Purpose of the Lagos State Employment Trust Fund
The Lagos State Employment Trust Fund (LSETF) was set up by The Lagos State Employment Trust Fund Law in 2016 with objectives towards providing financial support to Lagos state residents in order to create more jobs and wealth.
The need to encourage entrepreneurship by improving access to finance, strengthening the institutional capacity of MSMEs and formulating policies designed to improve the business environment are the cardinal missions of the Initiative. Also, the Fund will initiate programmes to empower and train the unemployed Lagos residents as well as encourage the development of an innovative ecosystem in Lagos. Some of these programmes include:
1. Micro Small and Medium Enterprises (MSME) Loan Programme
This is a Loan Programme by the LSETF to help provide affordable access to capital for starting and growing small businesses at the same create sources of livelihood for people. The loan consists of a 5% interest rate per annum and only business owners who are registered residents of Lagos State are eligible to apply.
2. Lagos Innovates
Lagos Innovates are varied programs made up to accelerate the buildup of technology- and innovation-driven startups in Lagos State. It is aimed at establishing Lagos as the major hub for leading startups in Africa at large by providing easy access to high-quality infrastructure, learning, capital and networks. Lagos-resident founders and operators of co-working spaces and innovation centres are encouraged to sign the first three programmes: workspace vouchers, hub loans and events sponsorship, through open, merit-based, online applications processes.
3. The LSETF Employability Support Project
This project is created to deal with the issue of unemployment amongst the youths of Lagos state by helping them gain basic knowledge and skill through vocational training. The goal is to train 10,000 young people to be skilled in the following Category
- Manufacturing
- Hospitality
- Entertainment
- Construction
- Health
- Fashion Design
- These training will pave the ways for employment and entrepreneurship.
4. LSETF – W Initiative
This a special and independent intervention trust fund programme enacted by the Lagos state government in partnership with Access Bank. The initiative is targeted at providing women funds in form of capital to kick start businesses. The scheme is limited to 5000 – 10000 female residents annually and was signed into approval by the Lagos state Governor, Babajide Sanwo-Olu to mark his first days in the office.
Source of Fund
The Trust Fund started with a capital of N25Billion contributed over four years by the Lagos State Government other sources of the fund is provided by donor partners, development agencies, corporate organizations and individuals. The scheme financial sustainability is also dependent on Partnerships with International development organizations like The United Nations Development Programme (UNDP), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and The United States African Development Foundation (USADF) for employability programmes.
LSETF Success
MSME Loan Programmes has funded over 11,027 businesses with 7.20billion naira
LSETF Employability Support Project has trained over 5,403 resident beneficiaries and placed 2,587 in job positions within the state.
Lagos Innovates help issue a total of 97 workspaces to startup businesses in the Digital space.
The LSETF has also succeeded in creating over 97,000 new jobs, adding over 48,000 new taxpayers to the employment index.
Assessment report
90% of Beneficiaries supported by the LSETF recorded increased capital since receiving training/funding and at least 70% supported a person.
72% of small business owners who benefited from the LSETF loans improvements in business growth and personal life
Female beneficiaries have been reported to have provided support at least 5 individuals. The male beneficiaries on the other hand, have supported an average of 4, meaning 8,000 loan beneficiaries have directly supported at least 40,000 dependents.
76% of beneficiaries getting ready to pitch their product to investors and 18% are very hopeful of a positive response from investors interested in funding their innovations.