Unemployment rise, ₦25 billion LSETF to the rescue

At the last count, 29 million Nigerians are jobless, according to the National Bureau of Statistics. But the Lagos State Government through the ₦25 billion Lagos State Employment Trust Fund (LSETF) has launched a massive programme to fund job placement services and training programmes for the unemployed. The initiative, if replicated by other states, could be the wedge to halt the rising unemployment scourge.DANIEL ESSIET reports.

It was a proactive, result-driven intervention aimed at addressing what is indisputably, a clear danger. Even before last week’s frightening report by the National Bureau of Statistics (NBS), which showed that 29 million Nigerians are jobless, the Lagos State Government had articulated an intervention programme aimed at nipping the growing unemployment menace in the bud.

The state government launched the ₦25 billion Lagos State Employment Trust Fund (LSETF), a massive programme for funding job placement services and training programmes for the unemployed. It was one of the interventions to drive its vision of building a robust pool of skilled labour to catalyse positive change in the Centre of Excellence as Lagos, Nigeria’s commercial nerve centre, is called.

The NBS, on Tuesday, last week released a disturbing report, which indicated that Nigeria’s unemployment rate rose from 13.9 per cent in the third quarter to 14.2 per cent in the fourth quarter of 2016.

According to the Bureau’s “Unemployment/Under-employment Report for fourth Quarter of 2016, the population of unemployed was 27.12 million in third quarter, compared to 28.58 million persons in the fourth quarter.

The NBS said this showed an increase in the number of unemployed by 351,015 persons. Although the report left not a few Nigerians frightened, the state Government may have seen it coming, which was why it created the LSETF.

The LSETF was created as part of the state’s commitment to boosting its economy through job creation and access to finance for Micro,Small and Medium Enterprises (MSMEs) operating in the state.

LSETF’s mandate also included the provision of training for the unemployed and job placements for the employable; mentorship and support for SME owners and improvement of the policy environment to ensure a conducive operational environment for them.

Through the scheme, promoters and owners of micro-businesses can get a loan of up to ₦500, 000 at five per cent interest rate per annum, while small-businesses can get a loan of up to N5million at five percent interest rate per annum.

LSETF is supporting projects that create new employments, support work-seekers and address structural constraints to more inclusive growth. It also facilitates the transformation of the informal sector to formal sector.

The Fund also aimed at registering, supervising and promoting traditional and social entrepreneurship while also facilitating business and management extension services and consultancy to SMEs, craftsmen, tradesmen and artisans.

In doing so, the fund seeks to develop inclusive and sustainable partnership initiatives with relevant stakeholders, such as community-based organisations, governments, development partners and the organised private sector.

The state Commissioner for Wealth Creation and Employment, Mr. Babatunde Durosinmi-Etti, said the fund launched its online application portal on February 24.

With the online application portal, known as Programme Application Loan Management –Portal (PALM- P), loan application process is now fully automated, making it easy and convenient for MSMEs in Lagos to send in their applications online and take advantage of the fund’s loan programmes.

The Lagos State Council of Tradesmen and Artisans (LASCOTA) President, Mr. Nurudeen Buhari, thanked the state government for the various efforts aimed at improving the productivity of artisans in the state. He said the continuous training had impacted positively on their productivity.

He expressed confidence that soon, the incidence of artisans from neighbouring countries taking over jobs that could be handled by local artisans especially those under the Tradesmen and Artisans’ Empowerment Programme (LASTEAP) would become history.

While calling on the state government to continue its assistance for members, Buhari also said that through these various interventions, other artisans who are yet to join the association would be encouraged to do so.

The Lagos State Tie and Dye Association President, Abdul Rahhed Temitope, said the cottage industry is one of the thriving enterprises that needed encouragement because of its huge potentials for alleviating poverty.

LSETF, The Nation learnt, was informed by the state’s realisation that without a well-trained, well-paid, continuously improving workforce, it may not compete with other commercial capital cities in the world, let alone remain investors’ destination of choice.

Having made impressive leap in its efforts to implement its economic blue print, the Governor Akinwumi Ambode-led administration realised that it was still faced with the challenge of finding employment for millions of young people.

Under the LSETF, which has excited stakeholders in the state and prompting calls for its replication by other states across the country, the state government has been creating jobs for those who cannot find work.

The state also went a notch higher, creating new infrastructures and reviving existing ones. Already, job seekers in sectors such as leisure and hospitality, construction, manufacturing, banking and retail, are benefiting from the intervention.

Durosinmi-Etti said the state government established LSETF to tackle unemployment and provide care for the vulnerable. According to him, the state government through the ministry was determined to tackle the menace especially among youths in the country.

He added that apart from launching a massive programme on funding job placement services and training programmes for the unemployed, the state government has complemented this with its ongoing process of matching people with jobs.

The commissioner said that under the skills training programme, youths who have received certified vocational training can get a loan of up to ₦250, 000 at five per cent interest rate to start their own businesses.

The training, which is being done in collaboration with Lagos State

Technical and Vocational Education Board (LASTVEB), was aimed at enhancing the productivity of tradesmen and artisans in the state by upgrading their skills. This was to encourage young artisans and tradesmen who are able to transform their ideas into products or services.

So far, a total of 500 artisans have been retrained and certified.

Another 1,500 artisans have been lined up for training this year.

Already, the state government has called on artisans and tradesmen in the state to join relevant associations of their vocation for increased patronage and for easy access to government’s support.

Some of the beneficiary artisans in Lagos include boilermakers, fitters, masons, builders, painters, jewellers, glassmakers, goldsmiths, mechanics, carpenters, plumbers, electricians, millwrights, chefs, panel beaters, riggers, shipbuilders and toolmakers.

Durosunmi-Etti said there was a shortfall of quality artisans in the country hence, the need for organisations and companies to contribute to building skills through increased training and development of both existing and potential employees.

Ministry of Wealth Creation and Employment Permanent Secretary, Dr. Yakub Olajide Basorun, said the ministry has been at the forefront of facilitating beneficial training programmes for artisans as well as providing work places (incubation centres) and relevant information and opportunities to enhance their trades.

The LSETF is also mandated to provide job placements for the unemployed; mentorship for business owners and improvement of the policy environment to ensure a conducive operational environment for small businesses in the state.

LSETF Executive Secretary Akin Oyebode said: “Business development support is a crucial part of what we do.”

He pointed out that it was not enough to just give individuals funds and have them pay back, but also to instil in them the requisite skills to enable them function effectively in their businesses.

Oyebode said: “The better they (trainees) are trained as entrepreneurs, the greater the chances of their businesses succeeding and creating sustainable employment opportunities that Lagos State needs. We are grateful to our partners for their efforts in joining us on this journey to move the state to the business hub of the future.”

The ministry does the training for tradesmen and artisans in collaboration with Lagos State Technical and Vocational Education Board (LASTVEB) and other public and private firms.

– Massive investment in infrastructure –

Durosinmi-Etti said beyond the training programmes for the unemployed, the government was making efforts to address infrastructure and regulatory issues to enable Small and Medium Enterprises (SMEs) and artisans increase their potential to create jobs and boost the state’s Gross Domestic Product (GDP).

Consequently, the state government, according to the commissioner, has stepped up efforts at building a robust infrastructure to support businesses, especially SMEs. Many roads and bridges across the state are being reconstructed.

Also, measures are being taken to create new avenues to spur innovation and creativity among SMEs in the state, even as investments are encouraged in alternative energy technologies.

The commissioner added that as the ministry charged with identifying initiatives and approaches to ensuring job and wealth creation, it has been working with relevant Ministries, Departments and Agencies (MDAs)to reduce bureaucracy, facilitate business and create required synergies for economic growth and development.

While emphasising the need for a more dynamic workforce through more targeted education and training programmes for job seekers, Durosinmi-Etti said the government had created various Job Registration/Labour Exchange Centres (LECs) to provide individuals with information about job openings.

The state government established the LECs to provide various wealth creation and employment services, with focus on career counselling to enable aspiring youths pursue the right career choice according to their attitude and passion.

Located in five divisions, the LECs are fully functional with guidance counsellors. They act as real exchange platforms for job seekers and employers.

The platform provides profiles of job seekers, their skills, traits, helping employers identify people who are better fit for the positions they are filling. As people connect with work opportunities more efficiently, the state’s economy moves closer to achieving its goal of creating a labour market that works.

– Online market for artisans –

The Lagos State Government has also established an online artisan marketplace to ensure that tradesmen and artisans are empowered to promote their offerings via multiple channels to determine which works best for them.

According to Basorun, the online platform would offer Lagos artisans an opportunity to reach a wider audience that may be interested in their works and services.

He said Lagos-based artisans and tradesmen could use the virtual market place provided by the government to explore opportunities and sell their services to potential customers.

He said the virtual marketplace represents a fundamental shift that would help broaden the artisans’ horizons and enable them improve their standard of living.

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