Lagos launches N10bn finance scheme for small businesses, targets job creation

By Adeola Ogunrinde

Lagos State Governor, Babajide Sanwo-Olu, has launched a N10 billion finance initiative to support Micro, Small, and Medium Enterprises (MSMEs) through a co-funding arrangement between the state government and the Bank of Industry (BOI). The programme, tagged LASG-BOI MSME Access to Finance Scheme (LASMECO), was unveiled alongside the signing of a Memorandum of Understanding (MoU) in Alausa, Ikeja.

Sanwo-Olu described the launch as a lifeline for entrepreneurs with the skills but lacking capital to grow. He said the initiative would open new opportunities and help strengthen the state’s economy. “It is not just a financing programme—it’s the lighting of thousands of small candles that will illuminate the path to a more prosperous and inclusive Lagos,” he said.

The fund offers loans of up to N10 million at a 9% annual interest rate. It is non-collateralised and guaranteed by Sterling Bank, the state government, and cooperative societies. The scheme targets strategic sectors such as healthcare, agriculture, manufacturing, creative industries, and the circular economy—sectors that align with Lagos’ developmental priorities.

The governor emphasised that the initiative aims to drive inclusive development and economic sustainability. “We envision a future Lagos as a global economic hub where every willing citizen can achieve their potential,” he said. He added that 90% of Lagos’ entrepreneurs fall within the MSME bracket, making their support crucial to the state’s long-term vision.

Sanwo-Olu stressed that the initiative would also help fight poverty and create over 10,000 jobs, while calling for stronger public-private partnerships. “When the public sector’s will meets private sector innovation, the synergy can unlock tremendous value,” he noted.

He urged Lagosians to patronise locally made products, stating that supporting indigenous businesses is essential for driving long-term growth. “This is the sure path to economic prosperity,” he said.

Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose, called the programme a “landmark moment” that would empower businesses and centre home-grown enterprises in Lagos’ economic future. She said beneficiaries would also have access to training, mentoring, and market linkage.

Managing Director of BOI, Olasupo Olusi, described the fund as a strategic move to unlock the creativity and resilience of MSMEs in Lagos. “This programme is about access, opportunity, and inclusion,” he said, adding that it would dismantle long-standing barriers to funding for small businesses.