Lagos spent N4bn, N859m on leather hub, MSMEs in 1-yr, Commissioner reveals
Ayodele Olalere
Governor Babajide Sanwo-Olu has spent a huge N4 Billion on Lagos Industrial Leather Hub which is now 90 percent completed and would be commissioned soon.
The governor also disbursed N859 million to 1,271 MSMEs in the state in 2023.
This was revealed by the Commissioner for Wealth Creation and Employment, Akinyemi Ajigbotafe on Thursday during the 2024 Ministerial Press Briefing where he gave. accounts of the activities of the ministry in the last one year.
He said the state government in staying true to its mandate is tackling challenges militating against the growth and development of Micro, Small and Medium, MSME, scale businesses, especially the informal sector with initiatives developed to aid startups, artisans and entrepreneurship development in the state.
“One of such major initiatives is the establishment of Industrial hubs, which entails creating a congregation of related enterprises in an ‘ardent fed location for enhanced productivity, wealth creation and business development through provision of access to business accommodation, workshop, standard equipment and infrastructural facilities at affordable costs. A multiplier effect is to create value chains in such enterprises such as leather works.”
He added that the state government is about to complete the construction and development of Lagos Industrial leather hub at Matori, Mushin, to create employment, develop capacity of artisans and provide necessary equipment and infrastructure for MSMEs operating in the leather value chain.
“The hub facilities include the production area with industrial equipment (for mass production of Leather products) and shopping area that comprises shops, training rooms, work stations, office space, showrooms etc. Currently, the project is about 90% completed and it is billed to be commissioned soon.”
Ajigbotafe also noted the Lagos State Employment Trust Fund, LSETF, which was established by the Lagos State Employment Trust Fund Law 2016, to tackle unemployment and promote entrepreneurship in Lagos State has empowered its residents with job and wealth creation opportunities.
He said the MSME loan programme, which attracts a five to nine percent interest rate per annum, is available to business owners who are registered residents of Lagos State.
“In 2023, we disbursed N859 million to 1,271 MSMEs in the state. This support helped these businesses grow, creating 51, 822 direct and indirect jobs in Lagos state.
“The LSETF implements this initiative in partnership with international development organizations such as the United States African Development Foundation (USADF) and United Nations Development Programme . In 2023, LSETF also trained 2,170 young persons across various vocational trades, and 1,172 were placed in jobs,” he noted.