Lagos State Government is set to open applications for a N10 billion non-collateral loan scheme targeted at cooperative-based Micro, Small and Medium Enterprises (MSMEs) across the state, as part of efforts to improve access to finance for small businesses.
The state government has now onboarded 19 accelerators that will support the processing of applications, enterprise support services, monitoring, and implementation of the Lagos State MSME Cooperative (LASMECO) initiative.
The development was confirmed during a signing ceremony held at the Ministry of Commerce, Cooperatives, Trade and Investment (MCCTI) in Alausa, Ikeja, on Tuesday.
Speaking at the event, Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, said the selection of the accelerators followed a transparent and merit-driven process focused on competence, innovation, technical capacity, and alignment with the economic development goals of Lagos State.
According to her, the selected organisations are expected to help ensure that MSMEs under the programme receive the right business support and guidance needed to build sustainable and competitive businesses.
“We are satisfied that the organisations represented before us possess the expertise and the institutional commitment required to drive meaningful impact across the LASMECO MSME landscape,” she said.
“You will provide rigorous enterprise support services, strengthen the capacity of beneficiaries, uphold accountability and transparency in every transaction touched by your platforms, support active monitoring and evaluation under the Ministry’s oversight, and ensure every deserving entrepreneur under this scheme receives the guidance required to build a sustainable, bankable, and competitive business.”
The LASMECO initiative is designed to provide single-digit interest financing without collateral requirements to MSMEs operating through cooperative societies in Lagos State.
The commissioner explained that the programme was created to bridge long-standing financing gaps affecting small businesses, deepen financial inclusion across Local Governments and LCDAs, strengthen cooperative structures, and unlock the growth potential of entrepreneurs facing capital constraints.
She also highlighted the partnership between Lagos State Government and the Bank of Industry (BOI), describing it as a strategic collaboration aimed at building a practical and scalable financing model for MSMEs.
“This is why our partnership with the Bank of Industry illustrates the power of strategic collaboration in advancing economic development,” she said.
“By combining the institutional weight of BOI with the vision and grassroots reach of Lagos State, we are establishing a financing model that is practical, scalable, and people-centred.”
Ambrose-Medebem noted that the initiative goes beyond providing loans, adding that beneficiaries will also receive mentorship, market access support, business development services, and institutional support.
According to her, the programme aligns with the economic agenda of Governor Babajide Sanwo-Olu’s administration to formalise businesses, stimulate industrial growth, reduce unemployment, and empower women and youth-led enterprises in Lagos.
She stressed that accountability and measurable impact would remain central to the implementation of the scheme, stating that every naira disbursed must contribute to business expansion, job creation, and improved livelihoods.
The commissioner added that MCCTI and BOI would continue to monitor the programme closely to ensure efficiency, compliance, and long-term sustainability.
She also urged cooperative societies and MSMEs interested in the programme to take the opportunity seriously by maintaining sound financial practices and using the funds responsibly.
Permanent Secretary of MCCTI, Babatunde Onigbanjo, called on all stakeholders involved in the initiative to remain committed to ensuring the programme delivers real economic impact across communities and industries in Lagos State.
“Together, through strong partnerships, accountability, and collective action, we can build a more resilient MSME ecosystem and create greater economic opportunities for present and future generations,” he said.
Also speaking at the event, Regional Manager, South West, BOI, Richard Imonije, and Project Manager at Sterling Bank Plc, Paul Olatoye, pledged the support of their institutions towards the success of the initiative.
Chief Executive Officer of Watershed Capital Limited, Dr. Olumuyiwa Olanrewaju, also commended the Lagos State Government for the opportunity and expressed confidence that the programme would positively impact small businesses across the state.
The government is expected to begin the call for applications from interested cooperative societies and MSMEs in the coming phase of the programme rollout.
