In a major push to foster economic growth and support local businesses, the Lagos State Government, in collaboration with the Bank of Industry (BOI) and Sterling Bank, has launched a groundbreaking initiative aimed at empowering Micro, Small, and Medium Enterprises (MSMEs). The newly established partnership will provide MSMEs with access to affordable finance, offering single-digit loans at an attractive interest rate of just nine percent per annum. This initiative is set to create 10,000 jobs, boosting the local economy and fostering entrepreneurial growth in Lagos State.
Unveiled on May 7, 2025, the initiative, known as the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, was officially launched with the signing of a Memorandum of Understanding (MoU). The scheme is designed to provide much-needed financial support to MSMEs, enabling them to thrive in an increasingly competitive market.
At the heart of the initiative is the provision of affordable loans of up to N10 million for MSMEs, which can be accessed at a favorable interest rate of just nine percent. This marks a significant departure from the high-interest rates that many small businesses have traditionally faced when seeking loans from financial institutions.
During the launch event, Lagos State Governor Babajide Sanwo-Olu stressed the importance of public-private partnerships in driving economic growth. He described the collaboration as a “living example of synergy,” underlining how the initiative would empower entrepreneurs with both financial resources and essential business training. Sanwo-Olu further introduced the program under the name “LASMECO” – a public-private financing platform designed to address long-standing barriers to the growth of MSMEs in Lagos.
“This programme is the first of its kind in our state, and it is designed to address the challenges faced by MSMEs. For the first time, thousands of entrepreneurs in Lagos will have access to loans of up to N10 million at an interest rate of just nine percent per annum,” Sanwo-Olu said.
The governor also emphasized that the scheme would alleviate the financial burdens that many small businesses face due to high lending rates, which often stifle growth and innovation.
Dr. Olasupo Olusi, the Managing Director and CEO of the Bank of Industry, also spoke at the event, highlighting the significant impact the scheme would have on the growth of small businesses in Lagos. Olusi described the partnership as a game-changer for MSMEs in the state, noting that it would unlock the potential of local businesses by offering them financial support and eliminating many structural barriers to growth.
“Access to finance is crucial for MSMEs, especially in sectors vital to Lagos State’s development, such as healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” Olusi explained. He also pointed out that the partnership would contribute to the creation of 10,000 jobs, a crucial step towards alleviating poverty and expanding wealth in the state.
The initiative comes at a pivotal moment for the MSME sector in Nigeria, where small businesses are often seen as the backbone of the economy. The scheme’s goal is not only to provide financial support but also to offer training, mentorship, and digital tools to help entrepreneurs compete effectively in the market.
The Lagos–BOI–Sterling Bank MSME Access to Finance Scheme is designed to be fully technology-driven, ensuring efficiency, transparency, and real-time tracking of the impact. The system will allow MSMEs to access funds quickly, providing them with the financial agility needed to navigate the fast-paced business environment.
To reduce the risks associated with lending, up to 50 percent of the funds will be backed by a bank guarantee. This will help increase the confidence of stakeholders, ensuring that both lenders and borrowers benefit from the arrangement. Access to the funds will be facilitated through certified cooperatives, ensuring that businesses receive structured, accountable support.
Moreover, the scheme will include an accelerator program that offers mentorship, training, and access to digital tools designed to help MSMEs expand and enhance their operations. This holistic approach aims to ensure that businesses not only gain access to financial resources but also receive the guidance and skills necessary for long-term success.
This initiative comes at a time when MSMEs in Nigeria are facing numerous challenges, including limited access to finance, inadequate infrastructure, and tough market conditions. The Lagos–BOI–Sterling Bank MSME Access to Finance Scheme represents a critical step towards overcoming these barriers and creating a thriving environment for small businesses.
In Lagos, MSMEs are seen as key drivers of job creation, innovation, and economic growth. By providing these businesses with affordable loans and a comprehensive support system, the Lagos State Government is taking proactive steps to ensure that entrepreneurs have the tools they need to succeed.
This initiative not only holds the promise of creating thousands of jobs but also signals the state’s commitment to supporting the local business community and building a sustainable, inclusive economy for the future.
The Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme is an important milestone in the ongoing efforts to promote the growth of small businesses in Nigeria. With its emphasis on affordable financing, training, and mentorship, the initiative is set to play a key role in empowering entrepreneurs and stimulating job creation in the state. As Lagos continues to embrace innovation and public-private partnerships, the future looks promising for the thousands of MSMEs that stand to benefit from this game-changing initiative.