With N1 billion naira apportioned to drive hospitality business growth in Lagos, the tourism sector of the state is expected to begin germinating despite effect of coronavirus, according to Lagos State Governor, Babajide Sanwo-Olu, after his approval of a billion naira seed capital investment for the sector.
As gathered, the N1bn seed capital was to position tourism business as a new frontier for job creation and economic prosperity in the post-Coronavirus era to mitigate the pandemic’s negative effect on the economy.
The Governor explained that the investment was required to bolster the hospitality sector by providing key operators in tourism business with soft loans to boost their capacity in driving growth.
The Governor, who announced the approval on Wednesday while speaking at the 6th Lagos Corporate Assembly held at the Banquet Hall in the State House, Alausa, revealed that seed capital will be domiciled in the Lagos State Employment Trust Fund (LSETF), adding that the funds will be made available specifically to Micro, Small and Medium Enterprises (MSMEs) operators in the sector.
He noted that the state would also be collaborating with the Central Bank of Nigeria (CBN) to further create access for fund to support the hospitality business, and that his administration had continued to strengthen its Ease of Doing Business policies to drive private investment and economic growth.
This, he said, was being made possible by the digitization of business registration and asset acquisition processes, which, he claimed, removed administrative bottlenecks.
He said: “We have just given approval for N1 billion support that will be given out through the Lagos State Employment Trust Fund to support 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.
“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.”