The Lagos State Government has launched a new financing initiative aimed at unlocking growth for micro, small, and medium enterprises (MSMEs) operating at the grassroots level. Known as the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO), this innovative scheme is the latest in a series of interventions designed to strengthen local businesses and deepen community-based economic development.
The LASMECO initiative is being implemented in collaboration with the Bank of Industry and Sterling Bank. Through this partnership, the government has established a N10 billion fund targeted specifically at MSMEs across key sectors of the economy. The financing package offers qualified businesses up to N10 million in loans, without requiring traditional collateral. These loans are to be accessed through duly registered and verified cooperative societies.
One of the standout features of this scheme is its business-friendly terms. Beneficiaries will enjoy a nine percent annual interest rate, along with a six-month moratorium period before repayment begins. This structure is aimed at giving business owners time to stabilize and scale before taking on the financial burden of repayment.
The cooperative model being employed ensures that the programme reaches MSMEs in a way that balances both scale and accountability. By working through cooperatives, the fund taps into existing community structures to verify, support, and monitor beneficiaries. This method not only increases trust and transparency but also ensures that the funds reach those who need them most—real businesses operating in local communities.
The LASMECO scheme is designed to support businesses in five strategic sectors known to drive inclusive and sustainable growth. These include healthcare, agriculture, the creative economy, manufacturing, and the circular economy. By focusing on these areas, the Lagos State Government aims to encourage innovation, improve local production capacity, and generate decent employment at the grassroots level.
This launch marks another important step in Lagos State’s broader strategy to empower small businesses and enhance economic resilience. The government has repeatedly emphasized the role of MSMEs in job creation, poverty reduction, and community stability. Through LASMECO, it is not only providing funding but also reinforcing the idea that inclusive financing is a vital pillar for long-term development.
Beyond LASMECO, MSMEs in Lagos are also encouraged to take advantage of the Lagos State Employment Trust Fund (LSETF) MSME Loan Programme. This separate initiative remains open for applications and continues to offer funding opportunities for entrepreneurs who meet the eligibility criteria.
If you are a small business owner in Lagos and you have not yet explored the financing opportunities available through LSETF, now is the time to act. These programmes are designed to reduce your capital burden and position your business for sustainable success.
To learn more or apply for the LSETF MSME loan programme, visit: https://lsetf.ng/content/msme-loan-programme
With these initiatives, Lagos is sending a strong message: the future of its economy lies in the hands of those building businesses in every corner of the state. And with the right support, those businesses can thrive.
