Lagos Unveils ₦5 Billion Financial Boost for Small and Medium-Sized Enterprises

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Folashade-Ambrose-Medebem

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By Olasunkanmi Akoni

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The Lagos State Government has released ₦5 billion to support small businesses under its flagship MSME financing programme, LASMECO, as part of efforts to expand access to funding for entrepreneurs and cooperative-based enterprises across the state.

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Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, revealed this on Wednesday, at the ongoing ministerial press briefing to commemorate the seventh anniversary of Governor Babajide Sanwo-Olu’s administration and Deputy, Dr. Obafemi Hamzat, held at Alausa, Ikeja.

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According to Ambrose-Medebem, the State Government launched the LASG-BOI Access to Finance for MSMEs through Cooperatives programme, popularly known as LASMECO, in May 2025 as a strategic intervention aimed at strengthening small and medium-scale businesses.

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She explained that the programme was seeded with ₦10 billion and structured to provide up to ₦10 million non-collateralised loans to qualifying cooperative-based MSMEs at a single-digit interest rate of nine per cent annually.

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“The State has released ₦5 billion as part of the matched funding,” Ambrose-Medebem said.

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She added that beneficiaries under the scheme would enjoy a six-month moratorium and a 36-month repayment period designed to ease financial pressure on small businesses.

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The commissioner described LASMECO as one of the state government’s major economic empowerment initiatives targeted at boosting entrepreneurship, productivity and job creation across Lagos.

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According to Ambrose-Medebem, accelerator partners for the programme were formally onboarded during a signing ceremony hosted by the ministry on May 12, 2026.

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She further disclosed that the programme was being implemented through an integrated cooperative digitalisation Special Purpose Vehicle involving the Ministry of Commerce, Cooperatives, Trade and Investment, Asset Matrix Microfinance Bank, SEKAT, QooP and Imade Forte.

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Ambrose-Medebem noted that LASMECO had already gained national recognition after it was unanimously adopted at the 16th National Council on Industry, Trade and Investment as a model framework for MSME financing reforms across Nigeria.

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She said the administration of Governor Babajide Sanwo-Olu remained committed to creating a business-friendly environment through access to finance, industrial reforms, trade expansion and investment promotion.

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The commissioner added that the government would continue the gradual rollout of LASMECO to more eligible cooperative-based MSMEs as part of efforts to deepen financial inclusion and stimulate grassroots economic growth across the state.

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