Lagos State Government has said that tech startups and fintechs are among beneficiaries of the N25 billion so far disbursed in grants and loans to Small and Medium Enterprises (SMEs) through the Lagos State Employment Trust Fund (LSETF).
Through the LSETF, Lagos State has been able to boost productivity and foster economic growth in the state, according to Governor Babajide Sanwo-Olu of Lagos.
Sanwo-Olu highlighted the impact of the grants and loans on empowering entrepreneurs and driving economic stimulation at the 2024 Business Day Newspaper CEO Forum, themed “Governors in Conversation – Innovative Governance: Steering States through Economic Turbulence,” held July 11 in Victoria Island, Lagos.
The Governor highlighted several key initiatives, including technology-related ones, implemented by his administration to create a conducive environment for business development. These initiatives include the Knowledge, Innovation, Technology, and Employment (KITE) hub, which serves as a space for young entrepreneurs lacking the resources to rent office or shop space.
Lagos State Governor: LSETF distributed single-digit loans
Represented by Deputy Governor Dr. Kadri Obafemi Hamzat, the Governor underscored the LSETF’s pivotal role in providing nearly N25 billion in financial support over the past six years to SMEs. These funds, he said, were distributed as single-digit loans to assist entrepreneurs in sustaining and growing their businesses, while also receiving training on effective business management practices.
The Governor highlighted several key initiatives, including technology-related ones, implemented by his administration to create a conducive environment for business development. These initiatives include the Knowledge, Innovation, Technology, and Employment (KITE) hub, which serves as a space for young entrepreneurs lacking the resources to rent office or shop space.
Additionally, he mentioned LASRIC for Fintech and other technology-driven businesses, as well as the Lagos Financial Centre, which provides a dedicated zone for financial services.
Notably, Statista’s statistics showed that in 2017, Small and medium-sized enterprises, reached approximately 71,300 and 1,800, respectively. According to the source, most of these companies were located in Lagos. However, the number of SMEs who benefited from the loan remains undisclosed.
Furthermore, the Lagos State government facilitated access to markets, product sourcing, and engagement with regulatory bodies such as NAFDAC, BOI, CAC, and SON, to ensure understanding of the law in running their businesses.
Sanwo-Olu reiterated the importance of creating a conducive business environment that enables private enterprises to thrive, generate employment opportunities, and contribute to the state’s economic development.
According to Sanwo-Olu, “it is for us to create those types of environments that allow private people to run their businesses and create jobs for the future.”
The Lagos State Government, he said, undertakes initiatives to promote business growth within the state. He expressed his administration’s dedication to enhancing Nano SMEs by providing them with access to grants and loans to ensure their continued success.
He also reiterated his administration’s commitment to facilitating the ease of doing business, fostering business growth, and supporting the overall development of the citizens. For him, “these are the goals of our administration as embedded in the T.H.E.M.E.S Plus developmental agenda with the M representing Making Lagos a 21st Century Economy.”
The Governor also announced plans to establish the largest food hub in Imota, aimed at aggregating food supplies entering Lagos and ensuring proper storage and food security. He stressed that these initiatives are designed to encourage young individuals to bring their innovative ideas to fruition with the necessary support.
The Lagos State Employment Trust Fund (LSETF) was established in 2016 through the enactment of The Lagos State Employment Trust Fund Law. Its primary objective is to offer financial assistance to residents of Lagos State in order to combat unemployment by fostering job creation and wealth generation. With an initial capital of N25 billion provided by the Lagos State Government over a four-year period, the Fund is poised to make a significant impact. Additionally, LSETF will seek to secure additional funding from a variety of sources, including donor partners, development agencies, corporate entities, and individuals, according to the government.
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