How to Benefit from the The Lagos State Employment Trust Fund - Hon. MOGAJI SAMSONDEEN BABATUNDE

The Lagos State Employment Trust Fund (LSETF) is a N25 billion fund to power your SME, and improve your skills. With the funds, the Lagos State Government promises is to help Lagosians create the most thriving SME economy in Africa.

The LSETF will directly invest N25 billion in helping Lagos residents grow and scale their SMEs, or acquire skills to get better jobs. 

The Lagos State N25 billion Employment Trust Fund, will facilitate access to funding, for over 100,000 entrepreneurs in the state. However, training the entrepreneurs is an important part of the process.

To shed more light on the LSETF, Hon. Shamsudeen Babatunde Mogaji - Personal Assistant on New Media To Hon. Commissioner For Youth and Social Development, Pharm(Mrs) Uzamat Akinbile-Yussuf joined curious youths on the WhatsApp Social Media Platform of the Lagos State Community Youth Volunteers (LSCYV) - Badagry Division, to give more insights on the LSETF scheme.

Below is the information he shared with youths on the platform.

Good evening the honourable members of the great house, As earlier introduced above - I am MOGAJI  SAMSONDEEN  BABATUNDE, Personal Assistant on New Media To Hon. Commissioner For Youth and Social Development Pharm(Mrs) Uzamat Akinbile-Yussuf.

I work with The Lagos State Employment Trust Fund as Liaison Officer for Alimosho LG. We had this similar session on Ikeja Division WhatsApp platform yesterday and I hoped it was informative, educative and needful. 

First and foremost, there is need to introduce LSETF to the house The  Lagos State Employment Trust Fund is the  financial support for entrepreneurs and creation of job opportunities for All residents of Lagos State. It is worthy to note that there is no discrimination about this scheme as Governor Akinwunmi AMBODE is running an all- inclusive government in the state. This was informed by the promise made by the Governor, Akinwunmi AMBODE out of magnanimity during his electioneering campaign to earmark a whopping 25 billion to be invested into the state economy through entrepreneurship and creation of job opportunities for all residents in the state. 

The scheme is aimed at drastically reducing unemployment menace  and giving financial muscle to entrepreneurs in the state. So by 2019, over 900,000 jobs ought to have been created either directly or indirectly. 

Now, topic of the day, how to benefit from this loan scheme                        

The scheme is categorised into 3 platforms for now, namely, ME, SME and EMPLOYABILITY                        

Micro Enterprise (ME) and Small and Medium Enterprise (SME)

An ME applicant can have access to a loan between N50,000 and N500,000 while SME goes from N501,000 to N5,000,000. Fortunately, both have 5% interest rate P.A. A prospective beneficiary of ME must produce the following documents

1. Means of Identification (and this could be) 

• Valid ID card: Voters' card, Driver's License, International passport, National ID card, or LASRRA ID

2. TAX IDENTIFICATION NUMBER (TIN)

3. ONE GUARANTOR

4. TWO PASSPORT PHOTOGRAPHS DULY SIGNED AT THE BACK 

                       

And for the SME

1. Means of Identification (and this could be) 

• Valid ID card: Voters' card, Driver's License, International passport, National ID card, or  LASRRA ID

2. TAX IDENTIFICATION NUMBER (TIN)

3. Company Tax Identification Number 

4. Certificate of Business Registration from Corporate Affairs Commission (CAC) 

5. TWO GUARANTORS

6. TWO PASSPORT PHOTOGRAPHS DULY SIGNED AT THE BACK

7. STATEMENT OF ACCOUNT(S)

And for the guarantors, 

They must provide their STATEMENT OF ACCOUNT, LASRRA AND VALID MEANS OF IDENTIFICATION                        

Now, how do you get the LSETF FORM?

Download forms from LSETF website www.lsetf.ng Fill and submit Completed forms to Liaison Office (16, Billings way, Oregun, Ikeja or visit any of 20 Local Governments across the state).

N:B: If you are applying for ME, download the corresponded form on the website and if for SME only download a corresponded form too. Equally download Guarantor form.

Importantly, the business you are investing in must be in existence for at least a year and the business must be your means of livelihood.

If you are yet to have a LASRRA ID or TIN, no problem about this. Kindly visit LASRRA office and LIRS office to get yours.

5% interest on loan account for  ME  is  12 months and repayment starts after one month of receiving the loan while SME has a grace of 3 months to start paying back and for 36 months.

                      

The duration of processing the loan is between 2 weeks and One Month and you will receive an SMS message from our office if you qualify for the loan.

For your information, Liaison Officers have been deployed to all 20 Local Governments across the state to attend to you.

On EMPLOYABILITY, simply visit www.lsetf.ng/employability. to fill out the form, upload your CV and submit electronically.                        

Equally await response from the LSETF                        

Thank you for your attention!

 Itesiwaju Ipinle Eko lojewalogun.

Questions asked on the platform.

1. Is there a reason why repayment period for ME differs from SME?
2. Thanks for the enlightenment. By 5% for 12 months do you mean the loan is expected to be fully paid with interest after 12 months?
3. Is the 5% interest rate on the lump sum or on reducing balance?
4. You are yet to say anything on d 3rd category the one you called employ-ability, what is it about?
5. All form of business can access the loan . Transport and entertainment?
6. Is it allowed 2 participate in 2 of d scheme at the same time e.g. ME and employability?
7. If we are granted the loan.when are we to start remitting back. How many month(s) after collecting the loan?
8. In terms of d vocation, will you be taught/trained?
9. I am into transportation business, how can I access loan to get a bus?
10. What if the business doesn't have CAC registration?

Answers

1. It is simply because money involved is not same. SME loan applicant giving a grace to establish himself probably wants to get some machines and equipment needed for the job. At least, after the three months, all things supposed to have been equal. Fill the form, attach all the necessary requirements and submit to liaison officers in a nearby local government around you. More so, make two copies of all the documents, submit one with them and keep one for yourself as reference if need be. This is an open door process which is devoid of fraud or manipulation.
2. Correct.
3. Lump sum.
4. It is a compilation of all unemployed in the state. The state govt will seek for job for them. And for those who choose artisanship, they will be given opportunity to work with reputable firms in the state. Vocations such as cosmetology, bead making, catering etc are available.
5. Yes as all is invited.
6. Yes! you can but don't apply for SME and ME simultaneously.
7. I have said this earlier. ME is following month while SME is three months after.
8. Yes. All successful candidates will further undertake training course.
9. Your business must be in existence at least for a year.
10. Go and do the registration at CAC.