ACCORDING to a new report, investors are expressing trust in Lagos State’s economy.
This was revealed at the launch of the Office of Sustainable Development Goals and Investment in Lagos’ study on the business and investment environment, titled ‘Barometer of Investment Climate in Lagos State’.
The report said, “There is high optimism on Lagos economy by businesses and investors.
“Firms are also keen to increase the level of investment in the state as indicated by the overwhelming ‘yes’ responses, of more than 70 per cent across different business categories.
“However, economic instability occasioned by poor exchange rate management as well as inflationary trend could undermine actualisation of the investment potentials.”
The Special Adviser to the Governor on Sustainable Development Goals and Investment, Solape Hammond, said the investment barometer “is a report that tells us how people are feeling in Lagos, what their sentiments are on specific activities and there are specific recommendations.”
The initiative was designed, according to the OSDG&I, to elicit private sector perspectives on the business environment.
According to the survey, security in Lagos State is reasonably safe when compared to other states and Nigeria in general.
Uncontrolled migration and flood of foreigners into Lagos, as well as the threat of unregistered actors, undocumented motorcyclists, and hawkers, were all identified as potential security threats.
It was highlighted that the prevalence of commodity hawking was having an impact on core retail trade.
According to the report, the state’s healthcare system has improved significantly in terms of access to public health facilities and cost.
Adding that the cost of living is caused by an increase in the overall price level of goods, which reduces disposable income and weakens aggregate demand.
The report said, “Business environment in Lagos State a highly regulated one with implications on business performance in terms of efficiency and financial implications. Regulatory challenges are so pervasive that even in the same ministry or agency, you see different departments carry out inspections on private companies.”
