The Lagos State Government is stepping up support for micro, small and medium enterprises (MSMEs) as part of efforts to create jobs, improve access to finance and strengthen entrepreneurial skills across the state.

The strategy places MSMEs at the heart of Lagos’ economic development agenda, combining funding opportunities with training and enterprise development initiatives designed to help businesses expand, generate employment and contribute more significantly to the state’s economy.

A major part of the intervention is being implemented through the Lagos State Employment Trust Fund (LSETF), which disbursed about N1.933 billion in loans and grants during 2025.

Of the total amount, approximately N1.91 billion was provided as affordable loans to 4,036 businesses, while N23.6 million was distributed to enterprises through grants.

Beyond the LSETF intervention, the state has introduced the N10 billion Lagos State Micro Enterprise Support Initiative (LASMECO) to further expand financing opportunities for small businesses.

LASMECO has engaged 19 business accelerators to support the implementation of the programme and provide eligible cooperative-based MSMEs with affordable funding that does not require collateral.

The state’s MSME financing strategy also includes the N5 billion Lagos State Government–Bank of Industry financing scheme, which is targeted at eligible businesses seeking additional capital.

Under the scheme, qualifying businesses can obtain loans of up to N10 million without collateral, with the funds offered at a single-digit annual interest rate of 9 per cent.

Lagos’ approach, however, extends beyond access to capital, with skills development forming another important component of its support for entrepreneurs and job seekers.

In partnership with the United Nations Development Programme (UNDP), the state has launched the third phase of its Employability Support Project. The latest phase builds on earlier programmes that provided more than 8,000 young people with training in vocational skills, entrepreneurship and workplace competencies.

By bringing together financing, skills acquisition and enterprise development, the government’s interventions are intended to address some of the barriers that limit MSME growth while creating additional opportunities for employment and entrepreneurship across Lagos.

Source: msmeafrica