The Lagos State Government has launched a N10 billion matched funding jointly provided by the state government and the Bank of Industry (BOI), to empower Micro, Small and Medium Enterprises (MSMEs) and enable them to expand their businesses.
Governor Babajide Sanwo-Olu led the state’s team at the formal signing of the Memorandum of Understanding (MOU) and launch of the programme, LASG-BOI MSME Access to Finance Scheme (LASMECO) on Wednesday.
Sanwo-Olu described the launch as a fulfilment of dreams for many MSMEs who have skills but lack the capital to run or scale their businesses, saying the fund will bring a turnaround in their fortunes and expand the state’s economy.
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“The launch of the joint initiative between the Lagos State Government, Bank of Industry, and Sterling Bank MSME Fund, is not just a formal unveiling of a financing programme, it is the unveiling of dreams, the lighting of thousands of small candles that together illuminates the path to a more prosperous and inclusive Lagos.
“Today (Wednesday), we proudly unveil a tri-partite partnership called “LASMECO,” a first-of-its-kind public-private financing platform deliberately designed to break the barriers that have long stifled our small businesses. It offers an affordable credit of up to 10 million naira at a low interest rate of nine percent per annum, single-digit interest to lift a huge weight off the shoulders of our business owners, giving them room to breathe, grow, and thrive. The loan is guaranteed by Sterling Bank, the state government and the cooperative societies. It is non-collateralised and focuses on strategic sectors such as healthcare, agriculture, creative industries, manufacturing, and the circular economy – areas that align with our developmental priorities.
“By empowering these specific sectors, we are hitting multiple targets – jobs, innovation, food security, better healthcare, environmental sustainability – all at once. This is aligned with our vision of inclusive and sustainable development. It is also based on a cooperative model, leveraging the power of cooperative societies,” Sanwo-Olu said.
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Folashade Ambrose, Commissioner for Commerce, Cooperatives, Trade and Investment, described the signing of the MOU and launch as a new chapter and a landmark moment in the administration’s drive to build a 21st-century economy that not only empowers businesses to thrive, but places our home-grown enterprises at the centre of prosperity, innovation, and resilience.
She said the financing scheme would empower thousands of MSMEs with structured, low-interest, and accessible credit facilities, tailored to the unique realities of doing business in Lagos.
Olasupo Olusi, managing director/CEO, Bank of Industry, described the programme as not just a signing ceremony, but the beginning of a new chapter for MSMEs in Lagos, defined by access, opportunity, and inclusion. He declared it a strategic effort that will unlock the creativity, resilience, and potential of Lagos’ MSMEs by dismantling the structural barriers that have long constrained access to opportunity.
