Lagos, BOI to seal landmark MoU to boost SME financing 

In a bold move to expand access to finance for small and medium-scale enterprises (SMEs), the Lagos State Government has announced plans to sign a Memorandum of Understanding (MoU) with the Bank of Industry (BOI) and Sterling Bank under a new financing initiative tagged the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO).

The formal signing ceremony is scheduled to take place on Wednesday, May 7, 2025, at the Adeyemi Bero Hall, Secretariat, Alausa, Ikeja, and will feature Governor Babajide Sanwo-Olu alongside major public and private sector stakeholders.

Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose, described the LASMECO initiative as “a first-of-its-kind public-private financing platform designed to bridge the funding gap faced by SMEs across Lagos.”

According to Ambrose, the programme will provide non-collateralised loans of up to ₦10 million at a concessionary interest rate of 9%, repayable over a period of two to three years. She further noted that “the loans will be risk-mitigated and 50% guaranteed by Sterling Bank, making it easier for small business owners to access funding without traditional barriers.”

She added that the LASMECO programme would prioritise SMEs operating in strategic sectors such as healthcare, agriculture, manufacturing, creative industries, and circular economy clusters.

“This is a game-changing intervention that will open new doors for cooperative-based entrepreneurs and SMEs. It aligns directly with Governor Sanwo-Olu’s THEMES+ agenda and our goal to achieve inclusive economic growth across all local government areas in the state,” Ambrose said.

The launch event will also host key stakeholders, including: Olasupo Olusi, Managing Director of the Bank of Industry, Abubakar Suleiman, Managing Director of Sterling Bank, Dr. Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), and Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI).

During the event, the Commissioner will sign the MoU on behalf of the Lagos State Government, while the Bank of Industry will be represented by its Managing Director.

The LASMECO programme, authorities say, marks a critical milestone in the state’s strategy to enhance financial inclusivity, support grassroots entrepreneurship, and stimulate broad-based economic development in Nigeria’s commercial nerve centre.