Lagos State government has given approval for a N1 billion Covid-19 support for the hospitality industry, which would be made accessible through the Lagos State Employment Trust Fund (LSETF), to ensure the sustainability of the sector.
The state governor, Babajide Sanwo-Olu, stated this on Wednesday in response to questions raised by the organised private sector (OPS) at the 6th Lagos Corporate Assembly tagged ‘BOS Meets Business’. According to the governor, the state is working in close collaboration with the Central Bank of Nigeria (CBN) on various interventions specifically for the hospitality sector in Lagos.
Sanwo-Olu also disclosed that the government was waiving all penalties on late filing of the 2020 annual tax returns, and a 20 percent tax credit on cash/kind donations made during Covid-19.
According to the governor, the state has started to deploy the first phase of its 3000 kilometres metropolitan fibre optics in partnership with the private sector to improve Nigeria’s broadband penetration and support internet backbone in Lagos metropolis. “There is going to be 6000 kilo metres of fibre optics cables in total,” said Sanwo-Olu.
On measures taken to ease the burden of the pandemic on businesses in Lagos, the governor said the state has consolidated all property and land-based charges into a single payment in a new 2020 Land Use Charge, and has given a waiver for three years late payment to cover the period of 2017 – 2019. “We have also given a 25 percent special discount on early payment,” said Sanwo-Olu.
Lola Akande, the state commissioner for commerce, industry and cooperatives, said the state government would continue to ensure collaboration with the OPS, not only to sustain the existing level of industrialisation, but also to accelerate the momentum of its development.
According to her, the state government will not relent in its efforts to keep citizens safe in the face of threats posed by the pandemic. Akande assured that it was the duty of the government to bring the disease under control and make economic activities continue to thrive.
“In order to minimise the economic impact of the coronavirus, we have taken steps to bolster key sectors and lessen the socio-economic impact of the pandemic on businesses in Lagos,” said Akande.
She listed some of the measures to include economic assistance packages such as the three-month moratorium on loans accessed by the MSMEs from Lagos State Employment Trust Fund (LSETF) and extended time for tax filing.
Toki Mabogunje, president, Lagos Chamber of Commerce and Industry (LCCI), said there was a need to save the hospitality industry from total collapse, urging the government to consider a partial reopening of sectors still under lockdown.
Represented by Micheal Olawale Cole, Mabogunje on behalf of stakeholders in the hospitality industry requested a one-year tax holiday/suspension on all taxes and levies on the hospitality sector.
The chamber, however, pledged support to the government, noting that it would take a while for businesses to recover from the impact of the pandemic.
