In a major boost for small businesses in Lagos, the state government has teamed up with the Bank of Industry (BOI) and Sterling Bank to launch a funding programme that will offer Micro, Small and Medium Enterprises (MSMEs) loans at just 9 percent interest – well below the market rate.

The initiative known as the Lagos State MSME Access to Finance Scheme or LASMECO was formally launched on Wednesday during a signing ceremony coordinated by the Ministry of Commerce, Industry and Investment.

The scheme is expected to support entrepreneurs with affordable loans of up to N10 million, and create no fewer than 10,000 jobs across critical sectors of the economy.

Speaking at the event, Lagos State Governor, Babajide Sanwo-Olu said that the MoU is a living example of synergy   public-private collaboration at its finest, aimed at one of the most important goals: empowering our MSMEs.

He said: “Today, we proudly unveil the Lagos State Access to Finance Programme for MSMEs Through Cooperatives, a tripartite partnership between the Lagos State government, the Bank of Industry (BOI), and Sterling Bank. In simpler terms, we launched the LASG-BOI-Sterling MSME Fund, an initiative Lagosians will come to know by the name LASMECO.

“This programme is the first-of-its-kind in our state: a public-private financing platform deliberately designed to break the barriers that have long stifled our small businesses.

“What does this mean in practical terms? Allow me to highlight why LASMECO is a game-changer. For the first time, thousands of entrepreneurs in Lagos will have access to loans of up to N10 million at a remarkably low interest rate of just 9 per cent per annum.

“To put that in perspective, many MSMEs today face lending rates in the high teens or twenties, a burden that can crush a fledgling enterprise. By offering single-digit interest, we are effectively lifting a huge weight off the shoulders of our business owners, giving them room to breathe, grow, and thrive.”

On his part, the Managing Director/Chief Executive Officer, Bank of Industry, Dr. Olasupo Olusi, said the initiative was built to unlock the creativity, energy, and resilience of Lagos-based MSMEs.

According to him, the programme will use technology to streamline the application and disbursement process, and 50 per cent of the loan portfolio will be backed by a bank guarantee to reduce risk and give lenders more confidence.

He said: “At the Bank of Industry, we believe MSMEs are the engine of economic growth driving innovation, creating jobs, and expanding opportunities. However, we also know that without access to finance, their potential remains limited.

“This is why the government of President Bola Ahmed Tinubu is focused on delivering access to finance to the MSME segment of Nigerian enterprises. This programme is designed to change that. It targets key sectors that are central to Lagos State’s development including Healthcare to strengthen systems and spark medical innovation; Manufacturing boosts local production and industrial capacity; Agribusiness to improve food security and rural livelihoods; Creative industries to grow our cultural and artistic economy, and digital economy to unlock youth-led innovation and enterprise.”

Olusi said that beyond where the funding goes is how it works and that’s what truly sets this programme apart.

His words: “It’s not just what we’re financing; it’s the way we’re doing it. First, it is fully technology-driven, from application to disbursement, ensuring speed, transparency, and real-time impact tracking. Second, up to 50 per cent of the fund is backed by a bank guarantee, therefore de-risking the lending process and building stakeholder confidence.

“Thirdly, access to the funds will be facilitated through certified cooperatives, which will ensure structure, trust, and accountability. And finally, there’s an accelerator programme, offering MSMEs mentorship, training, and digital tools to help them grow and compete. This is not just finance’ it’s a full ecosystem built for success.

“And at the heart of it all is accessibility. Under this scheme, MSMEs can access up to N10 million at a single-digit interest rate of 9 per cent per annum, without collateral.”

Nume Ekeghe

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