LSETF disburses N15bn to MSMEs

Lagos State Commissioner for Innovation, Science, and Technology, Mr Olatunbosun Alake. Photo credit: Nairametrics

The Lagos State Employment Trust Fund has disbursed more than N15bn to over 20,000 Micro, Small and Medium Enterprises, contributing to the creation of more than 320,000 jobs, as the Lagos State Government intensifies efforts to promote entrepreneurship and expand economic opportunities.

The Commissioner for Innovation, Science and Technology, Olatunbosun Alake, disclosed this at the Lagos Innovates LaunchPad 2.0 Idea Hub Pitch Day and Ecosystem Showcase, held as part of activities marking LSETF’s 10th anniversary on Thursday.

The event also featured the graduation of 50 founders from the 14th cohort of the Lagos Innovates Idea Hub programme, which helps early-stage entrepreneurs refine their ideas and develop viable business models.

While highlighting the contributions of the Lagos State Employment Trust Fund to enterprise development, he said that, “LSETF had had disbursed more than N15bn to over 20,000 small businesses, contributing to the creation of more than 320,000 jobs.”

Alake said the Fund’s interventions, supported by programmes such as Lagos Innovates, were helping entrepreneurs develop viable businesses, create jobs and contribute to the state’s economic growth.

He noted that LSETF had recorded a loan repayment rate exceeding 94 per cent, describing it as an indication of the importance of structured support for small businesses.

“Small businesses are critical to economic growth and job creation. When entrepreneurs have access to finance, the right infrastructure and the knowledge to manage their businesses, they are better positioned to grow, employ more people and contribute to the economy,” he said.

The commissioner also disclosed that the state was developing an innovation bill that would reserve 20 per cent of innovation grants for women- and youth-led enterprises, as part of plans to strengthen the startup ecosystem and double the contribution of technology and innovation to Lagos’ economy by 2030.

According to him, Lagos-based startups attracted more than $6bn in investment between 2019 and 2024, representing approximately 70 per cent of technology investments in Nigeria during the period.

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He added that Lagos Innovates had supported more than 1,200 startups and developed over 3,300 technology talents, while the Lagos State Science, Research and Innovation Council had awarded nearly N1bn to 155 researchers and startups.

Alake urged entrepreneurs to focus on solving real-life problems and understanding customer needs, stressing that sustainable businesses must offer solutions people are willing to pay for.

Earlier, the Executive Secretary of LSETF, Feyishayo Alayande, said the Fund had empowered approximately 100,000 businesses through interventions including masterclasses, advisory services and business registration support.

She emphasised that business growth required more than access to finance, noting that mentorship, capacity building, market access and sound business structures were equally important.

“Finance is important, but it is not enough on its own. Entrepreneurs need the knowledge to manage their businesses, access to markets and the right guidance to build enterprises that can survive, grow and create jobs,” Alayande said.

She reaffirmed the Fund’s commitment to equipping entrepreneurs with the skills, resources and support needed to build sustainable businesses.

Also speaking, the Chairperson of the Lagos State House of Assembly Committee on Wealth Creation and Employment, Foluke Stella, called for stronger entrepreneurship policies and expanded business support services to help young people translate innovative ideas into viable enterprises.

She said access to mentorship, relevant skills and funding would enable more entrepreneurs to contribute meaningfully to the state’s economic development.