Lagos State Launches LASMECO Finance Scheme to Empower MSMEs

The Lagos State Government has partnered with the Bank of Industry (BOI) and Sterling Bank to launch the LASMECO Access to Finance Scheme. This initiative is designed to empower Micro, Small, and Medium Enterprises (MSMEs) in Lagos with affordable financing, mentorship, and digital tools.

Single-Digit Loan Scheme for Small Businesses

The new financing programme offers single-digit interest loans at 9% per annum. MSMEs can access loans of up to N10 million without the need for collateral. This initiative aims to address one of the biggest challenges facing small businesses—access to affordable credit.

Key Features of the LASMECO Scheme:

• Loans of up to N10 million
• Interest rate of just 9% per annum
• No collateral required
• Focus on key sectors: healthcare, agribusiness, digital economy, manufacturing, and creative industries
• Loan access through certified cooperatives
• Includes a mentorship and accelerator programme

Governor Sanwo-Olu: Public-Private Synergy Driving Growth

During the launch event, Governor Babajide Sanwo-Olu highlighted the importance of public-private collaboration. He described the initiative as “a living example of synergy,” stating it would remove financial barriers that hinder small business growth.

“For the first time, thousands of entrepreneurs in Lagos will enjoy single-digit loans without collateral. This will stimulate economic growth and generate employment,” he noted.

Read also: Lagos State Pledges Support for MSMEs, Entrepreneurs

BOI’s Commitment to MSME Transformation

Dr. Olasupo Olusi, Managing Director of the Bank of Industry, described the programme as a transformative leap for MSMEs in Lagos. He stressed that the scheme will create 10,000 jobs, boost wealth creation, and reduce poverty across the state.

He also emphasized that the initiative aligns with Nigeria’s broader economic recovery goals, especially since MSMEs contribute over 48% to the nation’s GDP.

Technology-Driven, Transparent, and Impact-Oriented

LASMECO is fully supported by a tech-enabled platform to ensure transparency, speed, and real-time impact tracking. Notably, 50% of the fund is backed by a bank guarantee, reducing lender risk and increasing investor confidence.

Moreover, the accelerator programme will provide:

• Mentorship and capacity building
• Access to digital tools
• Business development training

Conclusion

With the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, small businesses now have a structured, low-risk platform to scale operations and create jobs.

This initiative comes at a critical time, offering renewed hope and opportunities for entrepreneurs in Lagos.