By Kayode Olopade
Lagos State Governor, Babajide Sanwo-Olu has launched a 10 billion naira 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 expand their businesses.
Governor 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) at Alausa, Ikeja, today.
Speaking at the programme, Sanwo-Olu described the launch as a fulfillment of dreams for many MSMEs who has skills but lack the capital to run or scale their businesses, saying the fund will bring a turnaround in their fortune and expand the State’s economy.
His words: “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, 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 9 percent per annum single-digit interest to lift huge weight off the shoulders of our business owners, giving them room to breathe, grow, and thrive. The loan is guaranteed by Sterling Bank Plc, the State Government and the Cooperative Societies, it is non-collateralised and focus 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 cooperative model, leveraging the power of cooperative societies.”
According to the Governor, his administration deeply understands and is committed to building an economy that leaves no one behind – an economy where a great idea in Oshodi can get the same opportunity to flourish as one on Wall Street.
“We envision a future Lagos – not too many years from now – as Africa’s model megacity and a true global economic hub, a city where prosperity is inclusive and every willing citizen can achieve their potential. To get there, we know that empowering our small businesses and enterprising citizens, 90 percent of who are in the MSMES, is absolutely fundamental. The foundation of our grand economic ambitions must be solid and broad through the broad base of entrepreneurs and small enterprises that sustain us. We are firmly committed to strengthening that foundation as this government is pulling resources together to alleviate poverty.”
“Crucially, we recognise that government alone cannot achieve these ambitions. Partnerships are the cornerstone of our strategy and we are fortunate in Lagos to have forward-thinking private sector partners and institutions that share our vision. When the public sector’s will and resources meet the private sector’s innovation and capital, the synergy can unlock tremendous value. Today’s launch is a living example of that synergy – public-private collaboration at its finest, aimed at one of our most important goals: empowering our MSMEs, he said.”
Sanwo-Olu further called on Lagosians to patronise locally made goods as it is the sure path to economic growth and prosperity.
Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose, 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.
“The financing scheme will empower thousands of MSMEs with structured, low-interest, and accessible credit facilities, tailored to the unique realities of doing business in Lagos. Each of the sectors was chosen deliberately, they all represent areas where Lagos has both a competitive advantage and an urgent development need.
“The vision of the administration, as captured in the T.H.E.M.E.S+ Development Agenda, is to transform Lagos into a modern megacity where innovation, productivity, and opportunity are accessible to all. This event is therefore more than unveiling of a finance scheme, it is a declaration that Lagos State believes in the power of small businesses to transform the economy. It is a message that access to finance should be a right and support system for every bold dreamer and hard-working entrepreneur willing to take a risk and create value.
“It is also about equity and social justice. It is about ensuring that all MSMEs have a fair shot at success. And we are not working alone. This scheme is a demonstration of what is possible when government listens, when institutions respond, and when partnerships are forged for impact,” she said.
The Commissioner affirmed that the scheme is not just a fund but a system designed to be transparent, inclusive, and results-driven as beneficiaries will not only access capital, but will also be exposed to training, mentoring, and market linkage opportunities, while the loan process has been simplified to remove bottlenecks and ensure that even the smallest business owner with a viable plan can access the support they need.
Managing Director/CEO, Bank of Industry, Olasupo Olusi, 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.
“Today, we take a bold step in that direction, together as the programme aims to create 10,000 jobs through enterprise development, unlock wealth in Lagos, expand MSME support, and reduce poverty. The 10 billion naira fund is the first part of a scalable, performance-based agreement. As goals are met, the fund can grow, fostering continuous growth and empowerment.
“Firstly, it is fully technology-driven, from application to disbursement, ensuring speed, transparency, and real-time impact tracking. Secondly, up to 50 percent of the fund is backed by a bank guarantee, therefore de-risking the lending process and building stakeholder confidence. Thirdly, access to the funds will be facilitated through certified cooperatives, which will ensure structure, trust, and accountability. And finally, there’s an accelerator programme, offering MSMEs mentorship, training, and digital tools to help them grow and compete. This is not just finance, it’s a full ecosystem built for success,” he said.
President, Manufacturers Association of Nigeria, Otunba Francis Meshioye, said the launch was a testament to the power of collaboration and the commitment of the Lagos State Government to empowering MSMEs, in whose hands lie the future of every flourishing economy.
“I would like to specially commend the Governor, Babajide Sanwo-Olu for all the remarkable strides that the State has achieved in recent times. In nearly six years, your administration has shown steadfast commitment to fostering an economy where businesses evidenced by the investment of over N8.4 billion to support more than 12,000 MSMEs across the State, spending N1.17 billion loans to 4,600 MSMEs and another N558.56 million to support some Lagos-based businesses in 2024 alone.
“Clearly, the official launch of the LASG-BOI MSME Access to Finance Scheme being launched today marks another significant milestone in the quest to transform the MSME landscape in Lagos State. This scheme is a breakthrough in the efforts to bridge the financing gap and unlock the full potential of MSMEs within the State. This transformational intervention for MSMEs undisputedly open new doors to access funding without traditional barriers.
In a high-interest rate environment of over 35 percent rated as the 6th most expensive country to source credit, the signing of this Memorandum of Understanding (MOU) is a watershed moment for cooperative entrepreneurs and manufacturing MSMEs. Members of MAN are particularly eager to see that this scheme, which promises unprecedented access to finance, and capacity-building opportunities succeeds. This is because we strongly believe that this initiative is a game-changer for increased productivity, job creation and sustained economic growth and development,” he said.
President, Lagos State Cooperative Federation, LASCOFED, Oladipo Sobule, expressed profound appreciation to the State Government for the initiative that came at the most important moment as this year 2025 has been declared the cooperatives year.
“Lagos has gained a huge take on poverty alleviation. Lascofed is well positioned to provide guidelines, training and support to the beneficiaries and special attention would be given to the youth and women as they are the pillars of cooperatives, which helps to position Lagos State Government at the top of cooperative development in the country.
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