Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu, announced that the state government has disbursed approximately N25 billion in grants and single-digit loans to Small and Medium Enterprises (SMEs) through the Lagos State Employment Trust Fund (LSETF) over the past six years to boost productivity and economic growth.
He disclosed this on Thursday at the 2024 Business Day Newspaper CEO Forum held at Balmoral Hall, Federal Palace Hotel, Victoria Island, Lagos, according to a statement on the Lagos State Government’s website.
The Governor, represented by Deputy Governor Dr. Kadri Obafemi Hamzat, stated that the grants and loans have empowered entrepreneurs to thrive in their businesses and stimulate the economy.
“The Lagos State Employment Trust Fund over the past six years has given out close to 25 billion naira in terms of grants and assisting people with loans. In this case, single-digit loans were offered to them to sustain and train them on how to manage their businesses,” Governor Sanwo-Olu stated.
The Governor also noted that the state government has helped entrepreneurs source products, access markets, and interact with regulatory agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC), the Bank of Industry (BOI), the Corporate Affairs Commission (CAC), and the Standards Organisation of Nigeria (SON) to ensure compliance with legal frameworks.
TheWitness previously reported that the Lagos State Employment Trust Fund (LSETF) launched a loan program aimed at providing affordable funding for small businesses to grow, expand, create wealth, and generate employment. The loan scheme offered an interest rate of 9% per annum and was available to registered residents of Lagos State.
Established by the Lagos State Employment Trust Fund Law of 2016, the LSETF aimed to provide financial support to residents of Lagos State to tackle unemployment through job and wealth creation. The fund offered several loan categories to cater to different needs.
One of the primary loan categories was the LSETF Micro Enterprise Loan, which provided between N50,000 and N500,000 per person. The maximum loan amount was N500,000 with a tenure of 12 months and no moratorium. Borrowers were required to make an equity contribution of 5% of the loan size, and the interest rate was 9% per annum.
Another category was the LSETF Micro-Enterprise Startup Loan, offering between N50,000 and N250,000 per person. The terms included a maximum loan amount of N250,000, a 12-month tenure, and a 5% equity contribution. The interest rate remained at 9% per annum.
Additionally, residents and business owners within the Lagos East Senatorial District, encompassing areas such as Epe, Ibeju-Lekki, Ikorodu, Kosofe, and Somolu, were eligible to apply for the TACT Loan. This loan offered up to one million Naira at an annual interest rate of 6%.
The TACT Loan was divided into several categories: Nano loans ranging from N10,000 to N100,000, micro-enterprise startup loans from N50,000 to N250,000, micro-enterprise loans from N50,000 to N500,000, and small and medium enterprise loans from N500,000 to N1,000,000.