Encomium
…As Governor clarifies issues on building permits, consumption tax, others.
Lagos State Governor, Mr Babatunde Fashola (SAN) on Wednesday hosted the third Lagos Corporate Assembly tagged “BRF MEETS BUSINESS” clarifying several issues and urging all Stakeholders in local production of goods to raise the bar in order to be able to withstand Continental competition.
The Governor who spoke at the Banquet Hall of the Lagos House, Marina where he hosted members of the Organised Private Sector (OPS) and leading entrepreneurs in an interactive session explained that countries like Kenya, Zambia and the South Africans are coming in and that if the standards are not raised the African countries may outrun Nigerian manufacturers.
Providing insights into various areas impacting business and standards, he reiterated that the kind of business models adopted by Nigerians have largely been attributable to the level of successes or otherwise recorded with the operation of such businesses, adding that a business concern established without first conducting a market survey and well thought out plans is most probably going to flounder.
Giving an example of one of the common unsustainable business models, the Governor said it was rather surprising that the Director General of NACCIMA referred to street traders as members of the association, explaining that it is ironical that people complain of traffic bottlenecks yet they give justification for street trading.
According to him, the small businesses that have succeeded have not thrived on the roadsides because no bank will be willing to extend credit to a seller operating on the roadside without a fixed business address.
While clarifying other issues raised by the participants, the Governor noted that in the past one year, Lagos State has not closed down any market in the state except Ladipo market which was shut because of the refusal of the traders to observe environmental sanitation laws adding that normalcy had since been restored and infrastructural development taken to the area once the traders agreed comply with the regulations.
The State helmsman who also responded to complaints that title documents still take a very long period to process in the State said even in the United Kingdom, a building permit cannot be processed within 30 days.
He added that between January and June this year, the State Government through the State Ministry of Physical Planning and Urban Development has given 706 building permits to various applicants in a process that has been painstaking and very thorough.
While shedding more light on the issue, the Governor stressed that the issuance of building permits are complex issues which is not about today but about what will happen in 30 to 40 years time.
According to him, most of the incidents of collapsed buildings being recorded today are not houses recently constructed but those that were constructed over 30 years ago when there were no issues of soil test being carried out before buildings were constructed.
The Governor said in instances where there have been delays in getting titles to lands perfected, most owners of such documents have resorted to using third parties to process the papers instead of interfacing directly with the State Government agencies and that it would be most unfair to attribute such delays to deliberate quest for gratification by public officials.
While clarifying issues relating to the environment, he noted that it is not the responsibility of the Lagos State Environmental Protection Agency (LASEPA) to choose consultants or contractors for manufacturing outfits that have been contravened, adding that the manufacturers should resist such attempts if it is made.
On the possibility of extending the dedicated power currently being enjoyed by small businesses in the Isolo Industrial estate to medium industries, the Governor reminded that the power supply is regulated by the Power Reforms Act which only allows self embedded distribution in a cluster like Isolo because it is owned by the State Government which may not be possible to extend to concerns outside the cluster.
On claims by one of the participants that his company’s request for approval to build a tank farm in the Akodo area has not received approval in the last couple of years, the Governor explained that given the safety hazards engendered by the misuse of Apapa Industrial Estate for tank farms it is only if such an application requested for an appropriate place within the Lekki Free Trade Zone that it would see the light of the day.
He added that government is keen to avoid a repeat of what is happening in Apapa in terms of the activities of tank farm owners in any part of the State and has dedicated a sector of the Free Trade Zone to tank farm developments.
On complaints about the activities of Local Governments concerning collection of revenue and taxes, the Governor urged everyone to read the fourth schedule of the 1999 Nigerian Constitution which concerns the functions of the Local Governments.
Governor Fashola reiterated that Local Governments in the State have no traffic management responsibilities and that the State Government would also look at the possibility of encouraging individual local governments to publicly display list of approved levies and taxes at the respective local Governments to guide members of the public on such payments.
On complaints about the habits of some LASTMA operatives who seek to criminalize unexpected breakdown of vehicles on highways, the Governor explained that his personal experience on that assertion has been to the contrary as he has severally seen LASTMA officials assisting motorists with broken down vehicles to push such vehicles away from the main road.
Noting that the preponderance of the opinion of residents of Lagos have always been that LASTMA should remain on the road and that government believes that what should be done improve on its operations, the Governor informed that on Tuesday, 3311 officials of LASTMA and KAI who had undergone intensive training graduated after signing on to a new code of ethics while they have also had their appointments regularized as officers in the State Public Service with pensions.
According to the Governor, what is expected of members of the public is to show some courtesy to the LASTMA officials who take it upon themselves to be out there during sunshine and rainfall directing traffic and ensuring that it is moving.
Governor Fashola reiterated his assertion that in the course of apprehending a traffic offender, a traffic officer should allow such an offender to go scot free if he is convinced that in the process of arresting him, traffic situation would become more compounded.
Underscoring its importance, the Governor used the occasion to reiterate the message of the Lagos State Residents Registration Agency (LASRRA) adding that every resident of Lagos must ensure that he or she participates in the exercise which is aimed at getting a reliable data base for planning in Lagos.
The Governor also took time to clarify issues raised by the Chairman of the Hotels and Personal Services Employers Association, Chief Olu Alabi who had earlier said that the group is not opposed to the introduction of the Consumption Tax by the State Government but is only seeking to establish that the State Consumption law and VAT are the same.
He explained that the Consumption tax is different from VAT as one is the value that is added while the other one is levied on what is consumed, adding that it is very gladdening to him that Chief Alabi has admitted that the body is not opposed to the collection of the tax by the State Government.
He said in overseas countries, Nigerians pay for taxes like council tax, consumption tax and even VAT without complaining, adding that a flashback should be made to year 2007 when the whole state was in darkness.
He noted that the present administration in Lagos has now restored night life, making it easier for people to patronize hotels and even pass the night at such places due to the improved state of security in the state.
The Governor explained that the new law is only about how businesses can grow and how children that are yet unborn will get job opportunities through the various vistas of opportunities that would be opened through the payment of the taxes and the beneficial effect on the economy.
The Governor said it is noteworthy that since the State Government conceived the idea of the Corporate Assembly with the Private Sector, both parties have succeeded in resolving some of the differences that have been identified.
Earlier while giving a progress report on what has been achieved in the last one year since the meeting took place, Commissioner for Commerce and Industry, Mrs Olusola Oworu said the State Government is working with the Organisation for Economic Development to establish a policy framework for investment and also looking at
Alternate Dispute Resolution mechanisms for access to land and SME developments.
She added that the state is also working with the Lagos Business School (LBS) to examine the competitiveness of the State in the field of agriculture and transportation towards ensuring that Lagos remains a competitive arena in the Continent.
Mrs. Oworu said in terms of requests made at the last Assembly as it concerns support for SMEs, the State has set up two Agro Allied Parks with one in Imota and another one with 100 hectares land in Igbonla.
She explained that the State has also established three medium enterprises cluster at Gberigbe, Ibeju and Ijanikin while providing a 500 KVA generator that supplies 18 hours uninterrupted power to the Isolo Industrial Estate and added that government intends to replicate this in the Matori and Yaba Estates.
She also said the State has streamlined the collection of Wharf landing charges and addressed complaints about multiplicity of government agencies visiting companies by harmonizing to ensure that such agencies will now go out at the same time.
Mrs. Oworu also informed that on issues about LASAA charges for small businesses, the rate has been reduced to N39,500.00 just as work has been commenced on three roads in Amuwo Odofin Industrial Estate and Ilupeju Industrial Estate.
On observations that several Cooperatives have not been able to access Bank of Industry loans because the State Government did not guarantee them, Mrs Oworu said 11 of such applications were received out of which five have been treated while the remaining six are yet to comply with the necessary paper works.
While making a presentation on the Consumption Tax in Lagos, the Chairman of the State Internal Revenue Service (LIRS), Mr Tunde Fowler said the National Employers Consultative Assembly (NECA) and all the agencies involved have resolved to pay the taxes.
He said out of the 1566 registered hotels in Lagos State, 1,010 have complied with the provisions of the law.
In his presentations, the President of the Lagos Chamber of Commerce and Industries, Alhaji Remi Bello expressed appreciation for the continued cooperation existing between the State Government and the Organised Private Sector.
He also commended the improved state of security of lives, environmental cleanliness of the state, effective traffic management which has ensured free flow of traffic and creation of new industrial parks by the state government.
He also raised some issues of concern including the delays in perfection of land titles, over bearing attitude of local government officials especially in traffic management, activities of the Lagos State Environmental Protection Agency (LASEPA) and the restoration of ownership of the Lagos Trade Fair Complex in Badagry to the State Government.
In his contribution, the Director General of the Nigeria Chamber for Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede commended the Lagos State Government for its intervention on the Lagos -Badagry Expressway and called for deeper collaboration between the State Government and the various manufacturing bodies towards ensuring better service delivery.
The Corporate Assembly attracted dignitaries like the Chairman of Honeywell Group, Chief Oba Otudeko, former Minister of Industries, Chief (Mrs) Nike Akande, members of the State Executive Council namely the Special Adviser on Commerce and Industry, Mr Seye Oladejo, Commissioner for Education, Mrs Olayinka Oladunjoye, Special Adviser on Revenue and Taxation, Mr Abimbola Shodipo and Central Business District, Mrs Derin Disu, and several other big wigs in the Corporate world.
SIGNED
HAKEEM BELLO
SPECIAL ADVISER TO H.E ON MEDIA
DECEMBER 11, 2013.
