Lagos State Employment Trust Fund (LSETF)

Creating employment and entrepreneurship opportunities for all Lagos State residents

Towards a Solution

LSETF Strategic Goals:

• Create 400,000 new jobs by 2019
• Add 150,000 new taxpayers to the tax bracket by 2019.
• Support 100,000 businesses by 2019
• Achieve sustainable funding by ensuring at least 50% non-Lagos State funding.

LSETF Model: To achieve its goals, LSETF has developed programmes, to tackle unemployment and drive innovation in the state;

• MSME Loan Programmes: We aim to promote entrepreneurship in Lagos State by improving access to finance and strengthening the institutional capacity of MSMEs. The loan scheme, which attracts only 5% interest rate per annum, is available to business owners who are registered residents of Lagos State. 
• LSETF Employability Support Project: The LSETF Employability Support Project, is designed to help tackle the unemployment scourge among the youths by helping them gain requisite knowledge and skill through vocational trainings and subsequently helping them get job placements. It aims to train 10,000 young people to gain skills in 6 sectors namely – Manufacturing, Hospitality, Entertainment, Construction, Health and Garment Making that will help place them in line for immediate employment.
• Lagos Innovates: Lagos Innovates, is a series of programs designed for the benefit of technology- and innovation-driven startups in Lagos State. By providing access to high quality infrastructure, learning, capital and networks, Lagos Innovates hopes to cement Lagos’ position as the leading destination for startups in Africa

LSETF Achievements:

• MSME Loan Programmes: 11,027 businesses funded to the tune of 7.20billion naira
• LSETF Employability Support Project: Trained 5,403 beneficiaries and placed 2,587 in jobs.
• Lagos Innovates: Issued 97 workspace to startup businesses in the tech space.
• Created over 97,000 new jobs and added over 48,000 new taxpayers to the bracket.

Impact assessment report:

• 9 in 10 Beneficiaries supported by the LSETF recorded increased capital since receiving training/funding.
• 72% of small business owners who benefited from the LSETF loans reported a positive impact on their business growth and personal life
• 70% of the beneficiaries hired at least one person.
• Female beneficiaries were able to support an average of 5 dependents each, while their male counterparts support an average of 4. This means that about 8,000 loan beneficiaries have directly supported at least 40,000 dependents.
• After accessing the workspace voucher, 76% of beneficiaries believe they are ready to pitch their product to investors. 18% believe they have excellent chances of investor funding to marketing of their innovations.

Steps Taken Towards Sustainability:

• Partnerships with International development organizations like UNDP, GIZ and USADF for employability programmes.
• Partnerships with financial institutions, to provide matching funds for MSME loans.