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HIGHLIGHTING OPPORTUNITIES, CONFRONTING THE CHALLENGESDOING BUSINESS IN LAGOSSTRENGHT OF LAGOS ECONOMYPopulation 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 DEMOGRAPHICS2011 ESTIMATES (MILLION)NIGERIA162BENIN9.1BOURKINA FASO17COITE DEVOIRE 22.6GAMBIA 1.8GHANA25GUINEA10.2LIBERIA4.1TOGO5.8

STRATEGIC GATEWAYLocation 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 HUBIt houses the greatest part of Nigerias 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 ECONOMYFINANCIAL RESOURCESInadequate 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.

INFRASTRUCUTREDecadent 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 SUPPLYPoor 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.

OPPORTUNITIESTRADE AND COMMERCETrade 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 SERVICESFinancial 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.

TOURISMTourism 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 GENERATIONRobust Opportunities exist for revenue generation for government in the state.

Its a reflection of the Private sector dominance in the state.

THREATSFLOODINGThe 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 ISSUESExcessive 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.

TRANSPORTATIONThe 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 STRATEGIESCHALLENGESCOST ISSUESMARKET ISSUESOPERATIONAL ISSUESPOLICY ISSUESMACROECONOMIC ISSUESINSTITUTIONAL ISSUESLOGISTICSINDUSTRIAL RELATIONSCOST ISSUESCOST OF FUNDSTENURE OF FUNDSINTERVENTION FUNDSEXCHANGE RATECAPTIAL MARKETCORPORATE BONDSMARKET ISSUESCOMPETITIVENSS ISSUESSMUGGLING AND DUMPINGDOMESTIC MARKET ACCESSGLOBAL MARKET ACCESSOPERATIONAL ISSUES PERSONNEL ISSUESGLOBAL OIL MARKET AND DIESEL COSTDEREGULATION OF THE DOWNSTREAM OIL SECTORELECTRICITY TARIFF REVIEWPOLICY ISSUESLOCAL CONTENT POLICYTRADE POLICY-IMPORT BAN ETCPATRONAGE OF MADE IN NIGERIA PRODUCT POLICYEXCHANGE RATE POLICYMONETARY POLICYMACRO ECONOMIC CHALLENGESINFLATION RATEEXCHANGE RATE SITUATIONINTEREST RATE SITUATIONFISCAL OPERATIONS OF GOVERNEMNTTAXATIONGLOBAL ECONOMY

INSTITUTIONAL CHALLENGESETHICAL AND TRANSPARENCY ISSUESBUREAUCRACYREGULATORY ISSUES AND COST OF COMPLIANCETAX ISSUESLICENSING ISSUESCONTRACT ENFORCEMENTPROPERTY RIGHT PROTECTIONSMUGGLING/COUNTERFEITING

LOGISTICSCONDTION OF ROADSCOLLAPSE OF THE RAILWAYSLAW ENFORCEMENT ISUESCOUNTRY RISK CHALLENGESPOLITICAL RISKSECURTY RISKEXCHANGE RATE RISKINTEREST RATE RISKFINANCIAL RISKPOLICY RISKGLOBAL RISKFUNDING OPPORTUNITIESBANK OF INDUSTRYBANK OF AGRICULTURECBN INTERVENTION FUNDSEQUITY OPPORTUNITIES WHEN STOCK MARKET RECOVERSBOND MARKET OPPORTUNITIES

OUTLOOK FOR INFRASTRUCUTREPOWER SECTOR REFORMROADS CONCESSIONINGREFORM OF RAILWAYS

SECURITY CHALLENGESEMERGING TERRORISMETHNIC/RELIGIOUS DISTURBANCESNIGER DELTA MILITANTS AND THE AMNESTY PROGRAMMEARMED ROBBERY INCIDENTS

ROLE OF THE LAGOS CHAMBER OF COMMERCEInvestment Facilitation ActivitiesLCCI 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 ContdRepresentations 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 MissionsInvestment 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 ProgrammesEntrepreneurship 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 SKILLSBUSINESS SELECTIONPERSONALTY FITPASSIONKNOWLEDGE OF BUSINESSEXPERIENCESKILLS AND KNOWLEDGEEASE OF ENTRYUNIQUENESS

PASSIONSelf Discovery, Personal VisionWhat you like and love to doPassions drives business through the major challenges.Enhances efficiency and effectivenessKNOWLEDGE OF BUSINESSHow 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 dont know the business well enough?EXPERIENCEIn 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?ApprenticeshipYOUR SKILLSTo 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 ENTRYThink 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.UNIQUENESSUniqueness 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. Youre looking for some way to distinguish your product or service from others who are already in business.WILL POWERYOU MUST HAVE THE WILL POWER TO ACHIEVE YOUR DREAMWHERE THERE IS A WILL, THERE IS A WAY

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