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DOING BUSINESS IN LAGOS
HIGHLIGHTING OPPORTUNITIES,
CONFRONTING THE CHALLENGES
STRENGHT OF LAGOS ECONOMY
 Population size of about 18 million – the large population of
the State is an enormous strength and platform to grow and
develop the economy of Lagos State.
 Embedded in the size of the population of the State is the
growing quality of human capital as a result of the
demographics of Lagos of young, aspiring and educated
manpower.
WEST AFRICAN DEMOGRAPHICS
2011 ESTIMATES (MILLION)
 NIGERIA
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162
BENIN
9.1
BOURKINA FASO 17
COITE ‘DEVOIRE 22.6
GAMBIA 1.8
GHANA
25
GUINEA 10.2
LIBERIA 4.1
TOGO
5.8
STRATEGIC GATEWAY
 Location and gateway status – By virtue of its location, the
State houses the two biggest ports in the country – Apapa
and Tin Can.
 The State thus serves and will continue to serve as a major
Gateway in and out of the country for imports and exports.
FINANCIAL HUB
 It houses the greatest part of Nigeria’s financial services,
including banks, insurance companies, and investment houses
and hosts the Nigerian Stock Exchange (NSE) market.
 Through this, it provides access for many companies and
government at different levels to both short and long term
capital.
WEAKNESSES OF LAGOS ECONOMY
FINANCIAL RESOURCES
 Inadequate capital, both human and financial The capital
required for the economic growth towards 2020 is
inadequate.
 The State will be required to improve on the ability to attract
both financial and human capita on an increasing basis.
INFRASTRUCUTRE
 Decadent infrastructure – The state of infrastructure in the
state requires significant maintenance, improvement and
building of new infrastructure to be able to support the
required economic growth.
POWER SUPPLY
 Poor power supply – The current level of power generation
and distribution in Lagos, as in other parts of the country, is
abysmal.
 This level cannot support the required economic growth.
 Indeed, the continued inability to solve our power problems
constitutes the greatest barrier to our future economic
growth.
OPPORTUNITIES
TRADE AND COMMERCE
 Trade and Commerce – Enormous opportunities to continue
to grow the economy using trade and commerce platforms.
Nonetheless, this sector requires a lot of improvement to
minimise the fragmentation of our markets.
FINANCIAL SERVICES
 Financial services – Greater opportunities exist for growth in
financial intermediation. Firms, businesses and government
will continue to require financial needs that will include
loans, bonds, investment advice etc.
 Individuals will also continue to require loans, mortgages,
insurance, investment advice, stock broking services,
providing avenues for financial services providers to continue
to earn incomes from interest differential businesses and
commissions from advice and trading services.
TOURISM
 Tourism – This area of the Lagos State economy holds
enormous promise. To fulfil the promise, tourism companies
will have to be developed around tourism potentials such as
festivals.
 Hotels and hostels development will also be developed
around tourism corridors while the government will provide
administrative and institutional support to the industry.
REVENUE GENERATION
 Robust Opportunities exist for revenue generation for
government in the state.
 It’s a reflection of the Private sector dominance in the state.
THREATS
FLOODING
 The topographical landscape of the State raises the threat of
flooding.
 With the climate change phenomenon, there is a high risk of
impact on coastal locations.
 But the State is very aware of this and has been taking
measures that ensure the threat is not realised.
MIGRATION ISSUES
 Excessive migration from other states – As the attraction to
Lagos State remains huge, the State must ensure it manages
the movement of people from other states for its ultimate
benefit and the benefit of the country.
 For example, ensuring that the influx does not result in
additional slums and blighted areas.
TRANSPORTATION
 The threat is serious but the identification of this threat
makes the management of it simpler than it would have ever
been.
 Because of the threats posed by gridlock on our roads, the
State is developing an intermodal transport policy that will
combine the use of water, rail and road transport.
MAJOR CHALLEGES TO BUSINESS
AND COPING STRATEGIES
CHALLENGES
 COST ISSUES
 MARKET ISSUES
 OPERATIONAL ISSUES
 POLICY ISSUES
 MACROECONOMIC ISSUES
 INSTITUTIONAL ISSUES
 LOGISTICS
 INDUSTRIAL RELATIONS
COST ISSUES
 COST OF FUNDS
 TENURE OF FUNDS
 INTERVENTION FUNDS
 EXCHANGE RATE
 CAPTIAL MARKET
 CORPORATE BONDS
MARKET ISSUES
 COMPETITIVENSS ISSUES
 SMUGGLING AND DUMPING
 DOMESTIC MARKET ACCESS
 GLOBAL MARKET ACCESS
OPERATIONAL ISSUES
 PERSONNEL ISSUES
 GLOBAL OIL MARKET AND DIESEL COST
 DEREGULATION OF THE DOWNSTREAM OIL SECTOR
 ELECTRICITY TARIFF REVIEW
POLICY ISSUES
 LOCAL CONTENT POLICY
 TRADE POLICY-IMPORT BAN ETC
 PATRONAGE OF MADE IN NIGERIA PRODUCT
POLICY
 EXCHANGE RATE POLICY
 MONETARY POLICY
MACRO ECONOMIC CHALLENGES
 INFLATION RATE
 EXCHANGE RATE SITUATION
 INTEREST RATE SITUATION
 FISCAL OPERATIONS OF GOVERNEMNT
 TAXATION
 GLOBAL ECONOMY
INSTITUTIONAL CHALLENGES
 ETHICAL AND TRANSPARENCY ISSUES
 BUREAUCRACY
 REGULATORY ISSUES AND COST OF COMPLIANCE
 TAX ISSUES
 LICENSING ISSUES
 CONTRACT ENFORCEMENT
 PROPERTY RIGHT PROTECTION
 SMUGGLING/COUNTERFEITING
LOGISTICS
 CONDTION OF ROADS
 COLLAPSE OF THE RAILWAYS
 LAW ENFORCEMENT ISUES
COUNTRY RISK CHALLENGES
 POLITICAL RISK
 SECURTY RISK
 EXCHANGE RATE RISK
 INTEREST RATE RISK
 FINANCIAL RISK
 POLICY RISK
 GLOBAL RISK
FUNDING OPPORTUNITIES
 BANK OF INDUSTRY
 BANK OF AGRICULTURE
 CBN INTERVENTION FUNDS
 EQUITY OPPORTUNITIES WHEN STOCK MARKET
RECOVERS
 BOND MARKET OPPORTUNITIES
OUTLOOK FOR INFRASTRUCUTRE
 POWER SECTOR REFORM
 ROADS CONCESSIONING
 REFORM OF RAILWAYS
SECURITY CHALLENGES
 EMERGING TERRORISM
 ETHNIC/RELIGIOUS DISTURBANCES
 NIGER DELTA MILITANTS AND THE AMNESTY
PROGRAMME
 ARMED ROBBERY INCIDENTS
ROLE OF THE LAGOS CHAMBER OF
COMMERCE
Investment Facilitation Activities
 LCCI public policy advocacy impacts positively
on government socio-economic policies - tax
policy, tariff and trade policy,
 Others are economic reform issues such as
Privatisation of Public Enterprises and economic
liberalisation. Foreign exchange policy, interest
rate policy, telecommunications policy etc.

.
Invesment Facilitation Contd
 Representations are made to governments at all levels
(federal, state and local governments) from time to time
on matters affecting the investment environment,
especially on the need to bring down the cost of doing
business.
 The Lagos International Trade Fair attracts many foreign
and local exhibitors and more than 1.0 Million visitors.
The investment promotion value is immense.
Investment Facilitation Contd.
 Facilitation of international business contacts through
direct linkages and matchmaking of domestic and
foreign investors.
 Organization of group participation in exhibitions and
trade fairs outside the country
 Regular hosting of Inward Trade Missions and
occasional organization of Outward Trade Missions
Investment Facilitation Contd.
 The Chamber collaborates regularly with the Nigeria
Investment Promotion Commission in facilitating
linkages between domestic and foreign investors
 Regular collaboration with international organisations
such as UNIDO, UNDP,IFC, EU, ECOWAS FUND etc

Small and Microenterprises Support
Programmes
Entrepreneurship
Development Programmes for
SMEs, and SME consultants.
Export
Development Seminars for SMEs with
special focus on exportable products, Export
Documentation, Export market information etc.
Business
Development Pogrammes for SMEs
and Micro enterprises.
ROLE OF ENTREPRENUERIAL SKILLS
BUSINESS SELECTION
 PERSONALTY FIT
 PASSION
 KNOWLEDGE OF BUSINESS
 EXPERIENCE
 SKILLS AND KNOWLEDGE
 EASE OF ENTRY
 UNIQUENESS
PASSION
 Self Discovery, Personal Vision
 What you like and love to do
 Passions drives business through the major challenges.
 Enhances efficiency and effectiveness
KNOWLEDGE OF BUSINESS
 How much do you know about the area?
 Will you have to spend extra time and money teaching
yourself the business?
 Will you have to take on a partner because you don’t know
the business well enough?
EXPERIENCE
 In some cases, you may have a lot of knowledge about the
subject, but not much experience.
 Have you ever owned or worked in this type of business
before?
 To what extent is hands-on experience crucial to the
business?
 Apprenticeship
YOUR SKILLS
 To what extent do you possess those skills relevant to the
business?
 If you lack them, how difficult will it be to acquire them?
EASE OF ENTRY
 Think both of the costs of entering the business and of
the competitive barriers that might exist.
 For example, a service business that you can run from
your home might be relatively inexpensive to start.
 But if several others are already providing that service,
entry in the field may be difficult.
UNIQUENESS
 Uniqueness does not necessarily mean that literally no
one else is providing the same product or service;
 It can mean that no one else is providing the product or
service in the same way you intend to provide it,
 Or it can mean that no one else is providing that product
or service in your area.
 You’re looking for some way to distinguish your product
or service from others who are already in business.
WILL POWER
 YOU MUST HAVE THE WILL POWER TO ACHIEVE
YOUR DREAM
 WHERE THERE IS A WILL, THERE IS A WAY
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5/23/2017