The Lagos State Government, in partnership with the Bank of Industry (BOI) and Sterling Bank Plc, has launched a N10 billion loan scheme to provide financial support to Micro, Small, and Medium Enterprises (MSMEs) across the state.
Speaking at the signing of the Memorandum of Understanding (MoU) for the Lagos State Access to Finance for SMEs through Cooperatives on Wednesday in Lagos, Olasupo Olusi, managing director of BOI, described the initiative as a landmark development for entrepreneurs in the state.
“This strategic effort will unlock the creativity, resilience, and potential of Lagos MSMEs by dismantling the structural barriers that have long constrained access to opportunity,” Olusi said.
He emphasised BOI’s commitment to supporting MSMEs, describing them as the engine of economic growth, driving innovation, generating employment, and expanding opportunities. However, he noted that without access to finance, their potential remains largely untapped.
Olusi revealed that BOI currently holds investments worth over N500 billion in Lagos State, more than in any other state in the country.
He added that the new initiative aims to eliminate the long-standing challenges faced by entrepreneurs by offering accessible, collateral-free loans that will enable them to scale their businesses.
The scheme will prioritise key sectors critical to the state’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy.
Beyond funding, the programme will also provide mentorship, training, and digital tools to enhance the sustainability and growth of beneficiary businesses.
Olusi further highlighted that the entire process—from application to disbursement—is fully technology-enabled, ensuring speed, transparency, and accountability.
Entrepreneurs can access up to N10 million at a 9% interest rate without the need for collateral, as 50% of the fund is backed by a bank guarantee to mitigate lending risk.
Governor Babajide Sanwo-Olu, who was present at the event, urged beneficiaries to utilise the funds responsibly to grow their businesses and ensure timely repayment, so others can benefit from the opportunity.
Lagos State Access to Finance for SMEs through Co-operatives (LASMECO) programme.
