MSMEs receive N5bn lifeline as Lagos targets growth 

The Lagos State Government has released N5 billion as part of its counterpart funding for cooperative-based Micro, Small and Medium Enterprises (MSMEs) operating in the state.

The intervention is being implemented under the Lagos State Government–Bank of Industry (LASG-BOI) Access to Finance for MSMEs scheme, also known as LASMECO, and is aimed at business growth and expansion.

The scheme, launched in May 2025, is a strategic initiative aimed at strengthening small and medium-scale enterprises, particularly cooperative-based businesses.

Folashade Bada Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade and Investment, confirmed the release of the funds at the state’s 2026 Ministerial Press Briefing held in Ikeja on Wednesday.

She explained that the programme was seeded with N10 billion and designed to provide non-collateralised loans of up to N10 million to qualified cooperative-based MSMEs at a single-digit interest rate of nine per cent per annum.

According to the commissioner, beneficiaries will also enjoy a six-month moratorium and a repayment period of up to 36 months to ease financial pressure on small businesses.
“The state has released N5 billion as part of the matched funding,” Ambrose-Medebem stated.

She described LASMECO as one of the state government’s key economic empowerment initiatives aimed at boosting entrepreneurship, enhancing productivity and creating jobs across Lagos.

Ambrose-Medebem further disclosed that accelerator partners for the programme were formally onboarded during a signing ceremony hosted by the ministry on May 12, 2026.

The programme is being implemented through an integrated cooperative digitalisation Special Purpose Vehicle involving the Ministry of Commerce, Cooperatives, Trade and Investment, Asset Matrix Microfinance Bank, SEKAT, QooP and Imade Forte.

She added that LASMECO has received national recognition after it was unanimously adopted at the 16th National Council on Industry, Trade and Investment as a model framework for MSME financing reforms across Nigeria.

The commissioner reiterated the commitment of the administration of Governor Babajide Sanwo-Olu to fostering a conducive business environment through improved access to finance, industrial reforms, trade expansion and investment promotion.

She assured that the government would continue the phased rollout of LASMECO to more eligible cooperative-based MSMEs as part of efforts to deepen financial inclusion and stimulate grassroots economic growth across the state.