Lagos – Gov. Akinwunmi Ambode of Lagos State on Tuesday signed into law the N25billion Employment Trust Fund (ETF) bill, aimed at tackling the high rate of unemployment in the state.
Ambode said at the Lagos House, Ikeja, that the signing was a milestone of his administration to tackle the challenges of unemployment through granting of soft loans to individuals for the purpose of making them self-employed, to create wealth.
He said one of the promises he made to residents during his campaign was to set up an ETF scheme to address the challenges of unemployment in the state.
“Each year, the state government will inject N6.25 billion into the fund for a period of four years, making it N25 billion cumulatively,” he said
According to him, a board of trustees will be announced in due course to manage the fund.
He said that members of the board would be outside the purview of government.
The News Agency of Nigeria (NAN) reports that Ambode, in November 2015, sent the ETF bill to the State House of Assembly for approval.
The fund is aimed at transforming employment creation in the state over the next four years.
It will be administered as soft loans to bona fide residents of the state who desire facilities between N100,000 and N1 million or more.
The fund will be administered through an independent Trust backed by an efficient structure that will disburse the funds.
The Ministry of Wealth Creation and Employment, created in June by the governor, will oversee the affairs of the scheme, while the funds will be channelled through the state’s micro-finance institutions.
About one per cent interest rate will be charged on the loan to take care of administrative expenses.
