The Lagos State Government has reversed its decision to start charging tech hubs across the state a sum of N150,000 annually as a safety audit fee. This followed criticisms of the plan by stakeholders, who felt the government would be stifling innovation by taxing a growing ecosystem.
They also faulted the government for not consulting with the tech community before coming up with the audit fee, which was slated to be enforced between September and November.
However, announcing the suspension in a statement, the Lagos State Safety Commission (LSC) said the decision to charge for safety was not motivated by revenue generation but to cover the cost of safety audits on every facility in the state. It added that it was suspending the fee to engage with facility owners in the state.
What they are saying
Reacting to the proposed fee, the CEO of Jidaw Systems, an IT solutions company, Mr. Jide Awe, told Nairametrics that such a fee, if implemented, would discourage investments in tech hubs and innovation in the State. “All states, not just Lagos state, should be encouraging youth innovation and startup ecosystem activities which are youth-led. Tech hubs provide unique spaces for young people to develop fresh and disruptive ideas and implement them in ways that can improve and transform the state and the country,” he said.
Meanwhile, the Lagos State Safety Commission in a statement announcing the suspension said: “The growth of co-working spaces is a global phenomenon that is welcomed and encouraged in the State. However, the proliferation of these value-creating entities inadvertently has led to several workplace-related injuries and safety hazards including ill-equipped electrical wiring systems, over-capacity of facilities as well as landlord-tenant disputes related to equipment safety operations such as generator management activities.
“To forestall these rising incidents, the Safety Commission commenced the safety inspections of all co-working spaces in the year 2020 in the State to identify potential hazards and proffer solutions to mitigate such whilst enring a safe working environment for all as carried out in other domains such as restaurants, cinemas, supermarkets, etc.”
“The Safety Audit fee is not arbitrary. This fee is statutorily associated with facilities that engage and welcome members of the public beyond a certain footfall in many business and civic sectors. These include cinemas, restaurants, event spaces, schools, clubs, etc.
“This fee is in no way underpinned by a revenue-generating philosophy but is however a fee to cover the resultant costs from safety inspections and audits with experts and specialized equipment. It is NOT and will not ever be revenue generating fee. Additionally, the Safety Commission’s number one priority is to ensure the safety of residents in their use of these facilities,” it added.
“Consequently, to ensure adequate stakeholder engagement and representation, the Commission wishes to suspend the planned audit whilst providing further necessary training sessions with the facility owners,” the Commission stated.
What you should know
- The LSC was instituted in 2011 to oversee matters relating to the safety of residents’ life and properties. Safety Audit is only one of the 16 departments under the Commission’s confines.
- The LSC also ensures safety in construction sites, manufacturing companies, and corporate services facilities. This begs the question of what is done to prevent the incessant building collapse incidents experienced in the state.
- In a notice to the tech hubs dated September 14, 2022, this safety audit would attract an annual N50,000 documentation fee and N100,0000 certification fee payable to the LSC’s account.
