The Lagos State Government has announced the approval of an N1 billion seed capital for investment in the tourism and hospitality sector in the state. The N1 billion seed capital is to help drive new growth in that sector.
The announcement was made by the Executive Governor of the State, Babajide Sanwo-Olu during a meeting with entrepreneurs and business leaders in the state. The event tagged, ‘BOS Meets Business,’ which was held at the Banquet Hall in the State House, Alausa Ikeja, had business leaders and stakeholders in attendance.
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According to the Governor, the investment was needed to support/strengthen the hospitality industry, thereby providing key operators in the tourism business with soft loans to boost their capacity in driving growth and help them with access to capital.
It is clear that one of the new frontiers for job creation and economic viability in the state, especially during the post-COVID era is the tourism and hospitality industry. Therefore, the initiative is indeed a welcome development especially in a time like this.
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Where Will The Seed Capital Be Domiciled
According to Sanwo-Olu, the seed capital will be domiciled in the Lagos State Employment Trust Fund (LSETF). However, the funds will be made available specifically to Micro, Small, and Medium (MSMEs) operators in the sector.
In addition, the Lagos State Government would be collaborating with the apex bank – Central Bank of Nigeria (CBN), to further create access to funds to support the hospitality industry.
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Installation Of The 6,000km Optical Fibre
Also, the State Government, made it clear that arrangements are currently under conclusions to provide technological infrastructure to support MSMEs. This will be done through the commencement of the first phase installation of the 6,000km optical fibre across the state to help the industry.
More so, drastic measures have been put in place to drive private investment and economic growth, by removing the hiccups around running businesses in the state. “We have just given approval for N1 billion support that will be given out through the Lagos State Employment Trust Fund to support the hospitality business in the State. The beneficiaries of this fund will go through screening in line with the requirement of the agency. We are making this investment because of the huge potential for job creation and inclusive growth this sector can bring about.
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We will be working with the CBN for more funding to fully develop the potential of our tourism sector. This effort is being completed with the rolling out of 3,000 km optical fibre across the State to provide technological infrastructure for the MSMEs whose operations would depend on fast internet networks to drive their businesses,” the Governor said.
The Governor said that it is obvious that Lagos State is in a move to strengthen its economy which has a GDP valued at $130 billion and over 3 million MSMEs.
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However, this can only be very much achievable when good policies to help foster an enabling environment for entrepreneurs are put in place. The strengthening will come in the form of good policies for accelerated growth and prosperity.
As a Nigerian entrepreneur in the hospitality and tourism industry, what is your take on this new development? We will like to read your comments below.
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