Lagos Releases $3M to Fund 500+ Small Businesses

Small business owners across Lagos, Nigeria are getting a financial lifeline that doesn't require putting up property or assets as security.

The Lagos State Government released ₦5 billion as the first half of its groundbreaking LASMECO program, designed specifically to help cooperative-based small and medium enterprises access affordable funding. Commissioner for Commerce Folashade Ambrose-Medebem announced the release at a press briefing celebrating Governor Babajide Sanwo-Olu's seventh year in office.

The program launched in May 2025 with ₦10 billion in total funding. Qualifying businesses can now access loans up to ₦10 million without collateral, paying just 9% annual interest.

Even better, borrowers get six months before their first payment is due. They then have three full years to repay, taking pressure off entrepreneurs who need time to grow before generating consistent revenue.

LASMECO works through registered cooperatives rather than individual applications. The state partnered with Asset Matrix Microfinance Bank and several digital platforms including SEKAT, QooP, and Imade Forte to process and manage the loans efficiently.

The Ripple Effect

This isn't just about money changing hands. The program has already caught attention at the national level as a replicable model for the entire country.

At the 16th National Council on Industry, Trade and Investment, officials from across Nigeria unanimously adopted LASMECO as a framework for MSME financing reforms nationwide. That means thousands more small businesses beyond Lagos could soon benefit from similar programs in their own states.

Cooperatives provide built-in accountability and peer support that traditional lending often lacks. Members encourage each other, share business knowledge, and help ensure loans get repaid so the fund can continue supporting more entrepreneurs.

The Lagos government plans to gradually expand LASMECO access to more eligible cooperatives as the program matures. Officials say this approach builds financial inclusion from the grassroots up, creating jobs and strengthening local economies one cooperative at a time.

Nigeria's small businesses are getting the support they need to thrive, and the model is spreading.