Lagos Provides N1bn Intervention Fund for 705 SMEs

*Promises to 600,000 jobs by 2019

Gboyega Akinsanmi
The Lagos State Government yesterday granted N1 billion to 705 small and medium enterprises to expand their businesses as part of the N25 billion Employment Trust Fund (ETF) meant to generate employment.

The state government also promised to create at 600,000 jobs through its N25 billion employment trust fund, which the state Governor, Mr. Akinwunmi Ambode, initiated shortly after he assumed office in 2015.

He presented cheques to beneficiaries at the LTV complex, Ikeja, urging them to utilise the fund for the purpose of boosting the state’s economy.

Ambode explained that during the course of his campaign, he identified unemployment as a major socio-economic challenge facing Lagos State and Nigeria as a whole.

He then promised to prioritise job creation and set up an Employment Trust Fund “to provide support to youths, entrepreneurs, artisans and other unemployed residents of Lagos State.

“Our role as the representatives of the people is to constantly find solutions to societal challenges and improve the lives of our people. Today, 705 beneficiaries will receive various amounts of money ranging from N50,000 to N5 million, totalling almost N1 billion to grow and enhance their businesses.

“We are funding businesses and individuals including carpenters, hairdressers, electricians, automobile parts repairers, block makers, bakers, fashion designers, cake makers, food sellers, kerosene retailers, mobile money agents, painters, plumbers, photographers and light manufacturers of liquid soaps and water,” he stated.

The governor said for small and medium enterprises (SME), his administration had provided loans to people in hospitality, ICT, education, food and beverages and agriculture, saying that these beneficiaries were making history as the first set of beneficiaries of the ETF.
“My charge to you is simple: you must use these funds responsibly, grow your businesses, create jobs for our unemployed youths and contribute to the growth of the Lagos State GDP,” he said.

He explained that the idea behind the scheme was that for every N1million disbursed, government expected the creation of a minimum of five jobs around that business value chain, adding that these loans had been provided at a very affordable rate of five per cent per annum, making it far cheaper than the prevailing bank interest of 25 per cent per annum.

Ambode said he disbursement of the fund was government’s modest way of reflating the Lagos economy, creating jobs and getting the youths gainfully occupied, saying that this pilot scheme had selected beneficiaries from the 20 local governments and 37 local council development areas.

He said the scheme provided an opportunity for the fund to test its processes ahead of a full rollout next month, urging all Lagos residents, irrespective of their tribe, religion or gender “to apply for this scheme as it was meant for everybody.

“We are particularly interested in supporting women and I enjoin our market women, female artisans and SMEs owners to take advantage of this opportunity. I also implore the Employment Trust Fund to pay special attention to the entertainment industry and the Tech hubs in Sabo, Yaba area. These are new areas with huge potential for growth and job creation,” he said.

Ambode said his administration would continue to ensure that the process was transparent and unbiased as the ETF had engaged partners who had helped with the selection, verification and disbursement of the loans to beneficiaries.

He said the Board of the ETF had promised that it would support at least 100,000 micro, small and medium enterprises in due course, saying that he had full confidence in their ability to achieve this result, stressing that “we are starting that journey of supporting 100,000 businesses with the 705 beneficiaries here today.”

The Chairman of the Board of ETF, Ifueko Omogui-Okauru, noted that the board had the mandate to empower 100,000 SMEs between now and 2019 and that in undergoing this, the female gender was seriously put into consideration in the disbursement of the fund.

She said the board received applications from different scale of enterprises across the state and that transparency was ensured in the selecting process, adding that the board’s mandate was to cover the entire state and ensured that there was no discrimination of any form.

A beneficiary, Adetola Akintoye, Chief Executive Officer of Andy Clark Confections, a bakery outfit, said she got N5 million and that she would use it to expand her business, while thanking the governor for the gesture.