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, aimed at expanding 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, described the training as a crucial step in translating policy into practical action that will benefit thousands of small businesses across the state.
Represented by the Director of Cooperative Services, Dr. Adeyinka Adeyemi, the Commissioner said representatives of the 17 accredited Accelerator Organisations, alongside officials of the Ministry, the Bank of Industry, Sterling Bank and cooperative stakeholders, form the implementation network that will facilitate access to single-digit financing for MSMEs.
She noted that although MSMEs remain the backbone of the Lagos economy, many business owners continue to struggle with access to affordable credit due to high lending rates, strict collateral requirements and limited access to formal financial institutions.
According to her, LASMECO was designed to bridge this financing gap by leveraging registered cooperative societies as financial intermediaries. Through the programme, eligible businesses can access loans of up to ₦10 million at a fixed interest rate of nine per cent per annum without the conventional collateral requirements that often exclude small business owners.
Mrs. Bada Ambrose-Medebem explained that the financing structure includes a 10 per cent cash contribution from borrowers, a 25 per cent guarantee from cooperative societies and a 50 per cent guarantee from Sterling Bank, while the Lagos State Government and the Bank of Industry jointly provide the loan funding.
She added that beyond providing finance, the initiative is expected to formalise informal businesses by encouraging their membership in registered cooperative societies, thereby integrating them into structured governance systems and creating broader growth opportunities.
The Commissioner also disclosed that the Ministry is digitising the cooperative ecosystem through a comprehensive digital registry to improve transparency, accountability, monitoring and programme implementation.
She urged the Accelerator Organisations to maintain high standards of professionalism in recruiting, mentoring and preparing MSMEs for financing, stressing that their performance would be assessed based on loan recovery, business growth, job creation and compliance with programme guidelines.
In his remarks, the Permanent Secretary, Ministry of Commerce, Cooperatives, Trade and Investment, Mr. Babatunde Onigbanjo, described the workshop as the point at which policy development transitions into practical execution.
Represented by the Director of Administration and Human Resources, Mr. Adeniyi Oladipupo, he said the training was designed to equip participants with the knowledge required to recruit, screen, mentor and submit qualified enterprises for funding.
He explained that the programme covers institutional arrangements, cooperative operations, beneficiary recruitment, loan processing, credit readiness, monitoring mechanisms and reporting procedures.
Mr. Onigbanjo noted that Accelerator Organisations are frontline implementation partners responsible for identifying qualified MSMEs, strengthening their business capacity, ensuring proper documentation and providing post-disbursement support to improve business sustainability and loan repayment.
He reiterated that every beneficiary must belong to a registered cooperative society, describing cooperatives as a gateway for informal businesses to enter the formal economy and access affordable finance, governance structures and business development support.
The Permanent Secretary also cautioned participants against collecting unauthorised fees from applicants, noting that programme charges are only deductible upon successful loan disbursement in line with approved guidelines.
He encouraged participants to actively engage in the technical sessions facilitated by experts from the Bank of Industry, Sterling Bank and the Ministry, while contributing to the development of practical procedures that will guide programme implementation across Lagos State.
According to him, LASMECO is a strategic intervention designed to strengthen the MSME sector, promote enterprise formalisation, deepen financial inclusion and drive inclusive economic growth in line with the development agenda of the Babajide Sanwo-Olu administration.