Lagos State Governor Babajide Sanwo-Olu has declared that the state government’s N10 billion cooperative financing initiative is already delivering tangible results by strengthening the growth of micro, small and medium enterprises (MSMEs), widening access to affordable finance and accelerating grassroots economic development across Lagos. The governor said the initiative has become a major pillar of his administration’s strategy to empower entrepreneurs, reduce poverty and stimulate sustainable economic growth through the cooperative movement. DDM News gathered that the programme is already being recognised beyond Lagos as a model capable of reshaping MSME financing across Nigeria.
Sanwo-Olu made the disclosure on Saturday during the 2026 International Day of Cooperatives celebration held at the LASCOFED Multipurpose Hall in Ogba, Ikeja. The event, which attracted cooperative leaders, government officials, entrepreneurs and development stakeholders, provided an opportunity for the state government to reaffirm its commitment to strengthening cooperative societies as vital drivers of inclusive economic development, job creation and social stability.
Represented by the Permanent Secretary in the Ministry of Commerce, Cooperatives, Trade and Investment, Babatunde Onigbanjo, the governor explained that the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO) scheme has emerged as one of the most impactful initiatives introduced by his administration. According to him, the programme has fundamentally changed how cooperative-based businesses obtain financing by removing many of the traditional obstacles that have prevented small businesses from accessing credit.
He explained that unlike conventional commercial lending, which often requires expensive collateral and complicated documentation, LASMECO provides affordable financing through registered cooperative societies, making it easier for entrepreneurs to secure the capital needed to expand their businesses.
Sanwo-Olu disclosed that the state government has already released the first N5 billion tranche of the overall N10 billion financing package, describing the initiative as the largest cooperative-led MSME financing programme ever implemented by the Ministry of Commerce, Cooperatives, Trade and Investment.
According to the governor, eligible cooperative-based MSMEs can obtain loans of up to N10 million at a single-digit interest rate of nine percent, making the facility significantly more affordable than many commercial lending options currently available. Beneficiaries are also entitled to a six-month moratorium before repayment begins, while the repayment period extends for as long as 36 months, providing businesses with sufficient time to stabilise operations before servicing their loans.
He further explained that the entire application and approval process has been digitised through a transparent online platform, ensuring greater efficiency, accountability and equal access for qualified applicants while reducing unnecessary bureaucratic delays.
Sanwo-Olu revealed that the success of the LASMECO initiative has attracted national attention. According to him, the National Council on Industry, Trade and Investment has officially adopted the programme as a model framework for MSME financing reforms across Nigeria, an endorsement that underscores Lagos State’s leadership role in developing innovative solutions to improve access to finance for small businesses.
The governor emphasised that cooperative societies remain indispensable partners in the state’s economic development agenda because of their unique ability to mobilise savings, provide affordable credit, encourage entrepreneurship and strengthen community-based economic activities.
He noted that Lagos currently has more than 16,000 registered cooperative societies operating through 24 area offices, making the cooperative movement one of the largest organised economic networks within the state.
According to Sanwo-Olu, these societies continue to contribute significantly to poverty reduction, employment creation and financial inclusion by providing millions of residents with access to financial services that may otherwise remain beyond their reach.
Speaking on this year’s theme, “Cooperatives for a Peaceful World,” the governor stressed that lasting peace cannot be achieved solely through security measures but must also be built on economic opportunities and shared prosperity.
He argued that peace is sustained when citizens have access to employment, business opportunities, social justice and financial security. Cooperatives, he said, have consistently demonstrated their ability to unite people from different ethnic, religious, social and economic backgrounds around common developmental goals while promoting trust, collaboration and collective prosperity.
According to the governor, cooperative societies continue to serve as important platforms where individuals pool resources, support one another financially and collectively improve their economic wellbeing, thereby reducing social tensions often associated with unemployment and poverty.
Beyond the financing initiative, Sanwo-Olu highlighted several other programmes introduced by his administration to strengthen the cooperative ecosystem across Lagos State. These include the implementation of the Lagos State Industrial Policy (2025–2030), which seeks to promote industrial growth and enterprise development, as well as the expansion of the Lagos State Cooperative College (LASCOCO) to improve training and capacity building for cooperative leaders and members.
He also disclosed that the state government has strengthened regulatory oversight of cooperative societies through enhanced collaboration with the Police Special Fraud Unit, a move designed to safeguard members’ investments, improve governance standards and reduce fraudulent practices within the sector.
The governor urged cooperative executives and administrators to embrace transparency, accountability and innovation in managing their organisations. According to him, the continued success and long-term sustainability of the cooperative movement depend largely on responsible leadership capable of earning and maintaining the confidence of members.
In her welcome address, the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folashade Bada Ambrose-Medebem, described cooperative societies as powerful instruments for achieving inclusive economic growth, reducing poverty and strengthening community development across Lagos State.
Represented by the Director of Cooperatives, Dr. Adeyinka Adeyemi, the commissioner stated that cooperative organisations continue to play a vital role in entrepreneurship development by providing financial support, encouraging business expansion and creating employment opportunities for thousands of residents.
She noted that the state’s cooperative movement has consistently contributed to financial inclusion by offering affordable credit facilities, promoting savings culture and empowering individuals who might otherwise struggle to obtain financing from conventional financial institutions.
Also addressing participants at the celebration, President of the Lagos State Cooperative Federation (LASCOFED), Oladipo Shobule, described cooperative societies as critical socio-economic stabilisers that promote economic justice, shared prosperity and sustainable development within communities.
Shobule announced the official commissioning of LASCOFED’s Online CoopRadio platform, an innovative digital initiative designed to improve cooperative education, strengthen communication among members and increase public awareness about the benefits of cooperative societies.
He encouraged cooperative organisations across Lagos to actively support the federation’s long-term development projects, particularly the proposed LASCOFED Cooperative Centre in Mojoda, Epe, which is expected to serve as a major hub for training, research, meetings and cooperative development activities.
Stakeholders at the event observed that as economic pressures continue to challenge many small businesses across Nigeria, cooperative societies are becoming increasingly important in bridging financing gaps, supporting entrepreneurship and expanding economic opportunities at the grassroots level.
With thousands of registered cooperative societies already operating across Lagos and billions of naira being channelled into affordable financing, the state’s cooperative development strategy is positioning itself as a practical model for inclusive economic growth. Beyond providing access to loans, the initiative is fostering entrepreneurship, strengthening local businesses, encouraging financial discipline and promoting community-based wealth creation. DDM News understands that if successfully sustained and replicated nationwide, the Lagos cooperative financing model could significantly transform Nigeria’s MSME landscape while supporting broader national objectives of job creation, poverty reduction and sustainable economic development.
