Abubakar Siddiq Ibn Usman
The Lagos State Government has launched the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO), a landmark initiative aimed at unlocking access to capital for Micro, Small, and Medium Enterprises (MSMEs) operating at the grassroots.
The scheme, developed in partnership with the Bank of Industry (BOI) and Sterling Bank, establishes a N10 billion fund dedicated to empowering small businesses through cooperative societies.
Under the initiative, entrepreneurs can access non-collateral loans of up to ₦10 million at a 9% annual interest rate, with a six-month moratorium, a financing model designed to combine affordability with community accountability.
During his address, Lagos State Governor Babajide Sanwo-Olu emphasized, “This isn’t just about funding; it’s about removing systemic barriers that have kept too many entrepreneurs from reaching their potential.”
The LASMECO program specifically targets high-impact sectors such as healthcare, agriculture, manufacturing, the creative industries, and the circular economy — all identified as key drivers of sustainable development and job creation in Lagos.
By routing financing through verified cooperatives, the initiative ensures that support reaches entrepreneurs where they are — from a tailor in Yaba to a food processor in Ikorodu — making access to capital more equitable and scalable.
The initiative is being hailed as a model for bottom-up economic empowerment. It is also part of a broader state strategy to foster financial inclusion, expand enterprise development, and build resilient local economies.
“This program proves that inclusive prosperity is possible when we empower from the bottom up,” the statement concluded.
LASMECO represents not only an investment in small businesses, but in the long-term stability and vibrancy of Lagos communities.
Agency News
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