The Lagos State Employment Trust Fund (LSETF) has announced a moratorium on loan repayments for beneficiaries of its Loan and Hub Financing Programmes designed for micro, small and medium enterprises (MSMEs) and technology start-ups in the state.
This is targeted as cushioning the socio-economic impact of the outbreak of the coronavirus (COVID-19) pandemic in Nigeria,
The relief and palliative measure, which target over 11,000 MSMEs in the Programme, takes into cognisance the impact of the shutdown on businesses. The shut-down is in compliance with the social distancing directives by the state and federal governments in the effort to tackle the pandemic and prevent the chain of transmission from person-to-person.
Also, in compliance with the social distancing directives and the consequential cessation of all movement in the state, LSETF will be suspending for a month, its ‘Lagos Innovates Workspace Vouchers Program,’ aimed at supporting and facilitating access to well-equipped workspaces and learnings for potential innovators and founders of start-ups in the Lagos tech ecosystem.
Speaking on the palliative measures, Teju Abisoye, acting executive secretary, LSETF, said the agency was passionate and committed to enabling every productive resident in Lagos to dream, grow and succeed in their endeavors.
“We are keen to help them get access to affordable financial and other institutional support they need to create wealth and employment for our youth, while significantly contributing to building a 21st century economy for Lagos in alignment with the state government’s THEMES agenda,” she said.
“We understand that to do this, we must engender an enabling environment for small businesses to operate and thrive,” she further said.
Abisoye noted the LSETF was aware that many of the beneficiaries might not be able to meet their loan repayment obligations as a resultof the ongoing difficulties caused by Covid-19.
“Therefore, we hope this announcement will serve as a spark of optimism in anticipation of a quick return to normalcy and business continuity. We also urge them to adhere strictly to the recommendations of the World Health Organisation (WHO) and the relevant health authorities in Nigeria as we all work together to end this pandemic,” she said.
This palliative measure is open to performing loan beneficiaries and those with past-due obligations of not more than 60 days. Also, the applicants must complete a loan repayment moratorium form ahead of securing a written acceptance of the approved loan moratorium, LSETF said.
