Sanwo-Olu unveils N10bn Cooperative Fund to drive MSME growth, peace in Lagos

Lagos State Governor, Babajide Sanwo-Olu, has reaffirmed his administration’s commitment to grassroots economic empowerment with the unveiling of a N10 billion financing initiative for cooperative-based businesses, describing cooperatives as indispensable partners in building a peaceful, prosperous and inclusive society.

Speaking at the 2026 International Day of Cooperatives celebration held at the LASCOFED Multipurpose Hall, Ogba, Ikeja, on Saturday, Sanwo-Olu said cooperatives have remained one of the most effective vehicles for poverty reduction, job creation, social inclusion and economic resilience in Lagos.

Addressing participants on the theme, “Cooperatives for a Peaceful World,” the governor stressed that lasting peace goes beyond the absence of conflict.

“Peace is not merely the absence of conflict; it is the presence of opportunity, equity, social justice, economic security and shared prosperity. Cooperatives have consistently demonstrated their ability to bring people together around shared goals, irrespective of social, ethnic, religious or economic differences,” he said.

Sanwo-Olu, who was represented by the Permanent Secretary, Commerce, Cooperatives, Trade and Investment, Babatunde Onigbanjo, disclosed that over 16,000 cooperative societies have been registered in Lagos, operating through 24 Area Offices and contributing significantly to grassroots economic development.

Highlighting the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO) scheme, he said qualified cooperative-based micro, small and medium enterprises can access loans of up to N10 million without conventional collateral.

“Just last month, we released the first N5 billion tranche of this fund. This is the largest cooperative-led MSME financing intervention in the history of our Ministry, and LASMECO has now been adopted by the National Council on Industry, Trade and Investment as a model framework for MSME financing reform across Nigeria,” he stated.

The governor said the programme, implemented in partnership with the Bank of Industry and Sterling Bank, offers a single-digit interest rate of nine per cent, a six-month moratorium and a 36-month repayment period through a digital platform designed to ensure transparency.

He also highlighted the Lagos State Industrial Policy (2025–2030), the expansion of the Lagos State Cooperative College (LASCOCO), and strengthened regulatory oversight in collaboration with the Police Special Fraud Unit to protect members’ funds.

Sanwo-Olu urged cooperative leaders to embrace transparency, innovation and digital transformation, saying their leadership would determine the sector’s long-term success.

“The responsibility entrusted to you is significant. You are custodians of the collective aspirations, resources and confidence of your members,” he said.

He added that the true measure of a successful cooperative lies in the number of lives it transforms through business growth, home ownership, education and economic security.

In her welcome address, the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folashade Bada Ambrose-Medebem, described cooperatives as powerful instruments for inclusive economic growth, poverty reduction and social stability.

She said the theme reflected the crucial role of cooperatives in tackling inequality and strengthening communities.

“Cooperatives provide a model that fosters inclusion, equity, mutual support and sustainable development. They demonstrate that when people come together around shared goals and democratic principles, they can create lasting solutions to common challenges,” she said.

Ambrose-Medebem, who was represented by the Director, Cooperatives in the ministry, Dr. Adeyinka Adeyemi, noted that Lagos’ over 16,000 cooperative societies have become major drivers of entrepreneurship, financial inclusion and job creation, while assuring that the ministry would continue strengthening regulation, expanding financial inclusion and deepening partnerships to grow the sector.

Also speaking, President of the Lagos State Cooperative Federation (LASCOFED), Oladipo Shobule, described cooperatives as “socio-economic stabilisers” that promote economic justice, social stability and sustainable development.

“True peace is not merely the absence of conflict. It is the presence of economic justice, shared prosperity, mutual respect and community solidarity. When people have access to affordable credit and opportunities for economic advancement, hope is restored, inequality is reduced, crime declines, and peace flourishes naturally,” he said.

Shobule announced the official commissioning of LASCOFED’s Online CoopRadio platform to enhance cooperative education and member engagement.

He also urged societies to patronise LASCOFED Travel and Tours Limited and appealed to members to contribute to the N1,000 development levy for the proposed LASCOFED Cooperative Centre in Mojoda, Epe.

He commended the Lagos State Government for its continued support of the cooperative movement and urged members to remain committed to unity, accountability and collective progress in building a stronger and more prosperous Lagos.