Running a small business in Nigeria can be challenging, especially when access to affordable funding is limited. But if you’re a business owner in Lagos, there’s good news for you! The Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) is a brand-new initiative designed to make it easier for micro, small, and medium enterprises (MSMEs) to access the financial support they need to grow and thrive.
In this blog post, we’ll break down everything you need to know about LASMECO: what it is, how it works, who can apply, how to register, and why this scheme is such a game-changer for business owners in Lagos.
What is LASMECO?
LASMECO stands for Lagos State Micro, Small, and Medium Enterprise Cooperative Initiative. It was officially launched on May 7, 2025, by Governor Babajide Sanwo-Olu in partnership with the Bank of Industry (BOI) and Sterling Bank.
The goal of LASMECO is simple: to help small businesses in Lagos State access low-interest loans without collateral — something many entrepreneurs have struggled with in the past.
Key Features of the LASMECO Loan
- Loan Amount: Up to ₦10 million available to eligible MSMEs.
- Interest Rate: A flat 9% per annum, much lower than commercial bank rates.
- No Collateral: You don’t need to put up property or assets to qualify.
- Flexible Access: Loans are accessed through registered cooperative societies, making it easier for small and informal businesses to benefit.
- Job Creation: The scheme is expected to generate over 10,000 jobs across Lagos.
Who is Eligible for the LASMECO Loan?
You’re eligible if:
- You operate a micro, small, or medium enterprise within Lagos State.
- Your business is registered or affiliated with a cooperative society recognized in Lagos.
- Your business activity contributes to the local economy — such as fashion, agriculture, tech, manufacturing, trading, etc.
Whether you’re a tailor in Ikeja, a farmer in Epe, or a tech startup in Yaba — as long as you belong to a cooperative and operate in Lagos, this scheme is for you.
How to Register for LASMECO and Access the Loan
To benefit from LASMECO, follow these simple steps:
1. Join or Form a Cooperative Society
The LASMECO loan is accessible only through registered cooperative societies in Lagos. If you’re not a member of one, you’ll need to:
- Join an existing cooperative in your business sector, or
- Form a new one with fellow entrepreneurs and register it with the Lagos State Ministry of Commerce, Industry, and Cooperatives.
2. Get Your Documentation Ready
Make sure your cooperative has:
- A registered certificate
- A cooperative bank account
- Verified members with traceable businesses
- A loan repayment strategy
3. Apply through the LASMECO Portal or Your Cooperative
Once you’re part of a registered cooperative:
- Your cooperative can apply for the loan directly through the LASMECO application process, in partnership with the Bank of Industry (BOI) and Sterling Bank.
- BOI will vet the application, and if successful, funds will be disbursed to your cooperative and then passed down to individual members.
Note: As of May 2025, official LASMECO registration portals are managed in collaboration with BOI and Sterling Bank. Keep an eye on BOI’s website and Lagos State Government updates for announcements.
Why LASMECO is a Game Changer for Lagos Entrepreneurs
- Financial Inclusion: Many small businesses in Nigeria don’t qualify for traditional bank loans. LASMECO breaks down that barrier.
- Community Empowerment: By going through cooperatives, the loan process becomes more accessible and transparent.
- Government-Backed: This isn’t just another promise — LASMECO is backed by the Lagos State Government with real partnerships and funding.
- Encourages Business Formalization: Entrepreneurs are now motivated to register their businesses and cooperatives, bringing more structure to the local economy.
Final Thoughts: Should You Apply for LASMECO?
Absolutely! If you run a business in Lagos, this is your chance to scale up, buy new equipment, hire more staff, or simply expand your reach — all without the stress of high-interest loans or collateral demands.
Whether you’re in tech, agriculture, fashion, retail, or production, LASMECO gives you the financial push you’ve been waiting for.
Need Help Getting Started?
If you’re unsure how to join a cooperative, or you want step-by-step help registering one, drop your questions in the comments! We’ll be sharing more updates on how to apply, required documents, and success stories from entrepreneurs already benefiting from LASMECO.