Lagos State Governor, Babajide Sanwo-Olu, has launched a N10 billion Access to Finance scheme for Micro, Small, and Medium Enterprises (MSMEs), aimed at driving local production, job creation, and economic inclusion across strategic sectors.
The fund, jointly provided by the Lagos State Government and the Bank of Industry (BOI), was unveiled on Wednesday during the formal signing of a Memorandum of Understanding (MoU) for the LASG-BOI MSME Access to Finance Scheme (LASMECO) in Alausa, Ikeja.
“This is more than just a financing programme—it is the unveiling of thousands of dreams,” said Sanwo-Olu. “We’re lighting up small businesses with hope and the opportunity to scale, grow, and thrive in a more inclusive Lagos.”
Single-Digit Interest Loans, No Collateral
LASMECO offers up to N10 million in non-collateralised credit at a low 9% interest rate per annum. The facility targets MSMEs in key sectors such as healthcare, agriculture, manufacturing, the circular economy, and the creative industries. The loan is backed by Sterling Bank, the Lagos State Government, and cooperative societies.
Sanwo-Olu emphasized the government’s vision of building a Lagos where prosperity is inclusive, adding that empowering the 90% of businesses within the MSME space is critical to achieving broad-based growth.
“Our administration is committed to creating an economy where a business idea in Oshodi has as much chance to flourish as one on Wall Street,” he said.
More Than a Loan Scheme: A Full Ecosystem
Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose, described LASMECO as a bold step in building a 21st-century economy. She noted that the scheme was designed with MSMEs in mind—simplifying loan processes, offering business mentoring, and opening up market linkages.
“This is more than a fund. It’s a transparent, inclusive system tailored to support even the smallest business owner,” she said. “It’s about equity, social justice, and a firm belief in the transformative power of small enterprises.”
10,000 Jobs Targeted, Digital Tools Embedded
BOI Managing Director/CEO, Olasupo Olusi, said the initiative is expected to create at least 10,000 jobs and unlock wealth across Lagos. The fully tech-driven scheme ensures transparency, real-time impact tracking, and ease of access.
He also noted that 50% of the fund is backed by a bank guarantee, reducing lending risks. Beneficiaries will be reached through certified cooperatives and supported through an accelerator programme offering training, mentorship, and digital growth tools.
“This isn’t just finance—it’s an entire ecosystem built for MSME success,” Olusi said.
Private Sector, Cooperatives Applaud Initiative
President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, commended the Governor for the initiative, describing it as a “watershed moment” in bridging Nigeria’s credit gap and supporting real sector growth.
“In a high-interest-rate environment, this access to single-digit financing is a game-changer. It’s a breakthrough that MSMEs in manufacturing and cooperative sectors have long awaited,” Meshioye said.
Also speaking, President of the Lagos State Cooperative Federation (LASCOFED), Oladipo Sobule, praised the government’s timing, noting that 2025 has been declared the Year of Cooperatives.
“LASCOFED is ready to support, guide, and ensure the success of this initiative, especially for youth and women, who are the backbone of our cooperatives,” he said.
Sanwo-Olu concluded by urging Lagosians to patronize locally made goods, calling it the surest path to sustainable growth and inclusive prosperity.