The Bank of Industry (BoI), in partnership with the Lagos State Government and Sterling Bank Plc, has launched a new initiative aimed at providing micro, small, and medium enterprises (MSMEs) with unprecedented access to financial support.
This tripartite agreement is expected to propel business growth across key sectors, driving innovation and economic development throughout the state.
At the signing of the Memorandum of Understanding (MOU) for the Lagos State Access to Finance for SMEs through Cooperatives, the Managing Director of BoI, Dr. Olasupo Olusi, described the partnership as a “new chapter” for entrepreneurs in Lagos, a city long known as Nigeria’s economic heartbeat.
“MSMEs are the engine of economic growth,” Olusi said, emphasizing that the initiative would break down long-standing barriers to finance that have hindered many small businesses from reaching their full potential.
“This partnership aims to dismantle these barriers and create an inclusive, thriving environment where entrepreneurs can truly flourish.”
Lagos, being the commercial hub of Nigeria, houses thousands of MSMEs contributing significantly to its economy.
However, access to finance has always been a challenge for many small businesses, which often struggle to secure the funding necessary for expansion and innovation.
The new initiative addresses this issue head-on by offering financial solutions tailored to the unique needs of Lagos entrepreneurs.
Key Features of the MSME Initiative
- Access to Funding: Through this program, MSMEs in Lagos can access up to ₦10 million with a single-digit interest rate of 9% per annum, without the need for collateral. This removes one of the biggest barriers to growth for small businesses in the city.
- Technology-Driven Process: From application to disbursement, the entire funding process will be digital, ensuring speed, transparency, and real-time tracking of funds. The initiative is designed to facilitate quick access to capital and reduce bureaucratic delays.
- Bank Guarantees & De-risking: Up to 50% of the funding will be backed by a bank guarantee, minimizing risk for lenders and boosting confidence in the program.
- Cooperative Framework: Funds will be channeled through certified cooperatives, ensuring that businesses have the support they need to succeed and providing a framework of trust and accountability.
- Accelerator Program: Beyond just funding, the initiative also includes a business accelerator program that offers mentorship, training, and digital tools to help MSMEs grow, scale, and compete effectively in the local and international markets.
Sector Focus and Long-term Impact
The scheme will focus on key sectors critical to Lagos’ development, including manufacturing, agriculture, healthcare, creative industries, and the digital economy. These industries are integral to Lagos’ status as an innovation hub, and the new financial support structure will provide the necessary capital to fuel further growth and job creation.
Governor Babajide Sanwo-Olu of Lagos State also expressed his excitement about the initiative. “This partnership represents a giant leap forward in our commitment to creating an enabling environment for MSMEs in Lagos,” he said.
“We encourage all beneficiaries to use these funds wisely, repay on schedule, and unlock more opportunities for future growth.”
The collaboration between the Lagos State Government, BoI, and Sterling Bank is not just about financing; it is about fostering a holistic ecosystem where MSMEs have access to the tools, mentorship, and networks they need to succeed.
With ₦10 billion earmarked as the initial fund, this program has the potential to scale, empowering a new generation of entrepreneurs in Lagos.
Looking Ahead
As Lagos continues to solidify its position as Africa’s leading business hub, initiatives like this are crucial in ensuring that its entrepreneurs remain competitive and resilient.
The Lagos MSME tripartite agreement is a bold step toward ensuring that small businesses in the state have the resources and support they need to thrive in an increasingly digital and competitive world.
