LAGOS DISBURSES ₦5 BILLION TO COOPERATIVE-BASED SMALL BUSINESSES UNDER LASMECO SCHEME

State-BOI facility targets SMEs facing commercial credit squeeze; programme adopted as national MSME financing model

The Lagos State Government has disbursed ₦5 billion in counterpart funding to cooperative-based micro, small and medium enterprises across the state, as the government moves to shield its vital small-business sector from a severe credit squeeze caused by persistently high commercial interest rates.

The disbursement was confirmed by Folashade Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade, and Investment, who said the capital injection is being distributed under the Lagos State Government–Bank of Industry Access to Finance scheme domestically branded as LASMECO.

The programme was launched in May 2025 and is being implemented through an integrated cooperative digitalisation Special Purpose Vehicle involving the Ministry of Commerce, Cooperatives, Trade and Investment, Asset Matrix Microfinance Bank, SEKAT, QooP, and Imade Forte.

Dr Muda Yusuf of the Centre for the Promotion of Private Enterprise said the initiative would stimulate economic growth and promote enterprise development. "Disbursing the money is commendable and it is better than doing nothing. The fact that the government is releasing this value of credit to entrepreneurs will lead to their expansion," he said, noting that some states have failed to introduce similar measures to assist businesses during challenging economic periods.

The LASMECO model has gained national recognition after being unanimously adopted at the 16th National Council on Industry, Trade and Investment as a framework for MSME financing reforms across Nigeria, signalling that other states may adopt similar cooperative-based credit structures.

Lagos-based SMEs organised into cooperatives should contact their trade associations, cooperative unions, or the Ministry of Commerce directly to confirm eligibility and disbursement schedules under the current tranche.