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The following article was published in our article directory on October 8, 2015.
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Overview of Lagos State's disposition to private sector

Article Category: Business

Author Name: Jude Chukwuemeka


Governor Akinwumi Ambode promised to create a lot of job opportunities for people of Lagos state as soon as he takes on the mantle of leadership. Not much can be done unless the private sector is encouraged to support economic and sustainable development. There is an urgent call for diversification of the economy, while opportunities that lay low now can be revived by means of foreign investment opportunities. Very paramount to the success of small businesses in Lagos State, is the provision of an enabling environment in which all stakeholders and other players will have equal opportunities to grow their business strategies.

The office of the public private partnership in the past has achieved a lot, it is still important to identify the right type of foreign investments needs in Nigeria. This will help Lagos to export products and services to other parts of the country and also to other countries.

Lagos state government is interested in creating more opportunities in the following sectors; transportation, housing, etc. But the state has also acknowledged the support of GEMS in realizing many of the business growth that has occurred in the state.
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Presentation: Director General Lagos Chamber of Commerce & Industry

He is very much interested in the private sector, very much interested in businesses at high and low levels. He spoke about Lagos State's private sector perspectives to proffer solutions to many of these issues.

He started by appreciating what GEMS has been able to do by creating dialogue initiatives between government and the private sector. Also he praised GEMS for improving issues having to do with taxation in the state.

The issue of business environment or climate in Lagos is such that government alone cannot fix. It's a big challenge not only for Lagos State, but something that governments and businesses experience all over the world. That's how it should be in a circumstance where issues having to do with business cuts across the various government realms, units, and parastatals.

Lagos state has various business issues. Some are macro-economic issues, others are infrastructure issues, policy issues, and the limitations in fixing these issues.
Notably, some of these issues cannot be fixed at state levels. They may have to be referred to the federal level.

Macro-economic Issues: This makes it impossible for small business to access funds from foreign exchange markets. This makes it almost impossible for importers to do business. When it's impossible for a business person to utilize his domiciliary account, it makes it hard for him to do business.

The Lagos Chamber of Commerce has tried various means of engagement to improve the situation, both at government and business levels, yet nothing has changed.
High cost of interest rates still remains a big problem. Monetary and trade policies are other areas in which improvement has to be made. For the manufacturer, external tariffs create a lot of issues which need to be looked into. Tax policy has often been looked into both by GEMS and the Lagos State government but it is still an issue which needs attention because the rates are still varied, so that taxpayers are ignorant of how much they're supposed to pay annually. But more than that, there still exists the issue of multiple taxation problems.

The automotive policy is also important because Nigerians are buying cars expensively because the policy has not solidly taken off. Rate of increase is 35 percent and 70 percent. This also affects those selling cars in Nigeria negatively as buyers often resort to smugglers, in order to purchase cheaper cars.

Another issue is that of getting land titles. Many businesses find it difficult to get the C of O. Land is important as means of collateral, thereby suggesting that some businesses may not be able to access loans if there are not able to get the C of O. If one has land as an asset but does not have the C of O it is as good as not having anything.

Import and export issues or challenges has led to many businesses relocating to countries outside Nigeria and Nigeria has lost a lot of jobs to Cotonou because various irregularities.

Cutting corners is one area where a lot of businesses in Lagos fall short. Sometimes competitors either pay lesser duty charges or pay nothing at all because of sharp practices.

The transportation industry also suffer its own in areas of having too much regulations that workers find it hard to comply with these. The state government can simply policies and regulations for road transport workers so that they too can operate in an enabling environment. For example, there is the Lagos driving license and the national driving license and so many other documents required by the government. These are just too many burdens for drivers in the state to face. Add to this, the harassment faced by Lagos State auto drivers!

Attached to these are various other inconsistencies in policies which have dire consequences for businesses in Nigeria.

It is very necessary to have a very effective mechanism so that these issues can be solved once and for all. It is also important that government lay down laws regarding the present inconsistencies, laying down laws that every business entity must observe.

About the Author: Check out how you can boost your blog rankings online here. If you're looking for more resources on online business, CLICK HERE. He also talks about laptops here.

Keywords: business nigeria,

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