1 hour ago
1
The Lagos State Government has released N5 billion in matching funds under its N10 billion financing initiative for micro, small and medium enterprises (MSMEs), while targeting six priority sectors for investment, industrial expansion and job creation.
The Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, disclosed this on Thursday during the state’s celebration of International MSME Day, outlining measures to improve access to finance, strengthen local businesses and expand their participation in domestic and international markets.
Under the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) scheme, eligible cooperative-based businesses can obtain loans of up to N10 million at an annual interest rate of nine per cent, without collateral. The facilities come with a six-month moratorium and repayment periods of up to 36 months.
The scheme is being implemented in partnership with the Bank of Industry and Sterling Bank, with a digital platform designed to track disbursements and beneficiaries to promote transparency and accountability.
Ambrose-Medebem said the initiative was designed to address one of the persistent challenges confronting small businesses: access to affordable capital.
She added that the National Council on Industry, Trade and Investment had adopted the financing framework as a model for MSME support across Nigeria.
According to her, the state is also leveraging more than 16,000 registered cooperative societies operating through 24 Area Cooperative Offices to extend financial services to entrepreneurs who might otherwise struggle to meet conventional banks’ lending requirements.
She described cooperatives as an important channel for delivering capital, training and market access, noting that their community-based structures could improve accountability and help businesses build the capacity needed to attract further investment.
Beyond financing, the commissioner highlighted the Lagos State Industrial Policy 2025–2030, which identifies six priority sectors for investment and enterprise development: agro-processing, light manufacturing, healthcare, the creative economy, digital trade and the blue economy.
She said the policy was intended to support industrial growth and create opportunities for MSMEs to participate in sectors with significant potential for production, innovation and employment.
As part of the state’s industrial development strategy, Ambrose-Medebem disclosed that the 44-unit Imota Light Industrial Park was nearing completion, saying that the facility is expected to provide production space for businesses and support the expansion of manufacturing activities.
The commissioner also urged businesses to look beyond the domestic market and take advantage of opportunities under the African Continental Free Trade Area (AfCFTA), which she described as a market worth approximately $3.4 trillion.
On export development, she said the Lagos State Export Readiness Programme had trained 253 businesses to improve their preparedness for international trade. Twenty top-performing enterprises were sponsored to attend the Intra-African Trade Fair in Algiers, where they secured export relationships.
She, however, acknowledged that inadequate business documentation, weak governance structures, inflation and high energy costs continued to constrain MSME growth and access to commercial financing.
Ambrose-Medebem urged entrepreneurs to formalise their businesses, invest in equipment and technology, meet relevant certification requirements and improve their financial records to strengthen their prospects of accessing finance and competing in export markets.
Also speaking at the event, the Senior Special Assistant to Governor Babajide Sanwo-Olu on Commerce, Cooperatives, Trade and Investment, Nana-Hauwa Adeeyo, announced grants of up to N1 million each for five outstanding enterprises participating in the Fashion, Leather and Creative Enterprise Spotlight.
Adeeyo said the grants formed part of the government’s efforts to turn business potential into measurable economic impact by supporting innovation, enterprise expansion and employment generation.
She also highlighted Lagos’ emergence as the top-performing state in the 2026 Presidential Enabling Business Environment Council’s ease-of-doing-business rankings, attributing the achievement to reforms in infrastructure, digital service delivery, land administration and regulatory efficiency.
Adeeyo said government policies should be measured by their ability to remove barriers, reduce costs and expand opportunities for business owners.
She encouraged MSMEs to join cooperatives, access available financing and training programmes, and provide feedback to the ministry on challenges affecting their operations.
The Permanent Secretary of the ministry, Babatunde Onigbanjo, said the grants and awards presented to outstanding MSME operators were intended to recognise entrepreneurial achievement and provide seed capital for business development.
Speaking on the theme, “Empowering MSMEs through Innovation and Sustainable Investment Development,” Onigbanjo described small businesses as critical contributors to economic growth, employment and grassroots innovation.
He urged grant beneficiaries to deploy the support responsibly by expanding their operations, adopting innovative practices, creating jobs and incorporating sustainable methods into their businesses.
He also encouraged them to regard the grants as a starting point for further growth rather than an end in themselves.
Onigbanjo stressed that government’s support must be matched by responsible business management, innovation and a willingness among entrepreneurs to take advantage of available opportunities.
The event featured the presentation of grants and awards to outstanding enterprises, reaffirming the state government’s commitment to promoting innovation, expanding access to finance and strengthening small businesses for sustainable economic growth.
Some MSME operators got grants ranging from N100,000 to N250,000 to support their businesses. Some others got deep freezer, grinding machine and others to boost their small businesses.
English (US) ·