By Imisioluwa Afunmiso
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 to improve access to affordable loans for Micro, Small and Medium Enterprises (MSMEs) across the state.
The workshop, held on Monday at the Bank of Industry (BOI) office in Lagos, brought together representatives of 17 accredited accelerator organisations, officials of the Ministry of Commerce, Cooperatives, Trade and Investment, the Bank of Industry, Sterling Bank Plc and cooperative stakeholders.
Speaking at the opening ceremony, the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Bada Ambrose-Medebem, said the training marks the transition of the LASMECO initiative from policy to implementation.
Represented by the Director of Cooperative Services, Dr Adeyinka Adeyemi, the commissioner said the programme is designed to expand access to single-digit financing for MSMEs through a cooperative-driven model.
She noted that many small businesses struggle to obtain affordable credit because of high lending rates, strict collateral requirements and limited access to formal financial institutions.
According to her, LASMECO will address these challenges by using registered cooperative societies as financial intermediaries, allowing qualified businesses to access loans at a fixed interest rate of nine per cent per annum without the conventional collateral barriers.
She disclosed that eligible businesses can obtain loans of up to N10 million under the programme.
Bada Ambrose-Medebem explained that borrowers will provide a 10 per cent cash contribution, while cooperative societies will guarantee 25 per cent of the loan and Sterling Bank will provide a 50 per cent guarantee. The Lagos State Government and the Bank of Industry will jointly fund the loans.
She added that the initiative would also help formalise informal businesses by encouraging them to join registered cooperative societies, giving them access to structured governance, business support and financing opportunities.
The commissioner further revealed that the ministry is creating a digital registry for cooperative societies to improve transparency, accountability, monitoring and programme implementation.
She urged the accredited accelerator organisations to maintain 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 address, the Permanent Secretary, Ministry of Commerce, Cooperatives, Trade and Investment, Mr Babatunde Onigbanjo, described the workshop as a crucial stage in implementing the programme.
Represented by the Director of Administration and Human Resources, Mr Adeniyi Oladipupo, Onigbanjo said the training would equip participants with the knowledge required to recruit, screen, mentor and submit qualified MSMEs for funding.
He said the workshop covers institutional arrangements, cooperative operations, beneficiary recruitment, loan processing, credit readiness, monitoring and reporting procedures.
According to him, accelerator organisations will serve as frontline partners responsible for identifying eligible businesses, strengthening their capacity, ensuring proper documentation and providing post-disbursement support to improve sustainability and loan repayment.
He reiterated that every beneficiary must belong to a registered cooperative society, describing cooperatives as the gateway for integrating informal businesses into the formal economy.
The permanent secretary also warned participants against collecting unauthorised fees from applicants, stating that approved programme fees would only be deducted after successful loan disbursement.
He said the initiative aligns with the Babajide Sanwo-Olu administration’s efforts to strengthen the MSME sector, deepen financial inclusion and promote inclusive economic growth across Lagos State.