which according to him is non favourable to developing economies, lofty achievements, as expected, would be a facade unless they are channeled through broader frameworks of national and continental coordinated interests.
Ladega who submitted that growth can be achievable by reengaging the global economy, argued that economic success would not only be objective but also political, calling on the Nigerian government to negotiate the nation’s pathway in the hegemonic western dominated political economy.
He called for political relevance of operators to assert weight of influence by participating actively in the political space to deflate the influence of the street non-state actors on the political class.
In his remarks, the Lagos State Commissioner for Science and Technology, Mr. Hakeem Fahm, said there was need to bridge the gap between the Government and the operators, saying such two way assessment of the Barometer study was essential.
He stressed that the 6,000km fibre optics of the State Government, among other technological driven arrangements to every part of the State for security were on-going to vitalise business environment.
The Special Adviser to Governor Sanwo-Olu on Innovation and Technology, Mr. Tubosun Alake, said the ideology informing additional provision of infrastructures in the ICT sector, was to derisk ICT market for players in the sector to come in with advantage to enhance their operations.
He called on businesses to become politically relevant by engaging with lawmakers for ideas and revisions on bodies of relevant laws.
Commissioner for Agriculture, Ms. Abisola Olusanya said it was high time citizens begun engagement to hold grassroots government accountable.
This, she said, was to address the plethora of grievances on local communities issues which are under the local governments to address, but which the State Government is being blamed for.
Lamenting the impacts of undocumented migrants coming into the State in their numbers, she said deficits in other states impose burden on Lagos, which she said, would only be addressed if other States wake up to develop their individual economies to make their domain attractive, against massive migration.
Lamenting that various agricultural schemes put in place by the Government have been challenged by unencouraging reports of infidelity and unfaithfulness of participants, many of which are predisposed to diversion of empowerment tools and funds, she said the State has now opted for cluster arrangements for the beneficiaries to set up coordinated production across the value chains in the sector.
