LAGOS GOVT TRAINS ACCELERATOR ORGANISATIONS TO DRIVE SINGLE-DIGIT LOANS FOR MSMEs (PHOTOS)
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Agency report
The Lagos State Government, through the Ministry of Commerce, Cooperatives, Trade, and Investment, has commenced a three-day training workshop for accelerator organisations under the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) Programme to improve access to single-digit financing for Micro, Small, and Medium Enterprises (MSMEs) across the state.
The training, which began on Monday at the Bank of Industry (BOI) office in Lagos, is aimed at equipping accredited accelerator organisations with the knowledge required to facilitate access to affordable loans for small businesses through registered cooperative societies.
Speaking at the opening ceremony, the Commissioner for Commerce, Cooperatives, Trade, and Investment, Mrs. Folashade Bada Ambrose-Medebem, described the workshop as a key step towards implementing the LASMECO initiative.
Represented by the Director of Cooperative Services, Dr. Adeyinka Adeyemi, the commissioner said the programme was designed to move beyond policy formulation to practical implementation that would positively impact thousands of MSMEs across Lagos State.
She said representatives of the 17 accredited accelerator organisations, officials of the ministry, the Bank of Industry, Sterling Bank Plc., and cooperative stakeholders formed the implementation ecosystem that would facilitate access to single-digit financing for MSMEs.
According to her, many small businesses continue to struggle with accessing affordable credit due to high commercial lending rates, stringent collateral requirements, and limited access to formal financial institutions.
Mrs. Bada Ambrose-Medebem explained that LASMECO was introduced to bridge the financing gap by leveraging registered cooperative societies as financial intermediaries, enabling eligible businesses to obtain loans at a fixed interest rate of nine per cent per annum without conventional collateral barriers.
She disclosed that beneficiaries could access loans of up to ₦10 million, supported by a funding structure comprising a 10 percent cash contribution from borrowers, a 25 percent guarantee from cooperative societies, a 50 per cent guarantee from Sterling Bank, while the Lagos State Government and the Bank of Industry jointly provide the loan funding.
The commissioner added that the initiative would also encourage informal businesses to join registered cooperative societies, thereby promoting enterprise formalisation and expanding opportunities for business growth.
She further revealed that the ministry was digitising the cooperative ecosystem through a comprehensive digital registry to improve transparency, accountability, monitoring and programme implementation.
Mrs. Bada Ambrose-Medebem urged accelerator organisations to maintain high standards of professionalism in recruiting, mentoring, and preparing MSMEs for financing, noting that their continued participation in the programme would depend on measurable performance indicators, including loan recovery, business growth, job creation, and compliance with programme guidelines.
Earlier, the Permanent Secretary, Ministry of Commerce, Cooperatives, Trade, and Investment, Mr. Babatunde Onigbanjo, described the workshop as the transition from policy development to implementation.
Represented by the Director of Administration and Human Resources, Mr. Adeniyi Oladipupo, Onigbanjo said participants would receive training on institutional arrangements, cooperative operations, beneficiary recruitment, loan processing, credit readiness, monitoring mechanisms and reporting procedures.
He said accelerator organisations would serve as frontline implementation partners responsible for identifying qualified MSMEs, strengthening their business capacity, ensuring complete documentation, and providing post-disbursement support to improve business sustainability and loan repayment.
The permanent secretary reiterated that all beneficiaries must belong to registered cooperative societies, describing cooperatives as the gateway through which informal businesses could transition into the formal economy and gain access to affordable finance and business development opportunities.
He also warned participants against collecting unauthorised fees from applicants, stressing that programme fees are only deductible after successful loan disbursement in line with established guidelines.
Onigbanjo encouraged participants to maximise the technical sessions facilitated by experts from the Bank of Industry, Sterling Bank, and the ministry, adding that the initiative aligns with Governor Babajide Sanwo-Olu’s agenda of strengthening the MSME sector, promoting financial inclusion, and accelerating inclusive economic development in Lagos State.
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