Press Releases

We Are Determined To Unleash Potential Of The Informal Sector - Fashola
• As Governor joins tradesmen, artisans to celebrate their week

May 13, 2010 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Thursday attended the grand finale of the State's first Tradesmen and Artisans' Week with an assurance that his administration is more than ever determined to assist the informal sector unleash its potential and entrepreneurial energy to create wealth and eradicate poverty.

Governor Fashola, who spoke at the Blue Roof Auditorium at the LTV 8 premises venue of the Week with the theme, "Unleashing the Potentials of the Informal Sector for Economic Growth", said the determination is borne out of the realization that the sector's potential as a growth pole and catalyst can only be enhanced when it is able to leverage its assets base to boost productivity.

He noted that currently many of the artisans and tradesmen are operating below capacity, not only on account of infrastructural inadequacy but also because of their inability to harness the benefits of their assets and seemingly "dead" capital for the creation of wealth.

"As a proactive Government, we have taken the initiative to correct this situation through our collaborative arrangement with an International Development Partner and this is aimed at developing crucial institutional reforms and legal framework that would facilitate your transition into the formal economy", the Governor told the hundreds of jubilant artisans and tradesmen who appeared in colourful Ankara attires made by them.

According to the Governor, "When these reforms are fully developed and implemented, your access to institutional credit and finance would be greatly enhanced and the fortunes of your businesses would equally grow".

Describing the Informal Sector as the core of the Micro, Small and Medium Scale Enterprises, Governor Fashola, who noted that the sector is largely responsible for the growth and vibrancy of economies, said the sector accounts for between 45 percent and 50 percent of urban labour force providing employment for people in various industries in Lagos State.

"There is no better time to acknowledge and celebrate the noble contributions of these industrious men and women upon whom the growth of our national economy largely depends", the Governor said adding, "I salute your courage, resilience and unshaken focus on the course of advancing the economy of our dear State".

He said because his administration is not unaware of the challenges of the sector operators in their daily struggle to remain in business the administration has taken it upon itself since assumption of office, to identify those problems that have bedeviled the sector with a view to evolving policies and initiating programmes that would assist operators to grow and expand their businesses.

Such problems and challenges, Governor Fashola said include inadequate skills, and lack of access to finance, adding that his administration, in order to address these, established skill acquisition centres in various parts of the State while also establishing the State's Micro-Finance Institution to partner with selected Micro-Finance Banks to provide easily accessible credit at affordable interest rates.

"Similarly, our administration has commenced the development of enterprise Zones (EZs) in the three Senatorial Districts of the State in recognition of the need to provide land and other necessary infrastructure that would help enhance the sector's productive capacity", Governor Fashola said.

Soliciting for the continued support of the sector, the Governor told the operators, "Given our level of commitment as a government to the growth of your business and development of the informal sector, we are encouraged to reiterate that you continue to pay your taxes and support the State Government's programme to enhance the fulfillment of our terms of social contract".

He thanked the leadership of the State's Council of Tradesmen and Artisans for their "dynamism, astuteness and exemplary attitude in the conduct of the affairs of the movement of the tradesmen and artisans in the State adding that the donation of an 18-sitter bus to the Council was a practical demonstration of the Government's support to the activities of the operators.

In his remarks, President of the Council, Engineer Bola Sanusi, thanked the Lagos State Government for all the programmes it has established to alleviate poverty among the less privileged citizens of the State especially the establishment and funding of a Micro-Finance bank through LASMI.

He implored the Government to assist the council by negotiating with micro-finance banks to reduce their high interest rates from 5 percent or 4.5 percent to 1.5 percent adding that there is need for the Government to also increase funding of the micro-finance banks to enable the general public benefit from the programme.

Earlier in his welcome remarks, the Commissioner for Commerce and Industry, Prince Adeniyi Oyemade, said the event was put together to celebrate the contributions of the informal sector to the State's economy and also to showcase their potentials to members of the investing public.

Highlights of the occasion included the presentation of awards in different categories to individuals and groups as well as the inspection of the various exhibitions mounted by the various segments of the artisans and tradesmen by the Governor.

Also present at the occasion were the Special Adviser on Commerce and Industry, Mrs. Sola Oworu, and her Taxation counterpart, Mr. Ade Ipaiye, representatives of Alhaja Abibatu Mogaji, the Iyaloja General, Body of Permanent Secretaries, Traditional rulers and other top government functionaries.