Sanwo-Olu injects fresh 100% fund into Lagos Employment Trust Fund

Governor Babajide Sanwo-Olu of Lagos State has injected fresh 100% funds into the Lagos State Employment Trust Fund (LSETF) to increase employment generation in the state.

The Lagos State Employment Trust Fund (LSETF) was established to provide financial support to business owners and entrepreneurs for wealth creation and to tackle unemployment in the state.

Governor Sanwo-Olu at the second edition of Lagos Employment Summit organised by LSETF, with the theme: “Sustainable Job Creation Strategies: Collective Action and Prosperity for All”, at Eko Hotels and Suites in Victoria Island, said he doubled the agency’s operational fund to further increase access to finance for budding entrepreneurs seeking to grow their businesses through soft loans and funding support.

Stakeholders in the employment generation community, including policymakers and implementation partners, at the two-day summit, deliberated on how to sustain job creation partnership and strategies towards enhancing viable pathways and transition from education to employment.

Sanwo-Olu emphasized that the incentive would further strengthen other State Government’s interventions initiated towards empowering and upskilling innovative young people, while providing support grants for established businesses. The Governor noted that the increased allocation will enable more entrepreneurs to be captured in grant allocations to Micro, Small and Medium Enterprises (MSMEs), thereby lowering unemployment figures of the State.

“We have seen that LSETF can work and indeed, it is working. We have seen the potential of the agency in sustaining creation of job opportunities for our teeming productive residents. I strongly believe that we can achieve a lot more in bringing down the unemployment rate in Lagos if we entrust the agency with a lot more capital grants to support businesses and innovative people.

“LSETF has the capacity and has demonstrated it in the last four years. Given the opportunity of increased funding, the agency can double the employment figures. It is only by scaling up the subvention that we can further demonstrate our readiness to reduce the rate of unemployment. I have asked for the agency’s budget size and I have seen what it is. This is a public pronouncement that we are doubling the subvention.

“We are doing this, because the LSEFT management team has given us practical proof of concept that the intervention can boost employment opportunities. In this regard, I make an appeal to our funding and development partners to also double their donations to the agency, because there are more people in the State to be taken out of poverty when they have access to business finance. This way, we would be empowering more people to create wealth and spread prosperity,” Sanwo-Olu highlighted.

The Governor noted that his administration, in the last three years disbursed over N10 billion in grant to strengthen LSEFT’s activities, supporting 34,000 MSMEs through the intervention.

The intervention, the Governor said, was instrumental to the 6.7 per cent drop in the unemployment rate, as recorded by the National Bureau of Statistics (NBS) before the disruption occasioned by the Coronavirus (COVID-19) pandemic.

Sanwo-Olu said that the agency needed to rejig its activities, with the aim to extend the financial assistance to more businesses in the State, stressing that COVID-19 could no longer be used as excuse for not assisting productive people in creating wealth through entrepreneurship.

According to the governor: “We cannot continue to give COVID-19 as an excuse, because the pandemic is behind us now. We need to think of approaches that will create opportunities for teeming number of our youths in the coming days. Young people are waiting on us and relying on us. It is one of our campaigns promises that, LSEFT would come out stronger and better under our leadership. I charge the Board of Trustees and the management team to take this opportunity to push LSEFT further to become a global brand that all of us can truly be proud of.”

The Governor promised to incorporate outcomes of the summit into the implementation of the State’s governing agenda.

Commissioner for Economic Planning and Budget, Sam Egube, estimated the unemployment rate in Lagos at 37.3 per cent, saying that the summit was organised to address employment levels in Lagos, by bridging the gap between job availability and employability in the labor market.