Lagos: Gov. Babajide Sanwo-Olu of Lagos State has unveiled the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) to provide access to finance for Small and Medium Scale Enterprises (SMEs) and registered cooperative societies in the state. Sanwo-Olu unveiled the initiative at the Adeyemi Bero Auditorium, Alausa, Ikeja, in partnership with Bank of Industry (BoI) and Sterling Bank Ltd. He said the tripartite initiative was designed to break the funding barrier to enable SMEs to access up to N10 million at a single-digit interest of nine percent per annum without collateral.
According to News Agency of Nigeria, LASMECO is a first-of-its-kind public-private financing platform that aims to deliver low-interest, risk-mitigated loans to SMEs across strategic sectors, including healthcare, agriculture, creative industries, manufacturing, and circular economy clusters. The initiative is seen as a game changer that will accelerate access to finance for SME business owners in the state by providing a loan of up to N10 million at nine percent interest rate for two to three years. The governor advised the beneficiaries to use the money to grow their businesses judiciously.
Sanwo-Olu expressed optimism about the future of Lagos, highlighting the significance of the initiative. He recounted a story about a young woman named Bisola from Alimosho, who ran a small tailoring business. With the help of a Lagos State support scheme, Bisola accessed a low-interest loan, which allowed her to expand her business. The governor emphasized that there were many others like Bisola who would benefit from the scheme. He commended the contribution of the informal sector to economic growth and development, noting that MSMEs account for almost 96 percent of businesses in Nigeria and nearly half of the GDP.
The Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folasade Ambrose-Madebem, described the initiative as a revolutionary financing scheme for MSMEs, providing a single digit non-collateralized loan. She stated that the loan would unlock the next generation of entrepreneurs in the state and create globally competitive enterprises.
The Managing Director of BoI, Dr. Olasupo Olusi, highlighted the bank’s partnership with Lagos State to ensure access to finance for MSMEs as a means to tackle poverty and guarantee economic growth in communities. The event’s highpoint was the signing of the Memorandum of Understanding on the initiative between the Lagos State Government, Bank of Industry, and Sterling Bank.