Apply: Sanwo-Olu Unveils N10m Loan for Small Businesses in Lagos

• The Lagos State Government has partnered with the Bank of Industry and Sterling Bank to launch a finance scheme a 9% interest rate
• The initiative, named LASMECO, aims to boost economic growth, create 10,000 jobs, and support small businesses across key sectors
• It is fully technology-driven, with certified cooperatives facilitating access and an accelerator programme providing training and mentorship

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Lagos State Government has launched a new programme in collaboration with the Bank of Industry and Sterling Bank to provide Micro, Small, and Medium-Sized Enterprises (MSMEs) with access to affordable funding and support.

According to a statement released on Wednesday, the partnership—formalised with the signing of a Memorandum of Understanding—is aimed at offering MSMES single-digit loans with interest rates as low as 9% to promote expansion and job creation.

The Lagos State Ministry of Commerce, Industry, and Investment organised the launch event for the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, The Punch reported.

Babajide Sanwo-Olu, the Governor of Lagos State, spoke at the event and emphasised the importance of public-private partnerships in driving economic growth and supporting small businesses in the region.

The partnership is “a living example of synergy,” according to Sanwo-Olu, who also noted that the programme would serve as a vital means for MSMEs to access affordable finance and training.

To eliminate the obstacles that have long hindered the growth of small enterprises in Lagos, he introduced the initiative under the name "LASMECO," a public-private financing platform.

“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.

He stressed that the programme would significantly reduce the financial burden currently experienced by small business owners, who often contend with exorbitant lending rates.

The Managing Director and CEO of the Bank of Industry, Dr Olasupo Olusi, also spoke during the ceremony. He stated that the signing of the Memorandum of Understanding marked the beginning of a transformative phase for MSMEs in Lagos.

He highlighted that by providing small businesses with access to capital and removing structural barriers, the partnership would unlock their potential, creativity, and resilience.

Olusi added that the programme would help create 10,000 jobs through enterprise development, thereby enhancing wealth creation, increasing support for MSMEs, and reducing poverty in the state. He reiterated the vital role of MSMEs in fostering innovation, economic development, and employment.

“In a country like ours, where MSMEs are the backbone of the economy, access to finance is crucial. This initiative is designed to provide that access, particularly for MSMEs in sectors vital to Lagos State’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” Olusi said.

According to the statement, the scheme is fully technology-driven, ensuring transparency, efficiency, and real-time impact tracking. Lending risks will be mitigated and stakeholder confidence enhanced through a bank guarantee covering up to 50% of the fund.

It also stated that certified cooperatives would facilitate access to the funds, ensuring accountability and structure. The scheme will feature an accelerator programme that will support MSMEs in scaling up and becoming competitive in the market through the provision of digital tools, training, and mentorship.

Under this scheme, MSMEs in Lagos will be eligible to receive loans of up to N10 million with no collateral required, at the competitive interest rate of nine per cent. The purpose of the programme is to provide comprehensive support to entrepreneurs, equipping them with the resources, training, and guidance needed to succeed and grow.

This initiative offers a much-needed lifeline to small businesses and furthers the state’s broader goal of economic recovery and growth at a critical time for MSMEs in Nigeria.

FG rolls out funding for SMEs

Legit.ng reported that several surveys have identified access to finance as a key problem hindering the growth of micro, small, and medium enterprises in Nigeria.

In a bid to address this issue, the federal government has announced that it will launch a de-risking fund.

This fund will serve a single purpose – to make MSME loans more affordable and accessible.

Source: Legit.ng