Plate 4.14 Skill acquisition programmes

The ministry also introduced other poverty reduction initiatives, which included microcredit lending through microfinance banks, and financial and material empowerment of parents with multiple births and those that are physically challenged. The first of such centers was commissioned in 2007 and since then one of such centers has been established in each of the 20 local government areas of the state. A total of 5,300 students have graduated from these skill acquisition centers. Some of these graduates were formerly “area boys” whose incessant menace has now been reduced drastically in Lagos.

Apart from this long-term training, the government has been organising regular short-term vocational training and over 30,000 women across the state have benefited in skills such as catering, soap and pomade manufacture decorations, production of stove thread and insecticide, tie and dye, beads stringing, hat making, and hair dressing (plate 4.15). The government established the Lagos State Microfinance Institution (LASMI) to provide easy access to micro-credit loans for women and youth to start their own businesses, especially those who benefited from the vocation skill acquisition training programmes.

Credit loans are given automatically to the beneficiaries to purchase equipment and commence their businesses. Such loans range from N20,000 to N100,000 and are collateral free. The only requirement is that the beneficiaries inform the LASMI as to where they live and provide them with a guarantor. The repayment of such loans has been almost 100 percent. This is possible because the beneficiaries are particularly sensitive to loan repayment, and they fear the consequences of default especially within the highly regarded social system in which they reside. The LASMI has partnered with eight banks for this programme. These are the Integrated, Gapbridge, LASU, Ojokoro, MIC, City Serve, G.L., and Infinity Micro-Finance banks. Almost 25,000 persons have benefited from the programme since its inception in 2008. The government’s micro-credit scheme has been a useful tool to alleviate poverty and create employment.

One of the major job-creating projects is the construction of the Lekki Free Trade Zone (FTZ), which is being developed with a Chinese consortium. While the Lagos state government has provided the land as equity contribution, the Chinese consortium is funding the infrastructure (including power, water, sewage, and some roads) for the first phase. The agreement with the Chinese is that there would be some skill transfer to the local Nigerians. There are four Nigerians working with every Chinese on this project to acquire the necessary skills. The local communities are given jobs that they are capable of handling, which is a source of employment creation.

Under a special arrangement, the Lagos State Drivers’ Owners Association has been assisted with loans to purchase brand new vehicles to create jobs, alleviate poverty, and improve the transportation system within Lagos megacity.

The key sources of revenue generation in Lagos state are taxes, federal monies (allocations), bonds, land-use charges, sales tax, development assistance, lotteries, joint ventures, and concessioning arising from PPPs.

The state’s internally generated revenue profile has been rising since 1999. It rose from N7 billion a month in 1999 to N11 billion in 2008 and was more than N15 billion in 2010. It is expected to reach N25 billion in 2020.

Improved government financial controls and other steps intended to create a favourable climate for investment have seen confidence grow in Lagos as a destination for investors. An agreement for the largest direct funding of a sub-national government had been concluded between the Lagos state government and World Bank. Multilateral donor partnerships include $150 million for public transportation, $100 million for water expansion, and $200 million for a slum-upgrading project.

Some programmes are designed to train and educate all sectors of the society. Together with job creation strategies, these create large corps of skilled employed people and, in turn, develop new markets.

The potential in the growing market of Lagos for investment is already recognised by many foreign companies. For example, LG Electronics, a global home appliance company, has opened a N600 million plant in Apapa to produce products for Lagos state and beyond. As stated by Mrs. Olusola Oworu, Special Adviser to the Governor on Commerce, Lagos “is ready for business.” The intention of the government is to make Lagos “the Dubai of West Africa.”

CHAPTER five

Lessons Learned

The implementation of the different reforms discussed in chapter 4, were all aimed at promoting effective, equitable, participatory, and accountable governance as well as the security of life and property. No doubt the implementation of these reforms presents its own challenges from which several lessons can be learned. In this chapter, an attempt has been made to capture some of these lessons including the:

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  Evolving of an institutional framework for effective service delivery.
  
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  Promotion of participatory governance.
  
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  Putting in place of structures for effective resource mobilisation, transparency, and accountability.
  
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  Planning and strategic visioning of development.
  
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  Information and communication technology (ICT) and use of data for planning.