The Lagos State Employment Trust Fund has disbursed more than ₦15bn to over 20,000 micro, small and medium enterprises, contributing to the creation of more than 320,000 jobs across the state.
The development was disclosed by the Lagos State Commissioner for Innovation, Science and Technology, Olatunbosun Alake, during the Lagos Innovates LaunchPad 2.0 Idea Hub Pitch Day and Ecosystem Showcase.
The event, held on Thursday, formed part of activities marking the 10th anniversary of the Lagos State Employment Trust Fund.
The announcement highlights the state government’s continued efforts to support entrepreneurship, improve access to finance and expand employment opportunities through small businesses.
Micro, small and medium enterprises play an important role in Nigeria’s economy because they provide goods and services, create employment and support economic activities across different communities.
In Lagos, where commercial activities attract entrepreneurs from across the country, access to finance remains an important requirement for business development.
Financial Support for More Than 20,000 Businesses
According to Alake, the LSETF has provided more than ₦15bn in financial support to over 20,000 small businesses.
He explained that the interventions had contributed to the creation of more than 320,000 jobs.
The commissioner described small businesses as important contributors to economic development and employment generation.
He noted that access to funding, appropriate infrastructure and business management knowledge could help entrepreneurs expand their operations.
The fund’s reported loan repayment rate has also exceeded 94 per cent, which Alake described as evidence of the importance of structured financial support.
A strong repayment record is relevant to the sustainability of business financing programmes because recovered funds can potentially be made available to other eligible entrepreneurs.
However, business owners also require additional support beyond loans to remain competitive and profitable.
Lagos Innovates Supports Emerging Entrepreneurs
The event also featured the graduation of 50 founders from the 14th cohort of the Lagos Innovates Idea Hub programme.
The initiative supports early-stage entrepreneurs by helping them develop business ideas and establish viable business models.
Through training, guidance and access to business development resources, the programme aims to prepare entrepreneurs for the challenges of operating sustainable businesses.
The Executive Secretary of LSETF, Feyishayo Alayande, said the fund had empowered approximately 100,000 businesses through different interventions.
These included masterclasses, advisory services and business registration support.
She explained that access to finance alone was not sufficient to guarantee business success.
According to her, entrepreneurs also require mentorship, market access, relevant knowledge and proper business structures.
Her comments highlight the need for a broader approach to entrepreneurship development.
A business may receive funding but still struggle if its owner lacks the necessary skills to manage operations, understand customers or compete effectively.
Lagos Plans More Support for Women and Youth Entrepreneurs
Alake also disclosed that the Lagos State Government was developing an innovation bill that would reserve 20 per cent of innovation grants for women- and youth-led enterprises.
The proposed measure is intended to strengthen participation in the state’s innovation and startup ecosystem.
Women and young people are important participants in entrepreneurship, but access to capital and business opportunities can remain challenging.
A dedicated allocation of innovation grants could help improve their participation if implemented through transparent and accessible procedures.
The commissioner also stated that Lagos-based startups attracted more than $6bn in investments between 2019 and 2024.
According to him, this represented approximately 70 per cent of technology investments in Nigeria during the period.
He added that Lagos Innovates had supported more than 1,200 startups and developed over 3,300 technology talents.
The Lagos State Science, Research and Innovation Council had also awarded nearly ₦1bn to 155 researchers and startups.
Importance of MSMEs to Economic Growth
Small businesses contribute to economic development by creating jobs, expanding local production and supporting commercial activities.
They also provide opportunities for individuals who may not have access to formal employment.
However, entrepreneurs frequently face challenges involving funding, high operating costs, infrastructure and access to customers.
Programmes such as those operated by LSETF are designed to address some of these challenges.
For the programmes to achieve lasting results, financial assistance must be accompanied by effective monitoring, training and business development support.
The latest figures announced by the Lagos Government provide an indication of the scale of the fund’s interventions.
As the LSETF marks its tenth anniversary, the focus will remain on ensuring that its programmes continue to support businesses and create sustainable employment opportunities.
