Lagos State Government says it will complete a new hub of commerce at Cappa in the Oshodi area of the state at the end of first quarter next year to provide subsidised workspaces for the Micro, Small and Medium Enterprises.

Governor Babajide Sanwo-Olu, on Thursday, disclosed that the Cappa hub would accommodate thousands of the MSMEs operating without workstations, adding that the state government was also looking for space in Somolu, Yaba and Obalende to replicate the kind of hub in Ikeja.

A statement by the governor’s Chief Press Secretary, Gboyega Akosile, quoted him as saying the intervention became necessary to strengthen small-scale businesses and draw down their expenses.

Sanwo-Olu announced the development at the 7th Lagos Corporate Assembly held at the State House in Alausa where the Governor met with members of the Organised Private Sector to chart a new course for the growth of the State’s economy.

Their conversation was said to be centred around reviewing the impact of the COVID-19 pandemic on businesses and resolutions implemented to further improve Ease of Doing Business, thereby making the state’s economy resilient.

The yearly event is a platform on which the Lagos State Government and members of the private sector jointly address regulatory issues hampering smooth running of business activities in Lagos.

Sanwo-Olu, who described the MSMEs as “the engine room” of growth, said the state’s economy had continued to climb up because of the resilience of small and medium businesses.

The governor said it was time the government leveraged the growth opportunities offered by the MSMEs to generate more jobs and revenue by expanding the workspace for operators to co-create and sustain their investments.

He said, “The disruption occasioned by the COVID-19 pandemic has further exposed the need to build a more stable and resilient economy through the implementation of sustainable economic policies and proactive initiatives that guarantee a safe business environment.

“The Small and Medium Enterprises have played significant roles in our economic growth and we will continue to give them the necessary support so that they can thrive and contribute their quota to the development of Lagos.

“We acknowledge that the MSME hub we have in Ikeja has been working fine; but it is oversubscribed and we are looking beyond that. We are currently building another hub in Cappa around Oshodi and I assure all micro, small and medium business operators that the new hub will be commissioned in the first quarter of next year. We are also looking for space in Somolu, Yaba and Obalende where we will replicate the kind of hub we have in Ikeja.”

Governor Sanwo-Olu also said there would be intervention in the areas of off-grid power, business mentoring, FinTech assistance and fast Internet connectivity.

The intervention, he said, would stimulate more growth and generate young employment for the youth.

Sanwo-Olu told members of the business community that his administration had resolved all issues raised during last year’s edition, sharing some of the progress with the investors.

Lagos Commissioner for Commerce, Industry and Cooperatives, Dr. Lola Akande, said the Sanwo-Olu administration, since inception, had sustained investment in the provision of infrastructure across major sectors identified in the T.H.E.M.E.S agenda, with potential to grow the annual Gross Domestic Product (GDP) of the state.

President of Lagos Chamber of Commerce and Industry (LCCI), Mrs Toki Mabogunje, hailed the governor for accelerating the implementation of previous resolutions, stressing that the forum recognised the role being played by the private sector in the development of Lagos.

Vice President of Manufacturers’ Association of Nigeria, Chief John Aluya, pointed out that 2020 ended with a downturn of capacity utilisation across industrial zones of the state due to COVID-19.