LAGOS, it intervention fund and you by Don Abiodun Odedeyi

Today, the protocol of writing formally went through the window before I open my computer

Introduction

The LSETF is the Lagos State Employment Trust Fund, a N25billion set aside simply for the growth of smes, creation of business, making dreams come true.

Why should I dwell on why Lagosians seems to miss out in benefits when we've not yet touched why you are here (How you can participate).

But really, where have you been before now… where have you been when others are already getting theirs? Anyway, let's skip that and go to the business of the day.

Screenshot of application page and requirement on lsetf web page

The LSETF is not for established businesses alone but also for business idea that need fund to become reality.  The bottom-line is simple – create/empower self-employed, sme so that they become companies that fend for themselves and employ people.

The fund will be equally disbursed to the 5 divisions of Lagos namely Ikorodu, Badagry, Ikeja, Lagos Island and Epe over a period of four years.

Though not consulted but the ripple effect of such fund, N25billion, injected into the system will greatly be felt in years to come.

According to it website
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The Lagos State Employment Trust Fund (“LSETF” or “the Fund”), was established by The Lagos State Employment Trust Fund Law 2016 to provide financial support to residents of Lagos State, for job, wealth creation and to tackle unemployment. LSETF serves as an instrument to inspire the creative and innovative energies of all Lagos residents and reduce unemployment across the State. The Fund has the mandate to directly invest N25Billion in helping Lagos residents grow and scale their Micro Small and Medium Enterprises (“MSMEs”) or acquire skills to get better jobs.

The Fund will deliver primarily through its partners and will leverage their experience & capabilities to achieve its goals.

LSETF will focus on promoting entrepreneurship by improving access to finance, strengthening the institutional capacity of MSMEs and formulating policies designed to improve the business environment in Lagos State.

The Fund expects to create 300,000 (Three Hundred Thousand) direct and 600,000 (Six Hundred Thousand) indirect jobs within three years, by supporting at least 100,000 (One Hundred Thousand) MSMEs. 

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Interest

At 5%pa, the state has demonstrated that it reason for such fund injection is not profit but aid. Many of our commercial institution today charges around this percentage for processing fee.

I have looked into the LSETF registration and it requirements and am yet to see any hidden charges aside this 5% on the amount you requested.

Participation

Let me use this opportunity to say that you need a lot of patience as the fund will not show in your account the next day after your registration. It take at least a month or a month and half from the day you complete your registration and the disbursement day.

Go to www.LSETF.ng and register with your phone number.

Note this, your phone number should be the one your bank knows, the one you register your BVN, LASRRA, Tax with.

The LSETF require your

• LASRRA registration ID
• BVN
• Tax ID (you can register at any LIRS office and use your newly given Tax ID)
• Approved form of Identification (International Passport, National ID, Permanent Voters' Card
• PHCN (NEPA) or LAWMA bill
• Guarantor(s) depending on the amount requested for (such guarantors also will present their Tax and other aforementioned documents)

Participation is in categories. Each category is different from the next on amount and the type of requirement. Individual can take as much as N1million depending on business, guarantor and some other criteria.

During one of his briefing, Lagos state Commissioner for Wealth creation and empowerment, Dr. Babatunde Durosinmi-Etti gave a testimony of a young photographer whose N700,000 request for the purchase of camera lens was approved. Today, the young man is greatly empowered and will not just be a blessing to himself but his family and the community.

What Verification officers are looking for:

Established business

1. Cash flow: they want to see if your business is really worth investing in. how much your daily sales is, where you buy your goods and how much you take to the market compare with total sales and the difference.

2. Business sighting: are you selling anything at all or you just want to get your own share of the national or state cake.

3. Business Worth: Cases like an Indomie/egg seller whose total goods is not up to N15,000 requesting for N500,000 or a local cloth washer whose bed and room were given to her by a good Samaritan requesting for N500,000 are just few of what verification dig up.

These cases, I wonder, how they get to register as well as get a guarantor who stood for them that such huge amount will be repaid by someone whose monthly income is not up to N10,000.

The essence of valuation of business is to help you to determine if such fund interpret to growth for your business or trouble.

In summary, if you are already in business, keep your record intact, save invoices, have a good explanation for what you want to use the fund for.

Marry your income with how repayment will be done and don't try to lie, verification officers have been in the business of giving out loan for some time and they know when fund will come back or not. Most times, they are helpful with a tip or two.

NEW IDEA THAT WILL BECOME BUSINESS

• Have a proposal or write-up clearly stating your intention
• Of course, you must be knowledgeable in the business you are about embarking on
• Wow the verification officers with your own preparations
• Things like market source or customers and how to get them, SWOT analysis, winning market strategies must have been in place and don't try to hide it. 
• Verification officers are not business men and women; they can't steal your idea.

GENERALLY

Don't think if you have a pending debt or loan with a financial institution, the LSETF will become your other loan. Credit check will be conduction and you will be disqualify if found to be servicing a loan. Kindly close your current loan(s) and enjoy the very loan interest from your government.

Achievement

The LSETF alone will achieve, among others, increase in tax payers. Whoever sat down to design the procedure and everything around the LSETF need a national honour.

With Tax ID as part of the requirement for qualification, this singular project will give birth to billions in tax payment annually for the Lagos state government.

I know we all are smart and many will be like, "that's if I visit the LIRS to pay my tax".

The CBN mandated all financial institutions to sign in to two of the nation's three credit bureaus, the BVN which links all your accounts are working as one. Efforts is still ongoing to make it possible that if you want to do or achieve something a single check using your BVN will report if you are eligible or not thus a tax defaulter may be denied loan anywhere or a loan defaulter may get all his account pnd until such obligations are fulfilled.

Action Plan 

The Lagos State Employment Trust Fund in partnership with the Ministry of Wealth Creation & Employment plans to bridge the skill gap among unemployed Lagos Sate residents to enable youth take up existing jobs in various sectors of the economy. To this end, lsetf  is also providing different employability training. 

If you are unemployed, underemployed or need to acquire skills for better job placement, fill their application form by clicking the “Apply Now” button (link below) and you will be contacted.

http://employability.lsetf.ng/

 

Finally

Oh! It's a loan with so low interest doesn't mean you can take a huge obligation on yourself. Remember, someone will guarantee you and if you are not able to pay, the responsibility will be pass on to the person that stand for you.

If is also wise to bite what you can chew, money is sweet to collect but bitter to pay back.

Some of the profitable businesses, ventures you can invest in are on this website. You can take your time and read through.

We wish you all the best. Don't hesitate to contact us via the channels listed below...

Don Odedeyi Abiodun 

Twitter: @donabiodun

Email: abiodunodedeyi@gmail.com