TheCable

The government of Lagos says it has launched a N5 billion intervention programme to support businesses affected by the COVID-19 pandemic in the state. 

According to a statement, the programme, “Lagos Economic Acceleration Programme (LSETF-LEAP)”, is put together through the Lagos State Employment Trust Fund (LSETF) to help businesses in the state “recover, save and create more jobs in the wake of the COVID-19 pandemic”.

The programme, which is a sector-specific intervention initiative will support businesses severely affected by the pandemic by providing access to affordable finance at a single-digit interest rate, enhance capacity building, access to market linkages and leverage business expansion opportunities for the beneficiaries.

Speaking at the launch of the initiative on Monday, Teju Abisoye, executive secretary/CEO of LSETF, said micro, small, and medium enterprises (MSMEs) play a significant role in the recovery of every economy and should be supported.

“Without any inkling of doubt, MSMEs are central to the economic growth of any country. Hence, they will be instrumental to the economic recovery efforts following the COVID 19 epidemic, within the Lagos economy”, she said.

“The Nigerian Bureau of Statistics (NBS)-SMEDAN National Survey Report for 2017 shows that the Nigeria MSMEs contributes about 49.78% of the nation’s GDP and about 76.5% of employment for the labour force. The Q2 report on employment by the NBS also revealed that the unemployment rate increased from 23.1% (Q3 2018) to 27.1% Q2, 2020.

“A Post Covid Lockdown Report on the Effect of the Pandemic on MSMEs by FATE Foundation showed that almost 95% of MSMEs were severely affected by the restriction of movement and about 82% of these businesses are most likely to lay off staff.

“These data are not only alarming but stir an urgency for the implementation of sustainable solutions to help minimise the economic damage on small businesses. The unveiling of the LSETF-LEAP seeks to revise this paradigm by transforming Lagos entrepreneurs from pandemic to prosperity with an emphasis on employment protection and job creation.

“With Lagos State currently contributing over 30 per cent of the national GDP, we must take the lead in reversing a national economic emergency. We are optimistic that these recovery programmes will not only produce accelerated outcomes but also play significant roles in creating jobs, and thus, actualising our government’s quest towards ‘Rebuilding Lagos.”

The sectors identified as the beneficiaries of the programme include education, technology, transport and logistics, healthcare, renewable energy and agriculture, hospitality, tourism, creative and entertainment.

The sectors are considered by LSETF to have suffered a downturn that requires intervention that seeks to protect employment previously created in businesses in the sector.