Lagos State Government will be delivering a new hub of commerce at Cappa in Oshodi area to provide subsidised workspaces for Micro, Small and Medium Enterprises (MSMEs) operating in the State.
Governor Babajide Sanwo-Olu, on Thursday, disclosed that the construction of the Cappa hub would be completed in the first quarter of next year and will accommodate thousands of MSMEs operating without workstations.
The intervention, the Governor said, becomes necessary to strengthen thriving small-scale businesses and draw down their expenses.
Sanwo-Olu announced the development at the 7th Lagos Corporate Assembly held at the State House in Alausa where the Governor met with members of the Organised Private Sector to chart a new course for the growth of the State’s economy.
Their conversation was centred around reviewing the impact of Coronavirus (COVID-19) pandemic on businesses and resolutions implemented to further improve Ease of Doing Business, thereby making the State’s economy resilient.
The yearly event is a platform on which the State Government and members of the private sector jointly address regulatory issues hampering smooth running of business activities in Lagos.
Sanwo-Olu, who described MSMEs as “the engine room” of growth, said the State’s economy had continued to climb up because of the resilience of small and medium businesses. The Governor said it was time the Government leveraged the growth opportunities offered by the MSMEs to generate more jobs and revenue by expanding the workspace for operators to co-create and sustain their investments.
He said: “The disruption occasioned by COVID-19 pandemic has further exposed the need to build a more stable and resilient economy through the implementation of sustainable economic policies and proactive initiatives that guarantee a safe business environment. Small and medium enterprises have played significant roles in our economic growth and we will continue to give them the necessary support so that they can thrive and contribute their quota to the development of Lagos.
“We acknowledge that the MSME hub we have in Ikeja has been working fine; but it is oversubscribed and we are looking beyond that. We are currently building another hub in Cappa around Oshodi and I assure all micro, small and medium business operators that the new hub will be commissioned in the first quarter of next year. We are also looking for space in Somolu, Yaba and Obalende where we will replicate the kind of hub we have in Ikeja.”
Aside expanding the workstation for micro, small and medium-sized businesses, the Governor said there would be intervention in the areas of off-grid power, business mentoring, FinTech assistance and fast Internet connectivity. The intervention, he said, will stimulate more growth and generate young employment for the youth.
Sanwo-Olu told members of the business community that his administration had resolved all issues raised during last year’s edition, sharing some of the progress with the investors.
He said the State Government had implemented the Harmonised Inspection Workplaces Policy suggested at the Assembly last year, which grouped together the complementary regulatory activities of Ministries, Agencies and Departments (MDAs) at business premises.
He said: “You raised the issue of incentives and palliatives to cushion the effects of the COVID-19 Pandemic on your businesses. We responded by granting businesses a 25 per cent discount on early payment of Land Use Charge, and offered waiver on three-year penalty covering Years 2017, 2018 and 2019 on Land Use Charge default.
“We have also addressed your concerns about the activities of the Vehicle Inspection Service (VIS) officers and their approach to traffic law enforcement by adopting Automatic Number Plate Recognition Cameras while we have stepped up our enlightenment campaigns on road safety and traffic laws.
“One of our most significant achievements of the sixth edition of the Lagos Corporate Assembly is our investment of N1bn seed money in the tourism sector to mitigate the impact of the pandemic on the tourism and hospitality businesses.”
The Governor pledged to address new resolutions raised by members of the organised private sector and promised that there would be improvement before their next meeting.
