LSETF affirms continued support of SMEs with legal, tax, insurance, business mentoring

The Lagos State Employment Trust Fund (LSETF) has reaffirmed its commitment to ongoing partnerships with legal, tax, insurance, financial, and business mentorship professionals, supporting small business owners in Lagos State through its programs.

These services include pro-bono or discounted access for contract reviews, business audits, discounted business insurance packages, business mentoring and more, supporting many small businesses, and counting.

Funmi Erics-Sobunkola, head of the business support unit of LSETF under the Ministry of Wealth Creation, highlighted this during the recently held boot camp graduation ceremony of the ELP (Empowerment for the Local People) Epe cohort program, upon the successful conclusion of a virtual one-month fully-funded training.

The graduation ceremony also doubled as an onsite training session covering tax, legal and general business support advisory.

The training is part of the agency’s broader mission to equip Lagos-based small and medium enterprises (MSMEs) with the tools and knowledge needed to thrive.

Through a series of free workshops, expert sessions and one-on-one advisory support, LSETF has built a network of support services tailored for entrepreneurs struggling to navigate Nigeria’s complex regulatory and financial terrain.

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Addressing tax frameworks

The session went beyond basic bookkeeping to distinguish between the tax frameworks which small businesses must navigate. Participants were advised to choose their registration model carefully, as federal and state tax obligations vary accordingly.

A tax expert during the training clarified that taxes are separate from penalties, fines, or service fees, and misclassifying them can lead to inadvertent non-compliance.

He stressed that robust record-keeping is essential for surviving a tax audit, warning that many businesses fail not due to poor products, but because of inadequate financial documentation.

“Start professionally while you’re still small,” he advised, reminding participants to separate personal finances from business accounts, maintain detailed salary histories and handle all transactions through a traceable business account.

Monthly PAYE (Pay As You Earn) deductions were discussed at length, including tools available on Lagos State’s eTax portal that can help calculate employer obligations.

The facilitator also dispelled myths about cost, confirming that registration for PAYE is entirely free, and urging attendees not to delay or avoid formalising their businesses.

Participants were reminded that the proposed finance bill could exempt such businesses with annual turnovers below N25 million from company income tax entirely.

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Importance of legal, risk and insurance preparedness for small businesses

Erics-Sobunkola also underscored the importance of professional guidance, legal preparedness even for small businesses and lifelong learning in enterprise management.

She urged business owners to confront operational blind spots early, avoid overlooking contract drafting and legal review and reach out for legal advice.

Risk identification was another pillar of the conversation. Attendees were told that good planning starts with understanding the threats that might undermine a business. “If you get this, you’ll be able to see the risks and factor them in your business, ahead of your plans,” she said.

Insurance, a topic often neglected by small business operators, was tackled head-on.  Morakinyo noted that the LSETF is collaborating with insurance companies to offer entrepreneurs access to discounted coverage rates.

Participants recalled how the boot camp has educated them on how to manage a business. For instance,  Folorunsho Shaji, owner of Excelsior Laundry Services in Epe, recalled his challenge in retaining staff. However, a key takeaway for him during the boot camp is the advice to consider an apprenticeship system to retain his staff. He also spoke about grants and soft loans received by LSETF.

Another graduate, Solomon Timothy, involved in agriculture, production and livestock, remarked that the session covered a broad range of topics that he found enriching, particularly human resources, business planning, and strategies for growing a business. “It’s a fair and good platform. I’ve learnt how to gain customers, and build brand loyalty to promote my business,”, he said.

How small businesses contribute to the growth of the economy

Oyindamola Egbeyemi, director of programs and coordination at LSETF, highlighted that small businesses are the engine room of national growth and individual empowerment.

In emphasising the significance of SMEs Egbeyemi said, “SMEs make up about 40 percent of the GDP ,” while noting that Nigeria should aim for an economic reality where entrepreneurs are properly empowered.

Another key theme was sustainability. With loan access and financial literacy sitting high on the agenda, she reiterated that its role goes far beyond training to the challenges of maintaining consistent cash flow.

She acknowledged that while starting a business often begins with a great idea, sustaining it requires proper financial management. “It is one thing to have a beautiful idea and to start a business,”, but also have access to finance with your savings, maybe some debt financing, borrowings from your family or friends or equity from an investor.”

Participants were encouraged about the ongoing availability of free virtual sessions hosted by the Small and Growing Businesses Academy (SGA) every Tuesday and Wednesday, ensuring continuous access to training and resources.