BUSINESS SURVIVAL IN LAGOS STATE

[Paul Adiku]

Wahala be like doing business in Lagos.

A few minutes ago, my Admin Manager called to say some people from the local government had come to our facility. Normally, local government visits are usually about health and fumigation certifications or facility inspections, at least that's what I'm used to from other places we've operated.

So, I asked my Admin Manager why she hadn't simply handed over the relevant documents. She said this particular officer insisted on speaking directly with the owner of the business and refused to engage with the team at all.
Given my relationship with local government officials in areas where we've previously operated, I asked them to give him my number. He called, and I was friendly: "Oh, you're welcome. Thanks for visiting."

Then he said we had a payment due to the local government that every business is mandated to pay.
I said, "Okay... what's the payment for, and how much is it?"

He replied that it's called a "corporate payment" and that it's ₦800,000 annually. According to him, we're also owing arrears.

I said, "Ah! ₦800,000 how? What do you mean? If a business has an annual turnover of ₦2 million, they still have to pay ₦800,000?"
He said yes. According to him, the levy was approved by the National Assembly for local governments, and every business is mandated to pay it.

Honestly, I just started laughing.
I told him we'd talk later.
What in God's name is going on in Nigeria?

Is anyone familiar with this so-called ₦800,000 corporate payment from the local government?

Roberta Edu

 

[Paul Adiku]

Surviving the Lagos business environment is tough.
What if I didn't have the connections I have? The guys were even threatening to lock up the facility today unless we paid.

I reached out to the Chairman's office and the Health Department of the local government. It turns out he doesn't even work there.

They're also not aware of such fees.

 

[Grace Ufochuku]

Let them drop a detailed document stating what the bill entails (a demand notice precisely, with their contact information including phone numbers and office address).
Even if they're smart enough to give you something that looks legitimate, it should be investigated by the state's Centre for commerce, business premises or whatever regulatory bodies are in charge.

Then, if by any means it proves to be fraudulent, they better pray they have a lawyer that has a lawyer who has a lawyer that has a family of lawyers with a great history of winning cases because. . .

 

[Ikpeazu Linda]

Pure lie o,
There's nothing like Corporate Payment. The only lawful approved fees/levy mandated by Local Govt Councils to collect is called Tenement rates.
It is usually a small negligible amount and it's usually paid to the Revenue Officer of the Local Govt where your business is located and receipts will be issued.

Pls don't negotiate with any tout that stops by your business premise, tell him you're coming to the office. Some of them will try to give you a fake Local Govt Council address, no go o. Go to the Local Govt Secretariat and ask for the Director of Finance, after speaking with him if need be, he will call the Revenue Cashier for you to make payment & issue you a receipt.

I hope this helps

 

[Eno Bassey]

This reminded me the day done "corporate agberos" showed up in our factory earlier this year. The way our doors are structured, it can only be opened from the inside. And our factory is inside a residential building.

So when they knocked and we asked, who they're looking for. They said they're from local government and that we're owing some levy.

I was standing right there at the door, so I already knew they were crooks. I asked what's the levy about. They said it's for all businesses in the area, and it was N500k per business. They said we should open the door for them to enter. I said this is not the kind of business they can just walk into. I told them to provide a signed document from the governor that shows we're owing government.

They were 3 men within age 50 or late 40s, and the elderly one started threatening me and speaking in local language. Unknown to him, he's dealing with a crazy person too.

I tried to let them go gently, they were making threats. I changed it for them immediately.

They made more threats. I made more threats.

At this point, I was raising my voice and warning them to get out of our premises or sleep in police cell. See me see mouth

See, to run a business in Nigeria, you have to have some level craze, otherwise you'll be doing all the work and one corporate agbero would be using you to chop food.

 

[Ita Grace]

Ask him or her for account details where to make payment and you'll be shocked it's going to be a private account. If at all, go to the said local government and make enquiries yourself.

 

[Evidence Ochuko]

This is one of the things that discourage people from investing in Nigeria. After paying your taxes, no regular electricity to run your business, of course, you have to provide that yourself..Yet, some corrupt officials wouldn't allow one to operate the business without asking for money that goes to ghost accounts..They don't even care whether the business is making profits or not...