Lagos State Disburses N1.17 Billion In Loans To 4,600 MSMEs, Reports 91% Repayment Rate
- In a move to boost job creation, the Lagos State Employment Trust Fund has renewed the MOU with the USAID to train 10,000 Lagos residents
- The government has also disbursed loans to 4,600 MSMEs through the agency in the last year
- These steps are expected to reduce unemployment in the state and connect idle Lagosians with gainful employment
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Lagos state government is leaving no stone unturned in the drive to reduce unemployment in the state.
The state has disbursed loans to 4600 Micro, Small and Medium Enterprises (MSMEs) within the last year.
The loans disbursed by the Lagos State Employment Trust Fund (LSETF) in 2024 amounted to N1.17 billion.
Source: Getty Images
The Honourable Commissioner for Wealth Creation and Employment, Mr. Akinyemi Ajigbotafe, confirmed that the repayment rate has been as high as 91% in the last year.
Speaking at the Ministerial Press Briefing held at the Bagauda Kaltho Press Centre to commemorate the sixth anniversary of Governor Babajide Sanwo-Olu's Administration in Lagos State, Ajigbotafe noted that this is a major boost to commercial activities in the state.
Lagos state partners USAID to train 10,000 youths
Ajigbotafe stated that the LSETF has also provided 82 small businesses with access to market opportunities in the state, while also training and securing employment for 6, 685 residents through its programmes.
Another ₦558.56 million was disbursed as grants to support some Lagos-based businesses.
He added that the LSETF has also renewed the Memorandum of Understanding (MoU) with the United States African Development Foundation (USADF) to train 10,000 Lagosians.
At the end of the training, at least 60% of the participants will be placed into gainful employment.
Lagos state disburses N1.17 billion to 4600 MSMEs
Providing more details into the loans, the Executive Secretary of LSETF, Feyisayo Alayande stated that by providing finances for the MSMEs, the agency had helped create 48,830 direct and indirect jobs within the year, while also assisting to retain 34,542 existing jobs.
Several of the beneficiaries have gone beyond self-employment to employ others, thus reducing unemployment in Lagos state.
She added that the agency is also following up closely with the remaining beneficiaries to secure payments on the remaining 9%.
Alayande called on those facing business challenges to engage with the LSETF ahead of their loan deadline to prevent enforcement actions.
Lagos state partners Opay, Cowrywise to empower women
Legit.ng earlier reported that the Lagos state government entered a partnership to promote financial inclusion and empowerment for women across Lagos.
Since its conception last year, the programme has reached 12 communities in hard-to-reach areas and riverine communities in Lagos.
Source: Getty Images
This move by the government is in furtherance of the Lagos state THEMES + agenda to empower women.
It also furthers the agenda of the Bank of Industry (BOI) in providing targeted loans for women.
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In related news, Legit.ng reported that the federal government received over 60,000 applications for the 2025 MSME awards.
Winners of the award will go home with about N700 million worth of prizes, including cars, shops and houses.
For the 2025 edition, a new category has been added for people living with disabilities.
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Source: Legit.ng
