Lagos Begins Training for ₦10m MSME Loan Scheme

The Lagos State Government has commenced a three-day accelerator training programme as part of preparations for the rollout of its Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) initiative.

It is a financing scheme that will provide qualified micro, small and medium-sized enterprises (MSMEs) with loans of up to ₦10 million at a 9 per cent single-digit interest rate.

The training is aimed at equipping accredited business accelerators with the technical expertise and operational knowledge needed to support entrepreneurs and ensure the smooth implementation of the programme.

Speaking at the inauguration, the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose-Medebem, represented by the Director of Cooperative Services, Dr Adeyinka Adeyemi, said the initiative reflects the state’s commitment to removing the financial barriers that continue to hinder the growth of small businesses.

She explained that the LASMECO programme was designed to make affordable financing more accessible by providing non-collateral loans through registered cooperative societies, giving many MSMEs an alternative to expensive commercial lending and rigid collateral requirements.

Under the scheme, eligible businesses can obtain term loans repayable over 36 months, with a six-month moratorium, while working capital loans will have repayment periods of up to 24 months, including a three-month moratorium.

The financing programme is supported by a ₦10 billion intervention fund established through a partnership between the Lagos State Government, the Bank of Industry (BOI) and Sterling Bank. The collaboration is expected to expand access to affordable credit and strengthen the state’s entrepreneurial ecosystem.

Ambrose-Medebem noted that MSMEs remain the backbone of Lagos’ economy, contributing significantly to employment and economic output. She said improving access to low-cost financing would enable businesses to scale operations, create more jobs and contribute to sustainable economic growth.

According to the commissioner, the scheme will prioritise enterprises operating in strategic sectors, including agriculture, manufacturing, healthcare, education, the digital economy, creative industries and environmental sustainability, in line with the state’s economic development objectives.

Beyond providing funding, the accelerator programme will also expose participating businesses to mentorship, enterprise development support and advisory services, ensuring beneficiaries have the skills and capacity to maximise the opportunities offered by the loan scheme.

The initiative underscores Lagos State’s broader drive to deepen financial inclusion, empower entrepreneurs and build a stronger, more resilient MSME sector capable of driving innovation and long-term economic prosperity.