Gov Sanwo-Olu Unveils N10 Billion Fund To Support MSMEs In Lagos Through BOI Partnership

 

EKO NEWS

• The partnership aimed at providing MSMEs with access to finance at a single-digit interest rate of 9%, alongside training opportunities. 
• Babajide Sanwo-Olu described the MoU as a prime example of effective public-private collaboration, with the shared goal of empowering MSMEs. 
• Olusi expressed optimism that this partnership would unleash the immense potential of Lagos’ MSMEs by breaking down the long-standing structural barriers that have constrained their access to opportunities. 

The Lagos State Government, in collaboration with the Bank of Industry (BoI) and Sterling Bank, has launched a new partnership aimed at providing Micro, Small, and Medium Enterprises (MSMEs) with access to finance at a single-digit interest rate of 9%, alongside training opportunities.

The  Lagos State–BoI–Sterling Bank MSME Access to Finance Scheme Memorandum of Understanding (MoU) signing ceremony was organized by the Lagos State Ministry of Commerce, Industry, and Investment.

Speaking at the event, Lagos State Governor Babajide Sanwo-Olu described the MoU as a prime example of effective public-private collaboration, with the shared goal of empowering MSMEs.

The Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO) program, a tripartite initiative between the Lagos State Government, Bank of Industry (BOI), and Sterling Bank, has been launched with an initial seed funding of N10 billion.

The financing model offers single-digit interest rate loans of up to N10 million to MSMEs through their verified cooperative societies without requiring collateral.

This initiative contrasts sharply with conventional loan templates that typically provide double-digit interest rate loans with stringent collateral requirements.

During the event, Dr. Olasupo Olusi, Managing Director/Chief Executive Officer of BoI, emphasized that the MoU signing signifies more than just a formal agreement; it symbolizes the beginning of a new era for MSMEs in Lagos, characterized by enhanced access, opportunity, and inclusion.

Olusi expressed optimism that this partnership would unleash the immense potential of Lagos’ MSMEs by breaking down the long-standing structural barriers that have constrained their access to opportunities.

He envisions that the program will stimulate enterprise development, leading to the creation of 10,000 jobs, unlocking wealth within Lagos, and ultimately reducing poverty through increased MSME support.

He said: “At the Bank of Industry, we believe MSMEs are the engine of economic growth—driving innovation, creating jobs, and expanding opportunities. However, we also know that without access to finance, their potential remains limited.

“This is why the government of President Bola Tinubu is focused on delivering access to finance to the MSME segment of Nigerian enterprises. This programme is designed to change that.

It targets key sectors that are central to Lagos State’s development, including healthcare to strengthen systems and spark medical innovation; manufacturing to boost local production and industrial capacity; agribusiness to improve food security and rural livelihoods; creative industries to grow our cultural and artistic economy, and digital economy to unlock youth-led innovation and enterprise.”