Lagos Partners with Banks to Empower 10,000 MSMEs with Loans Up to N10m
The Lagos State Government has launched a new initiative to support Micro, Small, and Medium Enterprises (MSMEs) with access to affordable funding. In partnership with the Bank of Industry (BOI) and Sterling Bank, the state introduced the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, also known as LASMECO.
This scheme will give MSMEs access to single-digit interest loans — just 9% per annum, with no collateral required, and funding of up to N10 million. The goal is to create 10,000 jobs, reduce poverty, and encourage economic growth in key sectors like healthcare, agribusiness, manufacturing, the digital economy, and creative industries.
Key Features of LASMECO
Loans up to ₦10 million
9% interest rate per annum
No collateral required
Access through certified cooperatives
Mentorship, training, and digital tools included
50% of funds backed by bank guarantee to reduce risk
Governor Babajide Sanwo-Olu described the initiative as a “game-changer” for entrepreneurs, saying it breaks down long-standing barriers MSMEs face in accessing funding.
How to Benefit from the LASMECO Scheme
To access this loan scheme, interested MSMEs should follow these steps:
Join a Certified Cooperative Society
Access to the loan will be provided through certified cooperatives in Lagos. Entrepreneurs are advised to register or become active members of a recognized and approved cooperative society.
Get Registered as a Business
Ensure your business is properly registered with the Corporate Affairs Commission (CAC) and has a Tax Identification Number (TIN).
“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 per cent per annum.”
— Babajide Sanwo-Olu, Governor of Lagos State
Prepare a Solid Business Plan
Have a well-documented business plan detailing how the loan will be used, expected outcomes, and a repayment strategy.
Apply Through the Official Platform
The scheme is technology-driven. Applications will be done online to ensure transparency and speed. Watch for the official application portal through the Lagos State Ministry of Commerce, Industry and Investment or Bank of Industry platforms.
Participate in Training and Mentorship
Selected businesses will undergo training and accelerator programmes to improve their capacity and business performance.
This initiative comes at a time when MSMEs in Lagos are struggling with high lending rates and limited financial access. With LASMECO, small businesses can now grow with affordable loans, structured support, and business development tools. Entrepreneurs are encouraged to join certified cooperatives and prepare to apply when the portal opens.
