The Lagos State Government says eligible Micro, Small and Medium Enterprises (MSMEs) will access loans of up to N10 million at a single-digit interest rate of nine per cent per annum.
The loans will be provided under the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) programme.
The Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, disclosed this at the opening of a three-day accelerator training workshop on Monday.
The News Agency of Nigeria (NAN) reports that the workshop was organised to prepare partner organisations for the implementation of the programme.
Ambrose-Medebem said LASMECO was designed to bridge the financing gap confronting MSMEs by providing affordable loans through registered cooperative societies, rather than conventional collateral.
She said the programme would provide term loans of up to 36 months, including a six-month moratorium, and working capital loans of up to 24 months, with a three-month moratorium.
She said the initiative was backed by counterpart funding from the Lagos State Government, matching funds from the Bank of Industry (BOI) and operational support from Sterling Bank.
According to her, MSMEs account for about 80 per cent of employment and approximately 75 per cent of Lagos State’s Gross Domestic Product (GDP).
The commissioner said, however, that many MSMEs remained excluded from formal credit due to high lending rates and collateral requirements.
“LASMECO is built on the principle that registered cooperative societies can provide a credible alternative to conventional collateral, making affordable financing accessible to more businesses,” she said.
Ambrose-Medebem said the programme would prioritise agriculture, manufacturing, healthcare, the digital economy, creative industries, environmental sustainability and education.
She urged the 17 accelerator organisations participating in the workshop to identify viable businesses, prepare them to bankable standards and monitor beneficiaries to ensure strong loan repayment performance.
She said the ministry was also digitising the state’s cooperative registry to improve transparency, beneficiary verification and programme monitoring.
She added that, although Lagos had more than 13,000 registered cooperative societies, only between 1,900 and 2,200 were currently active, creating opportunities to revitalise dormant cooperatives through the programme.
Earlier, the Permanent Secretary in the ministry, Mr Babatunde Onigbanjo, said the three-day workshop would equip accelerator organisations with the practical knowledge required to recruit, screen, mentor and prepare MSMEs for financing.
He said participants would receive hands-on training in beneficiary recruitment, credit readiness, loan documentation, monitoring and reporting to ensure seamless implementation of LASMECO.
Onigbanjo said that accelerator organisations would only earn support fees when their nominated businesses successfully secured funding.
He described the arrangement as an accountability measure that would reward performance.
He also warned that applicants must not be charged application, training or evaluation fees, noting that violations of the programme guidelines would attract sanctions.
The permanent secretary urged participants to build strong partnerships with BOI, Sterling Bank and the ministry to ensure the successful rollout of the programme.
A participant, a Customer Care Officer at BOI, Mrs Omotayo Babalola, said that the training would better equip her to identify challenges relating to documentation, loan applications, disbursement processes and repayment procedures.
“It will enable me to direct customers to the appropriate channels for prompt resolution of their enquiries. (NAN)
