Lagos: The Managing Director, Bank of Industry (BoI), Dr Olasupo Olusi, has described its tripartite agreement with the Lagos State Government and Sterling Bank Plc’s Micro, Small and Medium Enterprises (MSMEs) as a new chapter for entrepreneurs in the state. Olusi said this at the signing of the Memorandum Of Understanding (MOU) of the Lagos State Access to Finance for SMEs through Cooperatives on Wednesday in Lagos. He said the development would spur access, opportunity, and inclusion for entrepreneurs in Lagos.
According to News Agency of Nigeria, the development comes as a groundbreaking partnership bringing together the public and private sectors in a shared mission to empower entrepreneurs. Olusi stated that the strategic initiative would enhance the potential of Lagos’ MSMEs by dismantling structural barriers that had long constrained access to opportunity. Olusi revealed that BoI currently had over N500 billion in investment footprints across Lagos State, which was more than any other state in Nigeria. This development, he asserted, reflected the bank’s longstanding confidence in the energy, resilience, and entrepreneurial spirit of the Lagos people.
Olusi emphasized that this strategic effort would unlock the creativity and potential of Lagos’ MSMEs by addressing the barriers that have long constrained access to opportunity. He highlighted that the Bank of Industry views MSMEs as crucial for economic growth, driving innovation, creating jobs, and expanding opportunities. However, he acknowledged that without access to finance, their potential remains limited. The Government of President Bola Tinubu is focused on delivering access to finance to the MSME segment of Nigerian enterprises, and this programme is designed to change that.
The MSME scheme targets key sectors central to Lagos State’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy. Beyond the funding, the programme aims to support the entire working ecosystem built for success. The initiative is fully technology-driven, from application to disbursement, ensuring speed, transparency, and real-time impact tracking. Up to 50 per cent of the fund is backed by a bank guarantee, de-risking the lending process and building stakeholder confidence.
Access to the funds will be facilitated through certified cooperatives, ensuring structure, trust, and accountability. An accelerator programme will offer MSMEs mentorship, training, and digital tools to help them grow and compete. Under this scheme, MSMEs can access up to N10 million at a single-digit interest rate of nine per cent per annum, without collateral. This removes one of the biggest obstacles facing small businesses and brings inclusive finance within real reach. The N10 billion fund is the first part of a scalable, performance-based agreement, and as goals are met, the fund can grow, fostering continuous growth and empowerment.
The Governor of Lagos State, Mr Babajide Sanwo-Olu, in his remarks, lauded the BoI and Sterling Bank for the partnership. Sanwo-Olu charged beneficiaries to use the funding to grow their businesses and repay on schedule to engender more access to funding opportunities. He reiterated the state government’s commitment to creating an environment that supports the growth and development of MSMEs.