Sanwo-Olu bets on digital cooperatives to unlock MSME financing, scales up N10bn LASMECO scheme

Lagos State Governor Babajide Sanwo-Olu has unveiled an ambitious digital transformation agenda for cooperative societies, positioning technology-enabled cooperatives as a key vehicle for expanding access to finance for micro, small and medium-sized enterprises (MSMEs), while strengthening transparency, governance and financial inclusion across the state.

The strategy is anchored on the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO), a N10 billion financing initiative established in partnership with the Bank of Industry and Sterling Bank to provide affordable credit to cooperative-backed businesses.

Speaking at the 2026 International Day of Cooperatives celebration in Lagos, Sanwo-Olu said cooperatives remain one of the state’s most effective platforms for grassroots economic empowerment and inclusive growth.

The governor, who was represented by Babatunde Onigbanjo, permanent secretary, Ministry of Commerce, Cooperatives, Trade and Investment, noted that the government has released the first N5 billion tranche of the fund and onboarded 19 accelerator partners to facilitate loan disbursements to qualified beneficiaries.

Under the scheme, eligible MSMEs can access loans of up to N10 million without conventional collateral at a single-digit interest rate of nine percent per annum, with a six-month moratorium and a repayment period of up to 36 months.

Sanwo-Olu described LASMECO as the largest cooperative-led MSME financing intervention undertaken by the Ministry of Commerce, Cooperatives, Trade and Investment, noting that the initiative has been adopted by the National Council on Industry, Trade and Investment as a model for MSME financing reforms across Nigeria.

A key feature of the programme, he said, is the deployment of an integrated digital platform that enables transparent loan administration, real-time monitoring of beneficiaries and improved accountability.

“The programme is being delivered through an integrated cooperative digitalisation platform, ensuring every disbursement is transparent and every beneficiary is properly tracked,” the governor said.

He urged cooperative societies across Lagos to embrace digital technologies, stressing that digitalisation would improve operational efficiency, strengthen corporate governance, widen access to finance and enhance service delivery to members.

According to him, the state’s digital agenda is also reshaping cooperative education through the Lagos State Cooperative College (LASCOCO), which has expanded its curriculum to include entrepreneurship development under its 2025–2029 strategic plan.

The institution recently graduated its second cohort of 153 students.

Sanwo-Olu said the state’s 2025–2030 Industrial Policy would further create opportunities for cooperatives and MSMEs operating in manufacturing, agro-processing, healthcare, the creative economy, digital trade and the blue economy.

He noted that the initiatives align with the state’s T.H.E.M.E.S+ Development Agenda and the Lagos State Development Plan 2052, both of which prioritise enterprise development, job creation and inclusive economic participation.

The governor disclosed that Lagos has more than 16,000 registered cooperative societies operating through 24 Area Cooperative Offices, making the movement one of the largest grassroots economic networks in the state.

He, however, stressed that sustaining public confidence in cooperatives would require stronger governance and accountability. To this end, he said the government has strengthened regulatory oversight and partnered with the Police Special Fraud Unit to combat fraud and safeguard members’ investments.

In his remarks, Oladipo Shobule, president of the Lagos State Cooperative Federation (LASCOFED), announced the official launch of the LASCOFED Online CoopRadio, a digital broadcasting platform dedicated to cooperative education, advocacy and member engagement.

Shobule said the platform, which underwent a four-month pilot phase, would strengthen communication among cooperators, promote financial literacy and accelerate the federation’s digital transformation agenda.

Earlier, Folashade Bada Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade and Investment, described cooperatives as critical drivers of inclusive economic growth, noting that more than 16,000 community-based thrift and credit societies, alongside numerous multipurpose cooperatives, are expanding access to finance, supporting entrepreneurship, creating jobs and deepening financial inclusion across Lagos.

Represented by Adeyinka Adeyemi, director of Cooperatives in the ministry, the commissioner said the government has intensified reforms aimed at strengthening the cooperative ecosystem through improved regulation, enhanced transparency, expanded market access, youth participation and strategic partnerships with financial institutions and development agencies.