In response to the devastating impact of the COVID-19 pandemic, and in line with the Federal Government of Nigeria’s ambitious goal of lifting 100 million Nigerians out of poverty within a decade, the government sought vital World Bank support to implement the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES).
The Lagos COVID-19 Action Recovery and Economic Stimulus (NG-CARES) Program is a state-level initiative designed to mitigate the local effects of the global COVID-19 pandemic. It is intended to protect the lives of both current and newly vulnerable households while also assisting in the recovery of local economic activity, notably in the Micro, Small, and Medium-sized Enterprises (MSMEs) sector.
The program is divided into three distinct Results Areas (RAs):
RA1: Emphasis on Social Security
This outcome area is focused on improving social protection mechanisms to protect vulnerable households from the economic consequences of the epidemic.
RA2: Agriculture FocusÂ
Result Area 2 focuses on rebuilding the agricultural sector to ensure food security and long-term livelihoods.
RA3: Emphasis on Micro, Small, and Medium-Sized Enterprises (MSMEs)
The Lagos State Employment Trust Fund (LSETF) is in charge of RA3 as the State’s MDA (Ministry, Department, or Agency) for MSME intervention. This result area has been designed to provide relief, aid in recovery, and empower local MSMEs. It seeks to reduce susceptibility and mitigate the financial effect of the ongoing COVID-19 situation and the resulting disruptions to ordinary business activities.
The Lagos State Employment Trust Fund provides the following awards under Result Area 3 (RA3):
Grant of Credit
The Credit Grant provides financial assistance to enterprises to co-finance up to 40% of performance loans acquired between June 16, 2020, and the present. Following the commencement of the COVID-19 crisis, these loans must come from qualified financial institutions.
Grant for Operations
The Operations award is a conditional award intended to help with continuing operational costs. For a period of six months, this grant will cover up to 50% of verifiable and documented monthly operational costs. Staff salary, recorded utilities, rent, documented private security fees, alternate power supply, and other expenses are all eligible.
IT Improvement Grant
The IT Enhancement Grant is intended to assist Micro and Small Enterprises (MSEs) in improving their technical capabilities. It encourages the use of technology and the improvement of digital tools that allow for remote work. This non-monetary award covers IT infrastructure, connectivity, and digital technology equipment like laptops, internet connections, e-commerce tools, and productivity software packages.
The award amounts differ depending on the type of business.
Micro Enterprises: Credit Grant and Operations Grant of up to N1 million; IT Enhancement Grant of up to N400,000 in hardware or software.
SMEs: Credit Grant and Operations Grant of up to N1 million; IT Enhancement Grant of up to N1.5 million in hardware or software.
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Micro Enterprise Requirements
Microenterprises must meet the following standards to be eligible for the grants:
Where applicable, the BVN of the Principal Company Registration
LASRRA (Lagos State Residents Registration Agency) evidence of established company operation
Proof of tax payment
Existing loan documentation from approved financial institutions
A minimum of three employees is required.
SMEs’ Requirements
SMEs requesting these incentives must meet the following criteria:
Company Registration of Directors BVN
Evidence of current company operations
Tax Payment Evidence
LASRRA Board of Directors
Existing loan documentation from approved financial institutions
A minimum of ten employees is required.
Finally, the Lagos Cares Grant Program for MSMEs is an important opportunity for businesses in Lagos State to get financial assistance and strengthen their resilience in the face of the ongoing challenges posed by the COVID-19 pandemic. These awards can provide the crucial boost to help your firm develop, whether you’re a micro-enterprise or a SME. Apply now and take the first step toward a brighter future for your company.
