Lagos State Launches N10 Billion Fund to Support SMEs through Cooperatives

Lagos State has officially launched the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO), a groundbreaking initiative aimed at promoting inclusive economic growth by unlocking capital for Micro, Small, and Medium Enterprises (SMEs) operating at the grassroots level.

The initiative, a collaboration between the Lagos State Government, BOI Nigeria, and Sterling Bank, has introduced a N10 billion fund, offering non-collateral loans of up to ₦10 million at an annual interest rate of 9%.

The loans, which come with a 6-month moratorium, will be distributed through verified cooperative societies, ensuring both scale and accountability while making a meaningful impact on local communities.

Governor Babajide Sanwo-Olu emphasized that this program is not just about providing financial support but about dismantling the systemic barriers that have prevented many entrepreneurs from reaching their full potential. “From a tailor in Yaba to a food processor in Ikorodu, LASMECO gives them a fair chance to grow based on their ideas, not their assets,” he stated, highlighting the initiative’s commitment to empowering entrepreneurs across all sectors of the economy.

The fund will target key sectors such as healthcare, agriculture, the creative economy, manufacturing, and the circular economy, all crucial drivers of sustainable growth. By focusing on these sectors, the initiative aims to foster stronger communities and promote long-term economic development across Lagos State.

This public-private collaboration represents a significant step towards empowering SMEs and reinforcing the foundation of a more resilient and inclusive economy in Lagos. The initiative underscores the belief that prosperity can be achieved by empowering entrepreneurs at the grassroots level.