Lagos Council Gives $1,200 Loans to Small Business Owners

Small business owners in Agege, Lagos are getting a financial boost that could change their lives, thanks to a new partnership putting cash directly into the hands of local entrepreneurs.

The Agege Local Government teamed up with the Lagos State Employment Trust Fund to launch a loan program offering up to one million naira (about $1,200 USD) at just nine percent annual interest. That's significantly lower than most commercial lending rates in Nigeria, where small businesses often struggle to access affordable capital.

The program isn't just handing out money and hoping for the best. Before anyone receives a loan, they complete a four-week training covering financial literacy, business planning, and digital marketing. Of the 200 people who enrolled in the training, 130 graduated and applied for funding.

So far, 10 business owners have each received 500,000 naira ($600 USD). Another 25 applications are under review. About 52 applicants were declined due to poor credit history, but officials say that's something they can work on improving for future rounds.

Chairman Abdulganiyu Obasa says the goal is simple: lift people out of poverty by supporting startups and existing small businesses. The Lagos State Employment Trust Fund handles the vetting process and works with each recipient throughout their loan period, ensuring the money goes toward business growth and helping them stay on track with repayments.

The Ripple Effect

This program represents something bigger than individual loans. Youth make up about 60 percent of Lagos's population, and traditional white-collar jobs simply can't absorb everyone looking for work.

That's why the council has also upgraded skill training centers across the area, teaching everything from fashion design and beauty services to drone operations and tech repair. Commissioner Mobolaji Ogunlende called it "a template that can be replicated" across all 57 local governments in Lagos State.

Executive Secretary Feyisayo Alayande emphasized that success means more than just receiving money. By combining training with funding, the program builds capacity for long-term business sustainability. Business owners learn to structure their finances, market digitally, and plan for growth before they ever touch loan money.

The program will roll out in phases, with more beneficiaries coming on board as it expands. For the 10 entrepreneurs who've already received funding, it's a chance to turn their business dreams into reality with support, education, and affordable financing behind them.