Lagos State Governor Babajide Sanwo-Olu launched a N10 billion matched funding partnership with the Bank of Industry (BOI) to provide affordable loans to MSMEs across the state
[dropcap]L[/dropcap]agos State Governor, Babajide Sanwo-Olu, on Wednesday launched the Lagos State Government – Bank of Industry MSME Access to Finance Scheme (LASMECO), a transformative initiative designed to empower Micro, Small, and Medium Enterprises (MSMEs) throughout the state.
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The scheme represents a N10 billion matched funding partnership between the Lagos State Government and the Bank of Industry (BOI).
Governor Sanwo-Olu presided over the signing of the Memorandum of Understanding (MOU) at the Lagos State Secretariat in Alausa, Ikeja, marking a significant milestone for the MSME sector in Lagos State.
In his address, Governor Sanwo-Olu hailed the launch as a historic moment that will realize the aspirations of numerous business owners in Lagos who possess the necessary skills but lack the crucial capital to expand their operations.
He emphasized the scheme’s potential to be a major catalyst for economic growth and increased prosperity across the state.
“This is not merely a financing programme; it is the unveiling of countless dreams and an opportunity for small businesses to thrive,” Sanwo-Olu stated.
He highlighted that the LASMECO scheme will provide loans of up to 10 million naira at a highly affordable annual interest rate of 9%, specifically targeting strategic sectors such as healthcare, agriculture, creative industries, manufacturing, and the circular economy.
Governor Sanwo-Olu underscored the cooperative model of the programme, which is supported by Sterling Bank, the Lagos State Government, and various cooperative societies.
“This is not merely a financing programme; it is the unveiling of countless dreams and an opportunity for small businesses to thrive,” Lagos State Governor Babajide Sanwo-Olu said at the launch.
He noted that this collaborative approach effectively removes traditional barriers that have historically hindered the growth of small businesses.
“This platform is designed to tackle the challenges that have long stifled our MSMEs and is aligned with our vision for inclusive, sustainable development,” he affirmed.
The Governor expressed his strong belief that empowering small businesses is fundamental to the state’s ambition of becoming Africa’s leading megacity, where economic opportunities are accessible to all residents.
“We are committed to strengthening the foundation of our economy through entrepreneurship and small enterprises,” he concluded.
The Lagos Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose, also addressed the attendees at the launch event.
She described the LASMECO programme as a monumental stride towards building a resilient and forward-thinking 21st-century economy for Lagos State.
Ambrose emphasized that the scheme, with its provision of low-interest loans, is specifically tailored to help MSMEs overcome the unique challenges of operating in the Lagos business environment, while ensuring that access to crucial finance is both fair and inclusive for all eligible businesses.
“This initiative is not just about funding; it’s about creating a transparent, results-driven system that provides training, mentoring, and market linkage opportunities for MSMEs,” Ambrose added.
She also highlighted the scheme’s role in leveling the playing field for businesses across Lagos, particularly those operating within the identified strategic sectors.
Olasupo Olusi, the Managing Director/CEO of the Bank of Industry, echoed the Governor’s and Commissioner’s sentiments, describing the LASMECO programme as a potential “game-changer” for MSMEs in Lagos State.
He emphasized the programme’s strong focus on job creation, wealth generation, and poverty reduction, projecting the potential to create 10,000 jobs and the possibility of scaling the fund as performance targets are successfully met.
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“This is not just about finance,” Olusi stated. “It’s a fully technology-driven ecosystem designed to facilitate easy access, accountability, and continuous growth for MSMEs. Our commitment to this initiative will unlock the true potential of Lagos’ entrepreneurs.”
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