Sanwo-Olu unveils N10 billion fund to boost Lagos MSMEs

Lagos State Governor, Babajide Sanwo-Olu, on Wednesday launched the Lagos State Government – Bank of Industry MSME Access to Finance Scheme (LASMECO), a groundbreaking initiative offering a N10 billion matched funding partnership between the state government and the Bank of Industry (BOI) to empower Micro, Small, and Medium Enterprises (MSMEs) across the state.

The Governor presided over the signing of the Memorandum of Understanding (MOU) at the Lagos State Secretariat in Alausa, Ikeja, marking a pivotal moment for MSMEs in Lagos.

In his address, Sanwo-Olu celebrated the launch as a historic step in fulfilling the dreams of many business owners who possess the skills but lack the necessary capital to scale their operations.

He highlighted the initiative’s potential to drive economic growth and foster 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 remarked.

He emphasized that the scheme provides loans of up to 10 million naira at an affordable 9% annual interest rate, targeting strategic sectors such as healthcare, agriculture, creative industries, manufacturing, and the circular economy.

Sanwo-Olu underscored that the programme’s cooperative model, supported by Sterling Bank, the Lagos State Government, and cooperative societies, removes traditional barriers to business growth.

“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 said.

The Governor expressed his belief that empowering small businesses is crucial for the state’s transformation into Africa’s leading megacity, where opportunities are accessible to all.

“We are committed to strengthening the foundation of our economy through entrepreneurship and small enterprises,” he affirmed.

Lagos Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose, also spoke at the event, describing the programme as a monumental step toward building a resilient, 21st-century economy.

She stressed that the scheme, with its low-interest loans, is designed to help MSMEs overcome the unique challenges of doing business in Lagos, while ensuring that access to finance is fair and inclusive.

“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 emphasized that the scheme would help level the playing field for businesses in Lagos, particularly those in strategic sectors.

Olasupo Olusi, the Managing Director/CEO of the Bank of Industry, echoed these sentiments, calling the programme a game-changer for MSMEs.

He highlighted the programme’s focus on job creation, wealth generation, and poverty reduction, with the potential to create 10,000 jobs and scale the fund as performance targets are met.

“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.”