The Lagos State Government, in collaboration with the Bank of Industry (BOI) and Sterling Bank, has launched a new initiative aimed at empowering Micro, Small, and Medium Enterprises (MSMEs) in the state with easy access to affordable finance and support for business growth.
In a joint statement released on Wednesday, the three entities announced the launch of the Lagos State BOI–Sterling Bank MSME Access to Finance Scheme, following the signing of a Memorandum of Understanding (MoU). The program will provide MSMEs with access to single-digit loans at a competitive nine per cent interest rate to foster growth, job creation, and economic resilience.
The initiative was officially launched in a ceremony organized by the Lagos State Ministry of Commerce, Industry, and Investment. During the event, Lagos State Governor Babajide Sanwo-Olu emphasized the importance of public-private partnerships in driving economic growth and supporting local businesses in the state.
A Game-Changer for Lagos MSMEs
Sanwo-Olu described the collaboration as “a living example of synergy,” pointing out that the program would serve as an essential platform for MSMEs to access affordable credit and training, which have long been challenges for small business owners. He introduced the scheme under the name LASMECO—a public-private financing platform designed to break down barriers that have traditionally hindered small business growth in Lagos.
“This programme is the first of its kind in our state, and it is designed to address the challenges faced by MSMEs. For the first time, thousands of entrepreneurs in Lagos will have access to loans of up to N10 million, at an interest rate of just nine per cent per annum,” Sanwo-Olu said, stressing that the initiative would significantly ease the financial burdens of small business owners who often face high lending rates in traditional banking systems.
Unlocking Potential for Job Creation
The Managing Director and CEO of the Bank of Industry, Olasupo Olusi, also spoke at the event, highlighting the transformative potential of the scheme for MSMEs in Lagos. He explained that the MoU signing marked the beginning of a new chapter that would unlock the creativity, resilience, and potential of small businesses by providing access to much-needed financial resources.
“The partnership will contribute to the creation of 10,000 jobs through enterprise development, wealth creation, and reducing poverty. MSMEs are the backbone of Nigeria’s economy, and this initiative is aimed at enhancing their capacity to drive growth, innovation, and job creation,” Olusi remarked.
The scheme will target key sectors crucial to Lagos’ economic development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy. Olusi emphasized that providing access to finance for MSMEs in these sectors would significantly contribute to economic development in the state.
Technology-Driven and Structured for Success
The Lagos MSME Access to Finance Scheme is designed to be technology-driven, ensuring that loan applications are processed quickly and transparently. A unique feature of the initiative is that up to 50 per cent of the fund is backed by a bank guarantee, which will mitigate the risks associated with lending and boost stakeholder confidence in the program.
Access to funds will be facilitated through certified cooperatives, which will ensure proper structure and accountability. The initiative will also offer an accelerator programme that provides mentorship, training, and digital tools to help MSMEs grow, adapt to market changes, and remain competitive.
A Timely Boost for Entrepreneurs
Under this scheme, MSMEs in Lagos will be able to access loans of up to N10 million with no collateral required, making it a much-needed lifeline for small businesses that often struggle to secure funding from traditional banks. The initiative is designed to provide comprehensive support to entrepreneurs, giving them the resources and guidance they need to succeed and thrive in a challenging economic environment.
This partnership between the Lagos State Government, Bank of Industry, and Sterling Bank is especially timely, offering critical support to MSMEs at a time when many small businesses are facing unprecedented challenges. By addressing the financial and structural barriers that hinder business growth, the scheme aims to contribute to the broader goal of economic recovery and sustainable growth in Lagos State.
In a related development, the Federal Government, through the Bank of Industry, has disbursed N2.25 billion to support 16,696 MSMEs in Gombe State, underscoring the government’s continued commitment to empowering small businesses across Nigeria.
