Governor Babajide Olusola Sanwo-Olu of Lagos State said that the government has given about N25 billion in grants and low-interest loans to help small and medium businesses, also called SMEs, through the Lagos State Employment Trust Fund (LSETF) over the past six years. This helps these businesses grow and makes Lagos State’s economy stronger.
He shared this news on Thursday during the 2024 Business Day Newspaper CEO Forum at Balmoral Hall, Federal Palace Hotel, in Victoria Island, Lagos. This information is also on the Lagos State Government’s website.
The Governor, who had Deputy Governor Dr. Kadri Obafemi Hamzat speak on his behalf, said these funds have helped business owners do better and keep the economy running.
“In the last six years, the Lagos State Employment Trust Fund has given out close to 25 billion naira in grants and low-interest loans. These loans help people keep their businesses going and teach them how to manage better,” said Governor Sanwo-Olu.
The Governor also mentioned that the government helps business owners find products, reach new markets, and work with important agencies like NAFDAC (National Agency for Food and Drug Administration and Control), BOI (Bank of Industry), CAC (Corporate Affairs Commission), and SON (Standards Organisation of Nigeria) to make sure they follow the rules.
Things You Should Know
A report by Newslodge earlier mentioned that the Lagos State Employment Trust Fund (LSETF) started a loan program to give small businesses the funds they need to grow, create wealth, and provide jobs. The interest rate for this loan is 9% per year, and it’s available to people living in Lagos State who are registered.
The LSETF was set up in 2016 to give financial help to people in Lagos State, aiming to reduce unemployment by creating jobs and wealth. They offer different types of loans to meet various needs.
One main loan type is the LSETF Micro Enterprise Loan, giving between N50,000 and N500,000 to each person. The most you can borrow is N500,000, and you have one year to pay it back. You must contribute 5% of the loan amount yourself, and the interest rate is 9% per year.
Another loan type is the LSETF Micro-Enterprise Startup Loan, which provides between N50,000 and N250,000 for new businesses. The most you can borrow here is N250,000, with the same one-year payback time and 5% contribution from the borrower. The interest rate is also 9% per year.
People living and working in areas like Epe, Ibeju-Lekki, Ikorodu, Kosofe, and Somolu in Lagos East Senatorial District can apply for the TACT Loan. This loan can be up to one million Naira with an interest rate of 6% per year.
The TACT Loan has different categories: Nano loans (N10,000 to N100,000), micro-enterprise startup loans (N50,000 to N250,000), micro-enterprise loans (N50,000 to N500,000), and small and medium enterprise loans (N500,000 to N1,000,000).