In a major push to bolster small businesses and reduce unemployment, the Lagos State Government has joined forces with the Bank of Industry (BOI) and Sterling Bank to launch a comprehensive financing initiative for Micro, Small, and Medium Enterprises (MSMEs).
The landmark collaboration, announced on Wednesday, is designed to improve access to affordable credit and support services for entrepreneurs across the state.
The initiative, formally titled the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, was unveiled during a Memorandum of Understanding (MoU) signing ceremony led by the Lagos State Ministry of Commerce, Industry, and Investment.
Governor Babajide Sanwo-Olu, speaking at the launch, highlighted the programme’s significance, branding it a powerful example of effective collaboration between government and the private sector.
“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 ₦10m at an interest rate of just nine per cent per annum,” Sanwo-Olu said.
The governor introduced the scheme under the new name **“LASMECO”**, a dedicated financing platform aimed at breaking the cycle of limited access to capital that has long plagued small-scale businesses in the state.
“Sanwo-Olu described the collaboration as ‘a living example of synergy,’ pointing out that the scheme would serve as a vital platform for MSMEs to access affordable credit and training.”
Designed to address the high cost of borrowing in Nigeria, the LASMECO scheme will offer single-digit interest loans without collateral, making it accessible even to the smallest players in the business ecosystem. This is expected to relieve the financial pressures many MSMEs face and encourage expansion, hiring, and innovation.
Also speaking at the event, Dr. Olasupo Olusi, Managing Director and CEO of the Bank of Industry, hailed the scheme as a pivotal moment for enterprise development in Lagos.
“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.
He further underscored the potential of the programme to create up to **10,000 new jobs** by unlocking the creativity and resilience of Nigeria’s vast base of small business owners.
“The partnership would unlock the creativity, resilience, and potential of small businesses by providing access to financial resources and eliminating structural barriers,” Olusi added.
The scheme is technology-driven, ensuring transparency, efficiency, and real-time tracking of its impact. To minimise lending risks and instil investor confidence, a bank guarantees up to 50% of the fund, while disbursement will be channelled through a certified cooperative to promote accountability.
Beyond funding, LASMECO also promises hands-on support. The programme will feature an accelerator component offering mentorship, digital tools, and capacity-building training to empower MSMEs with the skills they need to grow sustainably and compete globally.
For entrepreneurs in Lagos, this initiative couldn’t be timelier. Amid rising inflation, shrinking profit margins, and limited financing options, many small businesses have been struggling to stay afloat. LASMECO presents a rare opportunity to not only survive but thrive.
This local effort aligns with broader federal initiatives aimed at empowering Nigeria’s small businesses. Recently, the Bank of Industry also disbursed ₦2.25 billion** to support **16,696 MSMEs in Gombe State, demonstrating a nationwide push to strengthen this vital sector.
As Lagos sets a new pace for economic development and job creation through LASMECO, small businesses are being given the tools to become the engine of transformation the state—and the country—urgently needs.
