The state government of Lagos, Nigeria, has extended an equivalent of USD 2.3 million to the Lagos State Microfinance Institution (LASMI), in order to enable more low-income borrowers to obtain loans, according to Lagos State Governor Babatunde Fashola. These funds are to be disbursed by eight microfinance institutions that are registered under LASMI. Fashola stated that the Lagos state government contributed about USD 1.2 million, while the partnering MFIs under LASMI matched that amount by also providing a sum of about USD 1.2 million.
About Lagos State Microfinance Institution (LASMI):
LASMI is a state-run institution that works with specific MFIs in Lagos, including Integrated Micro-finance Bank, LASU Micro Finance Bank, Ojokoro Micro-Finance Bank, Mic Micro Finance Bank and Gapbridge Micro finance Bank in the Lagos West, Lagos East and Lagos Central Senatorial District. Inaugurated in May 2008, the basic functions of LASMI include: providing financial assistant through microfinance institutions (MFIs), managing the Lagos State microfinance fund as well as other funds, and liaising between local and foreign development finance agencies and the state government. [3] LASMI does not currently report to the MIX Market.
Bibliography:
[1] Vanguard. “Lagos boost micro credit fund with N350m.”http://www.vanguardngr.com/2009/11/23/lagos-boosts-micro-credit-fund-with-n350m/
[2] “Lagos disburses N350 Million to eight Micro Finance Banks.” http://234next.com/csp/cms/sites/Next/News/Metro/5485320-147/story.csp
[3] Office of the Governor: Lagos State. “Inauguration of the Board of Lagos State Micro Finance Institution (LASMI).” http://www.tundefashola.com/archives/news/2008/05/12/20080512N41.html
Original Source article:
Vanguard
“Lagos boosts micro credit fund with N350m”
National News Nov 23, 2009
By Olasunkanmi Akoni & Monsur Olowoopejo
The Lagos State Government has pumped the sum of N350 million into its micro credit fund expected to be disbursed by eight micro finance banks registered under the Lagos State Microfinance Institution (LASMI).
Governor Babatunde Fashola of Lagos State while presenting cheques to the banks at the State House, Alausa, said the move was to ensure that more beneficiaries could access the funds to start small-scale businesses.
Fashola explained that the eight microfinance banks were expected to inject N175 million while the state government on its part would provide a like sum.
The banks include Integrated Microfinance Bank, Gapbridge Microfinance Bank, LASU Microfinance Bank, MIC Microfinance Bank and Ojokoro Microfinance Bank among others.
Fashola had at a stakeholders meeting attended by artisans in the informal sector during the 900 days celebration, disagreed with the claim that over 23,487 operators in the informal sector have benefitted from the N1.4 billion that had been disbursed so far by LASMI.
The governor, however, noted that the state government had addressed the complaints raised, assuring that it had put structures in place to ensure that everyone willing to access the funds would do so without stress.
According to him, the scheme was the state’s strategy to ease the stress usually associated with accessing credit facilities in commercial banks, adding that it was also one of the reasons it shelved its earlier plans to give monthly stipends to unemployed graduates in the state.
“We jettisoned the idea of giving money to the unemployed because we felt it was demeaning and therefore we encouraged them to acquire skill and then come up with their own business, access the funds. For me, this is more honourable than queue up for monthly stipends.
“The micro credit scheme aside creating opportunity for people to employ themselves, they can also employ others”.
Earlier, the state Commissioner for Women Affairs and Poverty Alleviation, Mrs. Adejoke Orelope-Adefulire, noted that to ensure smooth coordination and access of the funds by interested persons, the state would meet stakeholders through the various groups and associations.
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