Lagos State Government, in collaboration with the Bank of Industry and Sterling Bank, has launched a new initiative aimed at empowering Micro, Small, and Medium Enterprises with access to affordable finance and support.

In a statement on Wednesday, the partnership, sealed with the signing of a Memorandum of Understanding, aims to provide MSMEs with single-digit loans, at an interest rate of just nine per cent, to foster growth and job creation.

The initiative, named the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, was launched in a ceremony coordinated by the Lagos State Ministry of Commerce, Industry, and Investment.

Speaking at the event, Lagos State Governor, Babajide Sanwo-Olu, emphasised the importance of public-private partnerships in driving economic growth and supporting local businesses.

Sanwo-Olu described the collaboration as “a living example of synergy,” pointing out that the scheme would serve as a vital platform for MSMES to access affordable credit and training.”

He introduced the program under the name “LASMECO,” a public-private financing platform designed to break the barriers that have long hindered the growth of small businesses 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 N10m at an interest rate of just nine per cent per annum,” Sanwo-Olu said.

He stressed that the initiative would significantly reduce the financial burdens currently faced by small business owners who often grapple with high lending rates.

The Managing Director and CEO of the Bank of Industry, Dr Olasupo Olusi, also spoke at the ceremony. He noted that the MoU signing marks the beginning of a transformative chapter for MSMEs in Lagos.

He highlighted that the partnership would unlock the creativity, resilience, and potential of small businesses by providing access to financial resources and eliminating structural barriers.

Olusi further explained that the programme would contribute to creating 10,000 jobs through enterprise development, thereby boosting wealth creation, expanding MSME support, and reducing poverty in the state. He reiterated that MSMES are crucial in driving economic growth, innovation, and job creation.

“In a country like ours, where MSMEs are the backbone of the economy, access to finance is crucial. This initiative is designed to provide that access, particularly for MSMEs in sectors vital to Lagos State’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” Olusi said.

According to the statement, the scheme is fully technology-driven, ensuring speed, transparency, and real-time impact tracking. Up to 50 per cent of the fund is backed by a bank guarantee, which will reduce the risks associated with lending and increase confidence among stakeholders.

It added that access to the funds will be facilitated through certified cooperatives, ensuring structure and accountability. Additionally, the scheme will include an accelerator programme offering mentorship, training, and digital tools to help MSMES grow and compete in the market.

Under this scheme, MSMEs in Lagos will be able to access loans of up to N10m with no collateral required, at the competitive nine per cent interest rate. The programme’s aim is to provide comprehensive support to entrepreneurs, giving them the resources, training, and guidance needed to succeed and thrive.

This initiative comes at a crucial time for MSMEs in Nigeria, offering a much-needed lifeline to small businesses and contributing to the broader goal of economic recovery and growth in the state.

The PUNCH reported that the Federal Government, through the Bank of Industry, has disbursed N2.25bn to support 16,696 Micro, Small, and Medium Enterprises in Gombe State.