The Lagos State Government, in collaboration with the Bank of Industry and Sterling Bank, has launched a new initiative to support Micro, Small, and Medium Enterprises.

In a statement on Wednesday, this partnership, formalized through a Memorandum of Understanding, will offer MSMEs access to single-digit loans at a 9% interest rate, aimed at fostering business growth and driving job creation.

The initiative, called the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme, was officially launched in a ceremony organized by the Lagos State Ministry of Commerce, Industry, and Investment.

At the event, Lagos State Governor, Babajide Sanwo-Olu, highlighted the crucial role of public-private partnerships in fostering economic growth and supporting local businesses.

Sanwo-Olu referred to the collaboration as “a living example of synergy,” emphasizing that the scheme would provide MSMEs with crucial access to affordable credit and training.

He introduced the program as “LASMECO,” a public-private financing platform aimed at overcoming the challenges that have historically hindered the growth of small businesses in Lagos.

“This programme is the first of its kind in our state, and it is designed to address the challenges faced by MSMES. For the first time, thousands of entrepreneurs in Lagos will have access to loans of up to N10m at an interest rate of just nine per cent per annum,” Sanwo-Olu said.

He highlighted that the initiative would greatly ease the financial challenges faced by small business owners, particularly those dealing with high lending rates.

The Managing Director and CEO of the Bank of Industry, Dr. Olasupo Olusi, also addressed the ceremony, stating that the MoU signing marks the beginning of a transformative era for MSMEs in Lagos.

He emphasized that the partnership would tap into the creativity, resilience, and potential of small businesses by providing access to financial resources and removing structural barriers.

Olusi further explained that the program aims to create 10,000 jobs through enterprise development, driving wealth creation, expanding MSME support, and reducing poverty in the state. He reiterated that MSMEs play a vital role in fostering economic growth, innovation, and job creation.

“In a country like ours, where MSMEs are the backbone of the economy, access to finance is crucial. This initiative is designed to provide that access, particularly for MSMEs in sectors vital to Lagos State’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” Olusi said.

According to the statement, the scheme is fully technology-driven, ensuring speed, transparency, and real-time impact tracking. Up to 50 per cent of the fund is backed by a bank guarantee, which will reduce the risks associated with lending and increase confidence among stakeholders.

The funds will be accessible through certified cooperatives, ensuring proper structure and accountability. Additionally, the scheme will include an accelerator program that provides mentorship, training, and digital tools to support the growth and market competitiveness of MSMEs.

Through this scheme, MSMEs in Lagos can access loans of up to N10 million with no collateral required, at a competitive interest rate of nine percent. The program is designed to offer comprehensive support to entrepreneurs, equipping them with the resources, training, and guidance necessary for success.

This initiative is timely for MSMEs in Nigeria, providing a vital lifeline to small businesses and supporting the broader goal of economic recovery and growth in the state.