Lagos Assembly passes regulations for N25b Employment Trust Fund

The Lagos State House of Assembly on Tuesday passed the Regulations on the Administration of the Lagos State Employment Trust Fund guidelines for the disbursement of N25 billion meant to empower entrepreneurs.
The regulation was passed by the House following the presentation and adoption of a report by the Chairman House Committee on Wealth Creation and Employment, Sola Giwa.
The Assembly adopted the recommendations of the committee as its resolutions, stipulating five per cent annual interest from each qualified applicant.
The Speaker of the House, Mudashiru Obasa, directed the acting Clerk of the House, Sanni Azeez, to communicate the resolution of the House to Governor Akinwunmi Ambode.
Giwa told newsmen after the plenary that Governor Ambode was poised to fulfil his promise to reduce unemployment among residents.
According to him, such determination necessitates the passage of the Regulation on the running of the loans to be disbursed.
Giwa said: “The governor had promised to bridge the unemployment gap through provision of soft loan and we need to guide the process of operations for all eligible residents to benefit.’’
“This fund is a pool of resources from tax payers’ money. It is done so that the current challenges of not having white collar jobs will be addressed.
“It is not free money. The state is giving it out to help artisans, young entrepreneurs and businesses.”
The lawmaker urged would-be beneficiaries to pay back whatever amount they collected in order not to block the chances of others.
Giwa further stated that the disbursement of the fund would be done on the basis of merit, adding that it would be made available to genuine residents in the state irrespective of political or tribal inclinations.
The Regulation under section 12 which stated the conditions for grant of Loan read in part: “Interest rate of five per cent per annum; repayment period of 36 months and personal life protection policy.”
Giwa said: “There is a need for a comprehensive insurance cover; moratorium period of six months; 10 per cent equity contribution by the beneficiary of the loan and evidence of clean credit record issued by the Fund’s bank.”
Section 6 of the Regulation stipulated the loan limit of N500,000.00 only per person or household.
The Section 13 stated that applicants must also fulfil some conditions for the loan to be granted.
The security for the loan included: personal guarantee of the principal promoters; two guarantors who must be resident in Lagos state and a copy of the Lagos State Residents Registration Agency among others.
It was also noted in Section 5 that an applicant shall fill out the prescribed form and shall submit same to the Executive Secretary of the Trust Fund with evidence of Lagos residency.
It also included a valid bank verification number and tax card of the directors or owner.
According to Section 9, eligible beneficiaries shall be businesses operating within the State.
The guidelines, however, stated that the loan might be sourced from micro businesses in groups or clusters across the various local governments and local council development areas.
Also eligible for the loan included trade associations, registered cooperative groups or societies and referral from council areas.
Ambode had promised N25 billion as Employment Trust Fund during his administration for entrepreneurs.