Lagos State Announces N5 Million Loans for Business Owners: Eligibility, How To Apply

• The Lagos State Employment Trust Fund offers loans ranging from N50,000 to N5 million to small and medium-sized businesses
• The fund has three loan categories targeting start-ups, microbusinesses and established SMEs, with different repayment periods
• Applicants must meet several conditions, including CAC registration, a valid BVN, LASRRA identification and at least one year of business operations

Small business owners in Lagos State can apply for government-backed loans of up to N5 million through the Lagos State Employment Trust Fund (LSETF), under a financing programme designed to help entrepreneurs start, sustain or expand their businesses.

The LSETF MSME Loan Programme offers three funding categories based on the size and operational history of a business.

The Micro Enterprise Start-up Loan provides between N50,000 and N250,000, repayable within 12 months.

The Micro Enterprise Loan offers between N50,000 and N500,000, also with a 12-month repayment period.

The Small and Medium Enterprise (SME) Loan, the largest category, provides between N500,000 and N5 million, with a repayment period of 24 to 36 months, MSME reports.

According to information on the LSETF website, the SME facility targets established businesses seeking funds for working capital, equipment purchases and expansion.

All applicants are required to contribute 5% of the requested loan amount as equity before accessing the facility.

Who can apply for the Lagos loan

To qualify for the SME category, business owners must operate in Lagos State and have run their businesses for at least one year.

They must also have valid Corporate Affairs Commission (CAC) registration, a Lagos State Residents Registration Agency (LASRRA) identification number, a Lagos State Internal Revenue Service (LIRS) Tax Identification Number and a Bank Verification Number (BVN).

Other requirements include a government-issued identification document, a corporate bank account with six months of statements and two guarantors who are not direct relatives of the applicant.

Meeting the requirements does not guarantee approval, as applications are subject to assessment and verification.

Documents and how to apply

Business owners can submit applications through the official LSETF loan portal.

The application process involves the following steps:

1. Visit the official portal at https://loans.lsetf.ng/.
2. Select the appropriate loan category.
3. Create an account or log in.
4. Complete the application form with personal and business information.
5. Provide details of the amount required and intended use.
6. Upload the requested documents.
7. Submit the application for assessment.

Applicants can also visit the LSETF website at https://lsetf.ng/content/msme-loan-programme to review the programme requirements.

Link to apply.

Loan repayment

On interest rates, the LSETF's main programme page lists 9% per annum, while the portal's frequently asked questions section states 5% per annum.

Prospective applicants are advised to contact the fund directly to confirm the applicable interest rate and any additional charges before accepting a loan offer.

The LSETF is located at 16 Billings Way, Oregun, Ikeja, Lagos. Business owners can contact the agency on 02017000945 or email info@lsetf.ng for further information.

N100m funding for Nigerian entrepreneurs

Earlier, Legit.ng reported that the Federal Government, through the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has unveiled plans to produce 100 millionaire entrepreneurs through a ₦100 million funding initiative designed to support small businesses nationwide.

The initiative, which forms part of the GROW Nigerian Conference 2026, will combine financial grants, business training and market access opportunities to help entrepreneurs build profitable and sustainable enterprises.

The three-day conference, scheduled for November 8 to 10 in Lagos.

Source: Legit.ng