Who this is for: business owners who live and operate in Lagos State. Applicants from other states can’t apply.
The Lagos State Employment Trust Fund (LSETF) offers low-interest loans of up to ₦5 million to micro, small and medium-sized businesses in Lagos through its MSME Loan Programme. The interest rate is just 9% a year, well below typical commercial bank rates. Start-ups with a vocational training certificate can also apply for smaller start-up loans.
This is a loan, not a grant: you repay it over 12 to 36 months. Applications are made online through the LSETF loan portal, which accepts applications on a rolling basis.
At a Glance
| Provider | Lagos State Employment Trust Fund (LSETF) |
| Loan sizes | ₦50,000 to ₦5,000,000, depending on the loan type |
| Interest rate | 9% a year (5% on some LGA/LCDA schemes) |
| Equity contribution | 5% of the loan amount |
| Repayment period | 12 months (micro loans) or 24–36 months (SME loans) |
| Who can apply | Business owners living and operating in Lagos State |
| Deadline | Rolling (apply any time through the portal) |
Loan Types
1. Micro Enterprise Start-Up Loan: ₦50,000 to ₦250,000
- For new micro businesses in Lagos.
- Repay over 12 months at 9% a year, with a 5% equity contribution.
- You need a vocational training certificate from a Lagos State-recognised certifying body.
2. Micro Enterprise Loan: ₦50,000 to ₦500,000
- For existing micro businesses that have operated for at least one year.
- Repay over 12 months (no moratorium) at 9% a year, with a 5% equity contribution.
3. Small and Medium Enterprise Loan: ₦500,000 to ₦5,000,000
- For established businesses registered with the CAC and operating for at least one year.
- Repay over 24 to 36 months at 9% a year, with a 5% equity contribution.
LSETF also lists smaller local schemes for businesses in Ojo LGA and Onigbongbo LCDA, with loans of up to ₦200,000 at 5% a year.
Benefits
- Low interest: 9% a year, much cheaper than most bank and fintech loans
- Loans of up to ₦5 million for growing businesses
- Longer repayment of up to 36 months for SME loans
- A start-up option for new businesses with vocational training
- Backed by the Lagos State Government
Eligibility
- You must live in and run your business in Lagos State.
- For the Micro Enterprise and SME loans, your business must have operated for at least one year.
- For the SME loan, your business must be registered with the Corporate Affairs Commission (CAC).
- For the start-up loan, you need a vocational training certificate from a Lagos State-recognised certifying body.
- You must be able to pay the 5% equity contribution.
Documents You’ll Need
- LASRRA ID (Lagos State Residents Registration Agency)
- Tax ID from the Lagos State Internal Revenue Service (LIRS)
- A valid government-issued ID card
- Your Bank Verification Number (BVN)
- Passport photographs (2 for micro and SME loans, 1 for start-up loans)
- 6 months of bank statements (corporate statements for SME loans)
- CAC documents (SME loans only)
- A vocational training certificate (start-up loans only)
How to Apply
- Get your LASRRA ID and LIRS tax ID first if you don’t have them. You can’t apply without them.
- Read the loan details on LSETF’s official MSME Loan Programme page and choose the right loan.
- Go to the official LSETF loan portal and create an account.
- Fill in the application and upload your documents.
- Track your application through the portal. LSETF contacts shortlisted applicants.
Official LSETF MSME Loan Programme page · LSETF loan application portal
Questions: [email protected] or 02017000945 (Monday to Friday, 8am to 5pm).
Stay safe: apply only through the official LSETF portal. Don’t pay anyone who promises to “fast-track” your loan.
Tips
- Keep your bank statements clean. Six months of regular business transactions makes your application stronger.
- Borrow what you can repay. Monthly repayments start right away on micro loans, with no grace period.
- Register with CAC early if you plan to apply for the larger SME loan later.
- Use free training too. LSETF and other agencies run free business courses that can strengthen your application.
