The Lagos State government has said disbursement of the N25 billion Employment trust fund will begin when the House of Assembly approves guidelines to access the fund.
Executive Secretary of the State Employment Trust Fund (LSETF) Akintunde Oyebode, at a briefing yesterday, said the N25 billion would provide financial support to over 100,000 Micro, Small and Medium Enterprises (MSMEs) in three years.
Oyebode said the board was aware Lagosians had been asking questions on how to access the fund, adding that it spent the last few months addressing the grey areas.
“After the completion of the research, the board, working with its appointed consultants, developed a strategic framework articulating its goals, key interventions designed to enhance job creation, and supporting infrastructure needed to deliver the goals.
‘’This exercise has now been concluded and approved by the State Executive Council,” he said.
Highlighting some frameworks for disbursement, Oyebode said the fund would provide loans to MSMEs at a single digit interest rate per annum.
“The businesses we support must demonstrate capacity to repay our loans; be owned by residents duly registered by the State Residents Registration Agency (LASRRA); show evidence of tax payments to the Lagos Inland Revenue Service (LIRS) and have valid Bank Verification Numbers (BVNs).”
Oyebode said the fund would have multiplier effect with the capacity to create 300,000 direct and 600,000 indirect jobs. About 200,000 new taxpayers would be added to the state’s tax net.
He said the LSETF Board hopes to raise N25 billion from domestic and international donors, in addition to the N25billion already committed by the government.
“Once the pilot phase is completed, we will roll out our loan schemes in all 57 councils and LCDAs. This will see us visit all councils to hold stakeholder sessions, where our staff will educate applicants on the application process and the eligibility criteria for our various schemes.
“We are also in the process of setting up liaison offices in 20 councils to bring the Fund’s activities closer to the people, and increase our points of representation,” Oyebode said.
Corroborating him, Commissioner for Wealth Creation and Employment Babatunde Durosinmi-Etti said the Ambode administration was committed to ensuring that the fund impacts on the lives of Lagosians.
He lauded the plan to set up liaison offices, saying it would ensure that no area is marginalised.