Lagos, BoI, Sterling Provide MSMEs N10m Friendly Loans

Micro, Small and Medium Enterprises (MSMEs) in Lagos would have the opportunity of accessing N10million friendly loans, courtesy of a collaboration of the state government, and two banks.

The two banks are Bank of Industry and Sterling, and they would be partnering in the new Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme.

The scheme aims to make available to the MSMEs single digit interest loans to support their business, the agencies said in a statement.

Under this scheme, MSMEs in Lagos will be able to access loans of up to N10m with no collateral required, at the competitive nine per cent interest rate. The programme’s aim is to provide comprehensive support to entrepreneurs, giving them the resources, training, and guidance needed to succeed and thrive.

Speaking at a launch ceremony coordinated by the Lagos State Ministry of Commerce, Industry, and Investment, the Lagos State Governor, Babajide Sanwo-Olu, emphasised the importance of public-private partnerships in driving economic growth and supporting local businesses.

“This programme is the first of its kind in our state, and it is designed to address the challenges faced by MSMES.

“For the first time, thousands of entrepreneurs in Lagos will have access to loans of up to N10m at an interest rate of just nine per cent per annum,” Sanwo-Olu said.

He stressed that the initiative would significantly reduce the financial burdens currently faced by small business owners who often grapple with high lending rates.

The Managing Director and CEO of the Bank of Industry, Dr Olasupo Olusi, said the MoU signing marks the beginning of a transformative chapter for MSMEs in Lagos.

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He said the partnership would unlock the creativity, resilience, and potential of small businesses by providing access to financial resources and eliminating structural barriers.

“In a country like ours, where MSMEs are the backbone of the economy, access to finance is crucial.

“This initiative is designed to provide that access, particularly for MSMEs in sectors vital to Lagos State’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” Olusi said.

The statement described the administration of the friendly loans to be fully technology-driven, ensuring speed, transparency, and real-time impact tracking.

It added that up to 50 per cent of the fund is backed by a bank guarantee, which would reduce the risks associated with lending and increase confidence among stakeholders.

It added that access to the funds will be facilitated through certified cooperatives, ensuring structure and accountability.

Additionally, the scheme will include an accelerator programme offering mentorship, training, and digital tools to help MSMES grow and compete in the market.

Nigerian enterprises, especially those in the micro, small and medium sector have always desired friendly loans as against the high digit ones which tend to stifle their operations.

However, whether this one would not go the way of others before, is left for time to answer.