Sanwo- Olu Launches 10b Naira Matched Fund To Empower MSMEs

Lagos State Governor, Babajide Sanwo-Olu has launched a 10 billion naira matched funding jointly provided by the State Government and the Bank of Industry (BOI), to empower MSMEs and enable them expand their businesses.

At the formal signing of the MOU and launch of LASG – BOI MSME Access to Finance Scheme, (LASMECO) at Alausa, Ikeja, on Wednesday, 7th May, 2025, Governor Sanwo-Olu described the launch as a fulfillment of dreams for many MSMEs who have skills but lack the capital to run or scale their businesses, saying the fund will bring a turnaround in their fortune and expand the State’s economy.

His words: “The launch of the joint initiative between the Lagos State Government, Bank of Industry, and Sterling Bank MSME Fund, is not just a formal unveiling of a financing programme, it is the unveiling of dreams, the lighting of thousands of small candles that together illuminates the path to a more prosperous and inclusive Lagos.

“Today, we proudly unveil a tri-partite partnership called “LASMECO,” a first-of-its-kind public-private financing platform deliberately designed to break the barriers that have long stifled our small businesses. It offers an affordable credit of up to 10 million naira at a low interest rate of 9 percent per annum single-digit interest to lift huge weight off the shoulders of our business owners, giving them room to breathe, grow, and thrive.

” The loan is guaranteed by Sterling Bank Plc, the State Government and the Cooperative Societies, it is non-collateralised and focus on strategic sectors such as healthcare, agriculture, creative industries, manufacturing, and the circular economy – areas that align with our developmental priorities.

“By empowering these specific sectors, we are hitting multiple targets – jobs, innovation, food security, better healthcare, environmental sustainability – all at once. This is aligned with our vision of inclusive and sustainable development. It is also based on cooperative model, leveraging the power of cooperative societies.”

Sanwo-Olu further called on Lagosians to patronise locally made goods as it is the sure path to economic growth and prosperity.

Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose, described the event as a new chapter and a landmark moment in the administration’s drive to build a 21st-century economy that not only empowers businesses to thrive, but places our home-grown enterprises at the centre of prosperity, innovation, and resilience.

“The financing scheme will empower thousands of MSMEs with structured, low-interest, and accessible credit facilities, tailored to the unique realities of doing business in Lagos. Each of the sectors was chosen deliberately, they all represent areas where Lagos has both a competitive advantage and an urgent development need.

“The vision of the administration, as captured in the T.H.E.M.E.S+ Development Agenda, is to transform Lagos into a modern megacity where innovation, productivity, and opportunity are accessible to all. This event is, therefore, more than unveiling of a finance scheme, it is a declaration that Lagos State believes in the power of small businesses to transform the economy. It is a message that access to finance should be a right and support system for every bold dreamer and hard-working entrepreneur willing to take a risk and create value,” she said.

Managing Director/CEO, Bank of Industry, Olasupo Olusi, described the programme as not just a signing ceremony, but the beginning of a new chapter for MSMEs in Lagos, defined by access, opportunity, and inclusion. He declared it a strategic effort that will unlock the creativity, resilience, and potential of Lagos’ MSMEs by dismantling the structural barriers that have long constrained access to opportunity.