Lagos State Governor Babajide Sanwo-Olu has launched a ₦10 billion cooperative financing initiative aimed at expanding access to funding for micro, small and medium-sized enterprises (MSMEs), describing cooperatives as key drivers of economic growth, poverty reduction and social stability.
Speaking at the 2026 International Day of Cooperatives celebration held at the LASCOFED Multipurpose Hall in Ogba, Ikeja, the governor said cooperatives play a vital role in creating jobs, promoting financial inclusion and fostering peaceful communities. Represented by the Permanent Secretary, Ministry of Commerce, Cooperatives, Trade and Investment, Babatunde Onigbanjo, Sanwo-Olu noted that lasting peace is built on opportunity, equity, economic security and shared prosperity.
He disclosed that Lagos has over 16,000 registered cooperative societies operating through 24 area offices, contributing significantly to grassroots development.
The governor highlighted the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO) scheme, which allows qualified cooperative-based businesses to access loans of up to ₦10 million without traditional collateral. He revealed that the first ₦5 billion tranche of the fund was released last month, describing the initiative as the largest cooperative-led MSME financing programme in the ministry’s history. He added that LASMECO has been adopted by the National Council on Industry, Trade and Investment as a model for MSME financing across Nigeria.
Implemented in partnership with the Bank of Industry and Sterling Bank, the scheme offers a single-digit interest rate of nine per cent, a six-month moratorium and a 36-month repayment period through a digital platform designed to ensure transparency.
Sanwo-Olu also highlighted other initiatives, including the Lagos State Industrial Policy (2025–2030), the expansion of the Lagos State Cooperative College (LASCOCO), and enhanced regulatory oversight in collaboration with the Police Special Fraud Unit to safeguard cooperative members’ funds.
He urged cooperative leaders to uphold transparency, innovation and digital transformation, stressing that the success of cooperatives should be measured by the number of lives improved through business growth, home ownership, education and economic empowerment.
Also speaking, Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, represented by the ministry’s Director of Cooperatives, Dr. Adeyinka Adeyemi, described cooperatives as powerful tools for inclusive economic growth, poverty reduction and sustainable development. She reaffirmed the state’s commitment to strengthening regulation, expanding financial inclusion and deepening partnerships to support the sector.
President of the Lagos State Cooperative Federation (LASCOFED), Oladipo Shobule, described cooperatives as socio-economic stabilisers that promote economic justice, reduce inequality and create opportunities that naturally foster peace. He also announced the launch of LASCOFED’s Online CoopRadio platform to improve cooperative education and member engagement, while calling on members to support the federation’s proposed Cooperative Centre in Mojoda, Epe, through its ₦1,000 development levy.