The Lagos State Government has partnered with the Bank of Industry (BOI) and Sterling Bank to launch a funding program for Micro, Small, and Medium Enterprises (MSMEs) in the state.
The initiative, known as the Lagos State MSME Access to Finance Scheme (LASMECO), will provide MSMEs with loans of up to N10 million at a single-digit interest rate of 9% per annum. This program is expected to create at least 10,000 jobs across critical sectors of the economy.
Speaking at the launch ceremony, Lagos State Governor, Babajide Sanwo-Olu, described the partnership as a prime example of public-private collaboration aimed at empowering MSMEs. He emphasized that the program would break barriers that have long hindered small businesses in the state.
According to the governor, the initiative would provide thousands of entrepreneurs with access to affordable loans, allowing them to grow and thrive.
The Managing Director of the Bank of Industry, Dr. Olasupo Olusi, explained that the program was designed to unlock the potential of Lagos-based MSMEs by providing them with access to finance.
He noted that the program would use technology to streamline the application and disbursement process, and 50% of the loan portfolio would be backed by a bank guarantee to reduce risk. The program would also include an accelerator component, offering MSMEs mentorship, training, and digital tools to help them grow and compete.
The LASMECO program targets key sectors such as healthcare, manufacturing, agribusiness, creative industries, and the digital economy. With its focus on accessibility and support, the program aims to drive innovation, create jobs, and expand opportunities for MSMEs in Lagos State. By providing affordable loans and a comprehensive support ecosystem, the program is poised to make a significant impact on the state’s economic development.
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