The Lagos State Employment Trust Fund (LSETF) has placed a suspension on repayment of the loans by the beneficiary enterprises as part of its effort to relieve the financial burden on 11,000 Micro, Small and Medium Enterprises (MSMEs) and technology starts-ups in the state.
The Acting Executive Secretary of the Fund, Teju Abisoye, who made this disclosure in Lagos, described the moratorium as part of the relief measures by the state government to assist SMEs amidst the shutdown occasioned by the COVID-19 pandemic.
The LSETF boss specifically noted that the pandemic had adversely affected trade and other business activities globally; resulting in SMEs and larger corporations seeking suspension of their loans repayment and as such the gesture will help keep the struggling SMEs in business and serve as a spark of optimism in anticipation of a quick return to normalcy and business continuity.
She explained that Some SMEs had obtained loans from LSETF for their business growth, prior to the coronavirus outbreak. However, trade has been stagnant, so the moratorium is part of the relief measure by the state government to assist SMEs amidst the shutdown. We are passionate and committed to enabling every productive resident in Lagos to dream, grow and succeed in their endeavours.
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“We are keen to helping them get access to affordable financial and other institutional support needed 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.
“We understand that to do this, we must engender an enabling environment for small businesses to operate and thrive. In recognition of the difficulty that businesses may encounter this period, we understand that many of them will not be able to meet their loan repayment obligations,” she said.
The LSETF has also suspended the ‘Lagos Innovates Workspace Vouchers Programme’, which was designed to support and facilitate access to well-equipped workspaces and learning for potential innovators and founders of start-ups in the Lagos tech ecosystem. The programme was suspended for a month as a result of the lockdown by the government.
