The Chairman of Agege Local Government Area, Abdulganiyu Obasa, in collaboration with the Lagos State Employment Trust Fund, on Thursday launched a loan scheme designed to support small businesses and alleviate poverty in the community.
Obasa said the initiative will offer loans of up to N1m at a nine per cent annual interest rate, aimed at startups and existing small businesses within the council area.
Providing details on beneficiaries, Obasa disclosed that 10 applicants had already received N500,000 each, while about 25 others were still under review.
According to him, over 130 people applied for the scheme, with about 52 applications rejected due to poor credit history.
He said, “We are here for the launch of a programme between Agege Local Government and the Lagos State Employment Trust Fund. It is designed to give loans and support small businesses within our community, lift people out of poverty and help startups grow.
“There is a process handled by LSETF. We are not directly involved in the loan approval.
Some applicants were declined because of bad credit, but that is something they can improve over time.”
On monitoring and repayment, Obasa noted that the fund will provide guidance and ensure beneficiaries utilise the loans appropriately while facilitating repayment.
“The Lagos State Employment Trust Fund does the hand-holding throughout the process, ensuring that beneficiaries use the funds for their businesses and begin repayment as scheduled,” he said.
He added that the initiative will be rolled out in phases, stressing that more beneficiaries would emerge as the programme progresses.
The chairman also disclosed that the council had upgraded several skill acquisition centres across sectors such as fashion, beauty, leather works, technology, photography, phone and gadget repairs, as well as drone operations.
He emphasised the need to equip youths with vocational skills, noting that white-collar jobs were no longer sufficient to absorb the growing population.
Speaking at the event, the Commissioner for Youth and Social Development, Mobolaji Ogunlende, described the programme as a model that should be replicated across other local governments in the state.
He noted that youths constitute about 60 per cent of Lagos’ population, stressing the need to provide alternatives to unemployment through skills and enterprise development.
He said, “This is a template that can be replicated across all 57 local governments and LCDAs. It will help the government, the people and the youth, as more individuals will have productive engagements.
“This programme provides an opportunity for youths to be engaged and learn skills. Instead of staying idle, they should utilise these centres and say no to drugs.”
Also speaking, the Executive Secretary of LSETF, Feyisayo Alayande, said the collaboration was designed to go beyond grants by equipping beneficiaries with business knowledge and growth strategies.
He explained that about 200 small businesses initially enrolled in a four-week training programme covering financial literacy, business structuring and digital marketing, with 130 participants successfully graduating.
“The chairman was very intentional about creating opportunities for businesses to learn, grow and scale. This collaboration is about building capacity and ensuring sustainability for nano, micro and small businesses,” Alayande said.
Beneficiaries who spoke during the event lauded the council chairman for the initiative while expressing readiness to make judicious use of what they have learnt as well as the loans provided.