Located in the Oshodi area, the Cappa Hub will be a new centre for commerce where micro, small, and medium enterprises (MSMEs) in Lagos State will have access to subsidised workspaces.
Gov. Babajide Sanwo-Olu said in a statement on Thursday that construction of the Cappa hub is expected to be completed in the first quarter of next year, allowing thousands of MSMEs operating without workstations to access business services.
PHOTO: Governor Babajide Sanwo-Olu of Lagos addressing business community at 7th Lagos Corporate Assembly held at the State House in Alausa
The intervention, he said, is necessary to strengthen small, thriving businesses and reduce their costs.
He announced at the 7th Lagos Corporate Assembly held at the State House of Alausa, where he met with members of the organised private sector to chart a new course for growth in the State’s economy.
They discussed the impact of the coronavirus (COVID-19) pandemic on businesses and resolutions implemented to improve further the ease of doing business and make the state’s economy resilient.
This yearly event affords the government and employers in Lagos the opportunity to jointly address concerns about regulations impeding the smooth and efficient operation of businesses.
Sanwo-Olu, who referred to MSMEs as “the engine room” of growth, said the state’s economy has continued to grow, thanks to their resilience.
By expanding the workspace for operators to co-create and sustain their investments, the governor said it was time the government leveraged the growth opportunities by MSMEs to generate more jobs and revenue.
He said: “The disruption occasioned by the COVID-19 pandemic has further exposed the need to build a more stable and resilient economy by implementing 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 to 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. 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 from 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.
According to him, the intervention will generate more growth and create young jobs for the youth.
According to Sanwo-Olu, his administration has resolved all the issues raised during last year’s event, and he shared some of the findings with investors.
He noted that the state government has implemented the Harmonised Inspection Workplaces Policy, which combines the complementary regulatory activities of Ministries, Agencies, and Departments (MDAs) on 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 a 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 promised to address the new resolutions raised by private sector group members at their next meeting and that improvements will follow.
As Commissioner for Commerce, Industry and Cooperatives, Dr Lola Akande noted that since the Sanwo-Olu administration was inaugurated, there has been sustained investment in infrastructure provision across major sectors indicated in THMES, with the potential to grow the state’s Gross Domestic Product (GDP).
Akande said Sanwo-Olu introduced various stimulus packages and incentives to promote economic growth, including the repeal of the 2018 Law on Land Use Charge, which granted concessions and incentives on certain charges.
MSMEs will also make a five per cent initial loan deposit refund to all customers who have completed their loan repayment with Lagos State Employment Trust Fund (LSETF).
Adding that the ongoing installation of fibre optic cables across the state is beneficial for businesses that use the internet for their operations, she highlighted the fact that granting waivers to companies requesting water extraction permits reduced the cost of permits by 75 per cent and waived five-year arrears.
“At a time when the pandemic is ravaging the world, discussions on establishing a new kind of strategic partnership, more dialogue and exchanges between government and the organized private sector (OPS) will help revive businesses in the state,” Akande said.
Mrs Solape Hammond, the Special Adviser to the Governor on Sustainable Development Goals and Investment (SDG&I), said all growth predictions about Lagos were becoming a reality every day, which explained the Sanwo-Olu administration’s sustained investments in infrastructure.
At the Lagos Economic Summit (Ehingbeti), she said that 91 per cent of the 109 resolutions were implemented. This indicated that the State was on the right track to deal with its challenges.
Mrs Toki Mabogunje, the President of Lagos Chamber of Commerce and Industry (LCCI), praised the governor for accelerating the implementation of previous resolutions, recognizing the central role the private sector played in the growth of Lagos.
According to her, the state government must continue to promote policies that will lead to job creation in specific growth areas.
According to the Vice President of Manufacturers Association of Nigeria (MAN), Chief John Aluya, 2020 ended with a decline in capacity utilisation across industrial zones in the state due to COVID-19.
Despite this, he appreciated the efforts of Sanwo-Olu to help businesses and workers in the manufacturing sector cope.
