Lagos to partner BoI to improve SMEs access to finance

The Lagos State ministry of commerce, cooperatives, trade and investment is set to sign a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) and Sterling Bank Plc to improve financial access for Small and Medium Enterprises (SMEs). The commissioner for commerce, cooperatives, trade and investment, Folashade Ambrose-Medebem, said this in a statement on Monday in Lagos. According to the commissioner, the development is part of the state government’s efforts to boost access to finance for entrepreneurs across the state. She said the signing ceremony was part of activities for the launch of a new initiative tagged: “Lagos State Access to Finance for SMEs through Co-operatives (LASMECO).”
Mrs Ambrose-Medebem noted that the programme was billed to hold on May 7, at Adeyemi Bero Hall, The Secretariat, Alausa, Ikeja. “LASMECO is a first-of-its-kind public-private financing platform that aims to deliver low-interest, risk-mitigated loans to SMEs across strategic sectors, including healthcare, agriculture, creative industries, manufacturing, and circular economy clusters. The initiative is a game changer that will accelerate access to finance for SME business owners in the state by providing a loan of up to N10 million at  nine per cent interest rate for two to three years,” she said.
Mrs Ambrose-Medebem added that the loans were not collateralised and will be 50 per cent guaranteed by Sterling Bank Plc. She said that the access to finance for SMEs initiative, which would be launched by Governor Babajide Sanwo-Olu, would be witnessed by key stakeholders in both public and private sectors. The commissioner said dignitaries expected at the event include the managing director of BoI, Olasupo Olusi and managing director, Sterling Bank Plc, Abubakar Suleiman. Others, she said were the president, Manufacturers Association of Nigeria, Francis Meshioye and the president, Lagos Chambers of Commerce and Industry,  Gabriel Idahosa.