Thriving in Lagos is becoming hell, foreign investors lament

Thriving in Lagos is becoming hell, foreign investors lament

- The condition transportation in Lagos is really discouraging a lot of foreign investors

- These owners of startups also decry high licence fees from the state government

- The business owners are also complaining about strict regulatory laws by the government

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Except something very drastic is done by the Lagos government, investors may totally abandon the state due to strict regulatory restrictions and high licencing fees.

Apart from the harsh economic realities that came with the coronavirus pandemic, many foreign investors have lamented that Lagos is no more business-friendly, Quartz Africa reports.

Some of these businesses like SafeBoda, Bolt, Uber, Konga and a few other transportation-based start-ups have complained that the treatment from local transport unions are threatening their vision to expand their frontiers in the state.

Added to this, there is the fear that the government has no intention to slow its tax drive which the investors are yet to come to terms with alongside the increasing cost of living in the state.

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Thriving in Lagos is becoming hell, foreign investors lament

A congested area in Lagos state (Source: UGC)
Source: UGC

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Also affected are motorcycle-hailing startups. After a pricey licensing fees proposal, the government moved to ban them from operating in the state within a year. Some were forced to sell off assets at a loss.

Another painful factor that is discouraging most of these startups is the tragic state of transportation in Lagos which make it difficult for them to satisfy their customers.

As the costs of doing business in Lagos continues to go up, startups are moving to other states.

Meanwhile, Legit.ng reported the story of Paul Orajiaka which was a perfect example that Nigerian youths had great entrepreneurial spirits that could turn the least sought-after thing into an empire.

The CEO of four-story Auldon Toys building, Paul has his business situated in one of the busiest places in Lagos state, the nation’s economic valve.

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He never had it easy as Paul had to start from a very humble place. He began his toy selling business at the young age of 18.

At that age, he would buy from a big local trader and resell it to Park ‘n’ Shop just for a very tiny profit. It is interesting to note that he was doing that as a side hustle to his day job, How We Made IT In Africa reports.

“I am passionate about toys because I didn’t grow up with them. My dad had a strict worldview of work over play, so he brought us up working in his craft shop to learn how to make wood carvings rather than letting us play with mates,” he said.

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Source: Legit

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