Thousands of small businesses across Lagos are set to gain access to affordable financing, as Sterling Bank throws its weight behind a new credit scheme that removes the usual roadblocks to growth. In partnership with the Lagos State Government and the Bank of Industry (BOI), Sterling Bank is guaranteeing 50 per cent of all loans disbursed under the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO).
The initiative targets one of the most persistent challenges for entrepreneurs: access to capital without the burden of collateral and unsustainable interest rates. With over three million MSMEs operating in Lagos, their contributions to employment and GDP are undeniable, yet most remain locked out of credit due to rigid financial requirements.
The LASMECO scheme was formally unveiled at a Memorandum of Understanding (MoU) signing between Sterling Bank, BOI, and the Lagos State Government. Under the agreement, SMEs can access loans of up to ₦10 million at a competitive interest rate of 9%, with repayment periods of two to three years. Rather than pledging physical collateral, business owners will borrow through registered cooperatives, which provide collective guarantees.
Sterling is providing a guarantee of 50% for the entire loan to be granted to all the MSMEs under the scheme. This guarantee removes the burden of collateral provisions and ensures ease of access to the fund by all qualified MSMEs.
Speaking at the launch of the LASG–BOI–Sterling Bank MSME Fund, Governor Babajide Sanwo-Olu praised the partnership: “This kind of corporate commitment to social impact, while still achieving busines goals, sets an example for other financial institutions,” he said, commending Sterling Bank’s “tremendous vision and confidence” in supporting the state’s entrepreneurial engine.
He continued, “That means millions of our citizens wake up every day as owners of small shops and stalls, founders of startups, operators of restaurants and factories, providers of services and artisans of trade. Together, these hard-working men and women employ most of our workforce and provide livelihoods for countless families. They turn the cogs of commerce in every neighborhood, from Epe to Eko, Badagry to Ikeja.”