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A Fund known as the Lagos State Micro-Finance Fund is established by the Lagos State Micro-Finance Institution (LASMI) to provide additional operational funds to interested Microfinance Banks who shall in turn grant loans directly to entrepreneurs in line with guidelines that are put in place from time to time by the Institution (LASMI) towards achieving the poverty alleviation programme of the Lagos State Government.
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The Fund shall be registered and run as a limited partnership with the State Government as the principal partner and other eligible third party investors as limited partners.
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The rights, obligations and entitlements of all investors in the Fund shall, subject to provisions of the enacting Law, be provided for in a partnership agreement that would be executed by all investing partners.
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The Fund shall be a profit centre within the Institution (LASMI) and it shall provide for a commercial Fund which is to provide wholesale debt capital to registered interested Microfinance Banks.
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The Fund shall be derivable as follows:
- an amount to be budgeted for and appropriated by the Lagos State House of Assembly;
- revenue generated through administrative charges, management fees, and other levies;
- other arms-length commercial fund raised by the Institution (LASMI) in the general course of business subject to such conditions as may be laid down by the Board;
- any other money accruing to the Institution (LASMI) from any other source.
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The Fund shall be managed and administered on the basis of private equity principle by the Fund Manager as directed by the Board. | |
