The Lagos State Employment Trust Fund (LSETF) has granted moratoriums for loan repayment to 11,000 Micro, Small and Medium Enterprises (MSMEs) and technology start-ups in the state.
This was made known by the Acting Executive Secretary of LSETF, Teju Abisoye. She revealed that the decision was made to help ease the financial burden on these ventures brought about by the COVID-19 pandemic.
Businesses all over the world have been hit by the COVID-19 pandemic which has seen many SMEs and even larger corporations seeking suspension on repayment of loans. To keep the struggling SMEs in business, LSETF has placed a moratorium on credit yet to be repaid.
According to reports, some SMEs had obtained loans from LSETF before the Coronavirus outbreak for their business growth, however, the business hasn’t been buoyant, so the moratorium is part of the relief measure by the state government to assist SMEs amidst the shutdown.
Abisoye said, “We are passionate and committed to enabling every productive resident in Lagos to dream, grow and succeed in their endeavours. We are keen to help them get access to affordable financial and other institutional support they need to create wealth and employment for our youth, while significantly contributing to building a 21st Century Economy for Lagos in alignment with the State Government’s THEMES agenda.
“We understand that to do this; we must engender an enabling environment for small businesses to operate and thrive. In recognition of the difficulty that businesses may encounter this period, we understand that many of them will not be able to meet their loan repayment obligations.
“Therefore, we hope this announcement will serve as a spark of optimism in anticipation of a quick return to normalcy and business continuity. We also urge them to adhere strictly to the recommendations of the World Health Organisation (WHO) and the relevant health authorities in Nigeria as we all work together to end this pandemic.”
