Relief for MSMEs as LSETF rolls out N5bn prosperity fund

The Lagos State Employment Trust Fund (LSETF), in its aim to provide support for businesses in the micro, small and medium-sized enterprises (MSMEs) space, has launched a N5 billion post-coronavirus fund under a sector-specific economic recovery support programme tagged ‘the Lagos Economic Acceleration Program (LEAP).’

At the launch, Teju Abisoye , executive sectary LSETF, said the LSETF-LEAP was aimed at helping MSMEs classified as the most affected by the pandemic to recover and revive their businesses. According to her, the fund was meant to save them from collapsing and create new opportunities, stressing that there was a major focus on service providers, including players in the hospitality and tourism, education, entertainment, agriculture and renewable energy sectors.

Speaking with BusinessDay, Abisoye said over N1.5 billion had been received for the programme, while the interest rate and tenors depended on the size of loan and the sector.

“The interest rate options are a maximum of 10 percent, nine percent and a minimum of five percent for all the programmes, while the tenor has a maximum of 36 months,” she said.

“We are optimistic that these recovery programs will not only produce accelerated outcomes, but will also play significant roles in creating jobs and thus actualising our government’s quest towards rebuilding Lagos,” she further said.

Abisoye noted that a post-pandemic lockdown report on the ‘Effect of the Pandemic on MSMEs’ by FATE Foundation showed that almost 95 percent of MSMEs were severely affected by the restriction of movement and about 82 percent of these businesses were most likely to lay off between one to five staff members.

Consequently, she said the intervention fund sought to help businesses transform the impact of the pandemic into prosperity with emphasis on employment protection and job creation. She added that players in the tourism and hospitality space must, however, register with the Ministry of Tourism in Lagos before accessing the loans.

Abisoye revealed that in supporting the mandate of the LSETF, the state government increased the budget of the LSETF from N3 billion to N4.8billion despite slashing budgets across other ministries and departments.

Speaking on the N5 billion LSETF-First Edu-Loan, a post-COVID-19 recovery support for the educational sector launched in September in partnership with First Bank of Nigeria Limited, she said the first batch of 100 applications were being assessed after which beneficiaries would be interviewed before disbursing the funds. She noted that 200 applications had been so far.