Lagos Unveils N10 Billion LASMECO Finance Scheme to Empower MSMEs

In a major move to uplift small-scale businesses and drive sustainable economic growth, the Lagos State Government, in partnership with the Bank of Industry (BOI), has launched a ₦10 billion Access to Finance Scheme for Micro, Small, and Medium Enterprises (MSMEs). The initiative, known as LASMECO (Lagos State – BOI MSME Access to Finance Scheme), was formally unveiled on Thursday during a signing ceremony held at Alausa, Ikeja.

Osun State Local Government Crisis Deepens As Judge Withdraws From APC Suit

Access to Finance: A Catalyst for Ambitious Entrepreneurs

The LASMECO initiative was spearheaded by Governor Babajide Sanwo-Olu, who described the program as a “game-changer” for Lagos-based MSMEs. He explained that the scheme is designed to provide matched funding, jointly contributed by the Lagos State Government and BOI, to bridge the capital gap faced by promising businesses with limited financial access.

“Lagos State Governor, Babajide Sanwo-Olu, has launched a ₦10 billion matched funding jointly provided by the State Government and the Bank of Industry (BOI), to empower Micro, Small and Medium Enterprises (MSMEs) and enable them to expand their businesses,” read a statement on the Lagos State Government’s official Facebook page.

Sanwo-Olu emphasized that the program aligns with his administration’s commitment to economic inclusion and resilience. By injecting affordable and accessible capital into the MSME ecosystem, LASMECO is expected to create over 10,000 jobs, stimulate production, and build a more self-reliant local economy.

He stressed that supporting small businesses is a core component of the state’s broader development agenda, as MSMEs remain the backbone of employment and innovation across Lagos.

A Multi-Faceted Support System for Small Businesses

Unlike traditional loan programs, LASMECO goes beyond financial aid. The scheme offers a holistic support framework, combining capital provision, business training, mentorship, and access to market linkages.

Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose, elaborated on the scheme’s design, noting that LASMECO will prioritize transparency, inclusivity, and efficiency. According to her, a streamlined loan process will ensure that even the smallest businesses—those often overlooked in formal financial systems—can access funding based on viable business plans and potential impact.

“This isn’t just about loans,” she said. “It’s about equipping entrepreneurs with the tools and knowledge they need to succeed sustainably.”

BOI Applauds Landmark Initiative

BOI Managing Director and CEO, Olasupo Olusi, hailed the program as a transformative development for MSMEs in Lagos. He described it as a historic collaboration that breaks down structural financing barriers, especially in the face of rising interest rates and tight monetary policies.

Olusi remarked that with proper execution, LASMECO will unlock new avenues of economic inclusion, particularly for women-led enterprises, youth entrepreneurs, and startups that have traditionally faced difficulties accessing affordable credit.

“Our partnership with the Lagos State Government shows what is possible when policy is aligned with innovation,” he stated. “MSMEs are the heartbeat of the Nigerian economy, and schemes like this help them thrive.”

Private Sector Endorsements and Continued Collaboration

Representing Sterling Bank Plc, Tunde Adeola, Executive Director for Commercial and Institutional Banking, reaffirmed the bank’s unwavering commitment to MSME development. Sterling Bank, which has ongoing partnerships with the Lagos State Government, lauded LASMECO for its potential to fuel local industries and encourage formalization of small businesses.

Meanwhile, the President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, also threw his weight behind the initiative. Meshioye described LASMECO as a much-needed relief, particularly amid high borrowing costs that have stifled the manufacturing and cooperative sectors.

“This intervention is timely,” he stated. “With lower interest rates and streamlined access, MSMEs can now focus on productivity, innovation, and job creation.”

 A Blueprint for MSME Growth

The LASMECO scheme is expected to serve as a blueprint for MSME financing models in other states. By offering more than just credit, the initiative addresses core challenges facing small businesses, from access to funding and markets, to capacity building and digital inclusion.

For the Lagos State Government, LASMECO represents another milestone in its post-COVID economic recovery efforts, aimed at building a more equitable and robust entrepreneurial landscape.

Governor Sanwo-Olu concluded that the state remains committed to removing systemic obstacles that hinder small business growth, promising that LASMECO will be the first of several innovative interventions under his administration.

“As we move forward, we must invest in people—especially those who are daring to dream through enterprise. With LASMECO, we’re creating an enabling environment where dreams are funded, businesses are supported, and prosperity is shared,” he said.

With the groundwork now laid, the focus shifts to implementation, where transparency, accountability, and impact measurement will determine whether LASMECO achieves its ambitious goals of economic inclusion and empowerment.