Lagos Launches Accelerator Program to Help SMEs Access Single-Digit Loans.

The Lagos State Government has launched a three-day accelerator training programme aimed at strengthening support for small and medium-sized enterprises (SMEs) seeking affordable financing through the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) initiative.

The program, organised by the Ministry of Commerce, Cooperatives, Trade and Investment in partnership with the Bank of Industry (BoI) and Sterling Bank Plc, is designed to equip selected accelerator organisations with the expertise needed to recruit, assess and support SMEs throughout the loan application process.

Speaking at the opening of the workshop, the ministry’s Permanent Secretary, Babatunde Onigbanjo, said the initiative has now entered the implementation stage following the release of the Lagos State Government’s counterpart funding.

Represented by the Director of Administration and Human Resources, Adeniyi Oladipupo, Onigbanjo explained that participants would receive training on the objectives of the programme, beneficiary recruitment, loan application procedures, monitoring and reporting systems, as well as the cooperative framework that forms the foundation of LASMECO.

He described the workshop as a practical capacity-building exercise intended to ensure that participating organisations are fully prepared to identify, screen and submit qualified SMEs for financing.

According to Onigbanjo, membership in a registered cooperative society is a mandatory requirement for businesses wishing to benefit from the programme, as the cooperative model remains central to LASMECO’s implementation strategy.

He revealed that Lagos State currently has more than 13,000 registered cooperative societies, although only between 1,900 and 2,200 are actively operating. Revitalising inactive cooperatives, he said, would significantly increase access to financing for small businesses across the state.

Onigbanjo also warned participating accelerator organisations against imposing unauthorised fees on applicants, emphasising that the programme does not require payments for applications, training or evaluation.

Delivering remarks on behalf of the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, Dr. Adeyinka Adeyemi said LASMECO was created to address the persistent financing challenges faced by SMEs in Lagos.

He noted that small and medium-sized enterprises account for approximately 80 per cent of employment and contribute nearly 75 per cent of Lagos State’s Gross Domestic Product (GDP). Despite their significant role in the economy, many SMEs continue to struggle with accessing formal credit due to high interest rates and strict collateral requirements.

Adeyemi explained that the program offers eligible businesses loans of up to ₦10 million at a fixed annual interest rate of nine per cent through registered cooperative societies. Rather than relying on conventional collateral, the scheme uses a cooperative-backed guarantee system to make financing more accessible.

He added that the ministry is currently digitising Lagos State’s cooperative registry to enhance transparency, improve beneficiary verification and strengthen programme monitoring. According to him, the long-term success of participating businesses will be assessed based on loan repayment performance, business growth, job creation and compliance with reporting obligations.