The Lagos State Government has taken a major step toward strengthening small businesses and cooperative societies with the signing of agreements with 19 accelerators for the implementation of the ₦10 billion Lagos State Micro Enterprise Support Initiative, popularly known as LASMECO. The initiative, designed to support cooperative-based Micro, Small and Medium Enterprises across the state, is expected to provide affordable financing opportunities for thousands of entrepreneurs struggling with limited access to capital and rising operating costs.
The signing ceremony, held at the Ministry of Commerce, Cooperatives, Trade and Investment in Alausa, Ikeja, officially marked the commencement of the application and processing phase for eligible cooperative societies seeking to benefit from the programme. Government officials, representatives of cooperative groups, financial experts, and stakeholders from the business community attended the event, which many described as a strategic intervention aimed at stimulating grassroots economic growth and empowering local enterprises.
Under the scheme, beneficiaries will gain access to non-collateral financing support at single-digit interest rates, a move expected to significantly reduce the financial burden on small business owners who often struggle to secure loans from conventional financial institutions. Speaking during the ceremony, the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose-Medebem, said the state government remained committed to creating a more supportive environment for entrepreneurs and cooperative societies.
According to her, the selection process for the 19 accelerators was rigorous, transparent, and strictly merit-based to ensure only competent and experienced organizations were chosen to drive the implementation process. She explained that the accelerators would play critical roles in identifying qualified beneficiaries, supporting business development processes, ensuring compliance with programme guidelines, and helping enterprises scale sustainably.
The commissioner emphasized that the initiative was not merely about disbursing loans, but about building resilient businesses capable of contributing meaningfully to Lagos State’s economy. “This initiative represents a strategic effort to empower cooperative-based MSMEs, deepen financial inclusion, and stimulate economic productivity across Lagos State,” she stated.
Folashade Ambrose-Medebem noted that small businesses remain the backbone of the state’s economy, contributing significantly to employment generation, wealth creation, and local commerce. She added that many entrepreneurs possess viable business ideas and strong market potential but are often constrained by lack of access to affordable funding and technical support. According to government officials, the LASMECO programme was carefully designed to address those challenges by combining financing support with institutional guidance and business acceleration services.
Stakeholders at the event described the initiative as timely, especially in the face of prevailing economic pressures affecting small and medium-scale enterprises across Nigeria. Many business owners have continued to grapple with inflation, high production costs, unstable energy supply, and restricted access to credit facilities, forcing several enterprises to either downsize or shut down operations. Economic analysts believe the Lagos initiative could provide a much-needed lifeline for cooperative societies and grassroots entrepreneurs who are typically excluded from traditional financing systems due to collateral requirements and high interest rates.
Observers also noted that the emphasis on cooperative-based businesses could encourage stronger financial discipline, shared accountability, and community-driven economic development. The 19 accelerators engaged by the government are expected to oversee various stages of implementation, including sensitization campaigns, application assessments, capacity-building programmes, monitoring, and post-funding support for beneficiaries.
Officials explained that the accelerators would work closely with cooperative societies across different sectors including agriculture, manufacturing, retail, fashion, transportation, food processing, technology, and creative enterprises.
Several representatives of cooperative associations present at the event applauded the Lagos State Government for what they described as a bold intervention capable of transforming thousands of small businesses. Some stakeholders said the programme could also help reduce unemployment by enabling entrepreneurs to expand operations and hire more workers. Industry experts believe the success of the initiative may serve as a model for other states seeking practical solutions to economic inclusion and MSME financing challenges.
For many participants at the ceremony, the launch of the application and processing phase signaled the beginning of renewed hope for small business operators eager to survive and grow in an increasingly competitive economic environment. As the implementation phase begins, attention is expected to focus on transparency, accessibility, and the effective distribution of funds to ensure the programme achieves its intended objectives.
The Lagos State Government maintains that the LASMECO initiative forms part of broader efforts to strengthen the state’s economic ecosystem, encourage entrepreneurship, and promote inclusive growth capable of reaching businesses at the grassroots level. With ₦10 billion now earmarked for the programme and 19 accelerators officially onboarded, many small business owners across Lagos are hopeful that the initiative could mark a turning point in their efforts to expand operations, improve productivity, and secure long-term sustainability.
