The Lagos State Government has partnered with Bank of Industry and Sterling Bank to launch a new financial initiative aimed at empowering Micro, Small, and Medium Enterprises (MSMEs). The initiative, named LASMECO, will offer affordable loans with an interest rate as low as 9%, designed to foster economic growth, job creation, and support for small businesses across key sectors.
Empowering MSMEs with Affordable Loans
Governor Babajide Sanwo-Olu officially unveiled the LASMECO programme during an event organised by the Lagos State Ministry of Commerce, Industry, and Investment. Speaking at the event, Sanwo-Olu emphasised the importance of public-private partnerships in boosting economic growth and assisting small businesses.
“This programme is a landmark initiative in Lagos State,” said Sanwo-Olu. “For the first time, MSMEs across the state will have access to loans up to N10 million at an interest rate of just 9% per annum.”
The initiative is designed to ease the financial burdens faced by small business owners, particularly in a challenging economic environment where high lending rates have often stifled growth.
A Collaborative Effort to Unlock MSME Potential
Dr. Olasupo Olusi, Managing Director and CEO of the Bank of Industry, also addressed attendees, stating that the signing of the Memorandum of Understanding marks the beginning of a transformative phase for MSMEs in Lagos. According to Olusi, this partnership is designed to remove financial barriers and support the resilience and creativity of small businesses.
“In a country where MSMEs are the backbone of the economy, access to finance is critical. This programme is a game-changer, especially for businesses in key sectors such as healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” Olusi stated.
He further highlighted that the partnership would help create 10,000 jobs through the development of enterprises, fostering wealth creation, and reducing poverty across the state.
Technology-Driven and Transparent
The LASMECO programme is fully technology-driven, ensuring efficiency, transparency, and real-time tracking of its impact. Certified cooperatives will facilitate access to the funds, ensuring accountability throughout the process. Additionally, a bank guarantee covering up to 50% of the loan amount will help mitigate lending risks and increase stakeholder confidence.
Accelerator Programme for MSME Growth
A key component of the LASMECO initiative is the accelerator programme, which will provide MSMEs with training, digital tools, and mentorship to help them scale and remain competitive. This comprehensive support aims to equip entrepreneurs with the resources they need to succeed in an increasingly digital and competitive market.
A Critical Solution for Small Business Growth
This initiative offers a much-needed lifeline for small business owners in Lagos, providing loans of up to N10 million with no collateral required. The programme is designed to create an environment conducive to business growth, providing not just funding but also the essential training and tools needed for sustainable success.
With affordable financing and business development support, the LASMECO programme is poised to play a pivotal role in Lagos’s broader goal of economic recovery and growth.
Addressing Key Barriers for MSMEs in Nigeria
The LASMECO initiative comes at a crucial time, as access to finance continues to be a major challenge for MSMEs in Nigeria. Several surveys have highlighted financing as a significant barrier to growth. To further address this issue, the federal government has announced plans to launch a de-risking fund aimed at making MSME loans more affordable and accessible.
