The Lagos State Government has commenced a three-day Accelerator Training Workshop under the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) programme to improve access to affordable financing for Micro, Small and Medium Enterprises (MSMEs) through a cooperative-driven model.
Speaking at the opening ceremony held at the Bank of Industry (BOI) office in Lagos, the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folashade Bada Ambrose-Medebem, represented by the Director of Cooperative Services, Dr. Adeyinka Adeyemi, described the workshop as a major step towards implementing the programme. She said the 17 accredited Accelerator Organisations, alongside the Ministry, BOI, Sterling Bank and cooperative stakeholders, will play a key role in helping MSMEs access single-digit loans.
The Commissioner noted that many small businesses struggle to obtain affordable credit due to high lending rates, strict collateral requirements and limited access to formal financial institutions. She explained that LASMECO addresses these challenges by using registered cooperative societies as financial intermediaries, allowing eligible MSMEs to access loans of up to ₦10 million at a fixed 9% annual interest rate without the traditional collateral barriers.
She added that the financing model includes a 10% cash contribution from borrowers, a 25% guarantee from cooperative societies, and a 50% guarantee from Sterling Bank, while the Lagos State Government and the Bank of Industry jointly provide the loan funds. Beyond financing, the programme also aims to formalise informal businesses through cooperative membership and is introducing a digital cooperative registry to improve transparency, accountability and monitoring.
Mrs. Bada Ambrose-Medebem urged the Accelerator Organisations to maintain high standards in recruiting, mentoring and preparing MSMEs, noting that their performance will be assessed based on loan recovery, business growth, job creation and compliance with programme guidelines.
Also speaking, the Permanent Secretary of the Ministry, Mr. Babatunde Onigbanjo, represented by the Director of Administration and Human Resource, Mr. Adeniyi Oladipupo, said the workshop marks the transition from policy to implementation. He explained that participants will receive training on beneficiary recruitment, loan processing, cooperative operations, credit readiness, monitoring and reporting.
He emphasised that Accelerator Organisations are responsible for identifying qualified MSMEs, strengthening their business capacity, ensuring proper documentation and providing post-loan support. He also stressed that all beneficiaries must belong to registered cooperative societies and warned participants against collecting unauthorised fees, stating that approved charges are only deductible after successful loan disbursement.
According to the Permanent Secretary, LASMECO is a strategic initiative designed to strengthen the MSME sector, promote business formalisation, expand financial inclusion and drive inclusive economic growth in line with the development agenda of the Babajide Sanwo-Olu administration.