Economists have applauded the Lagos State Government’s N5 billion disbursement to small businesses, describing the scheme as a vital catalyst for economic growth and enterprise development.
In separate interviews on Sunday, experts said the intervention would ease economic pressures, curb unemployment, and improve living standards across the state.
‘Better than doing nothing’
Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise (CPPE), commended the initiative. “Disbursing the money is commendable, and it is better than doing nothing,” he said, noting that some states had failed to introduce similar measures during challenging economic periods.
He argued that such support was necessary following economic reforms that had strained many budding enterprises. “These interventions will cushion entrepreneurs’ challenges, address unemployment and enhance the living standards of the people,” Mr Yusuf added.
Call for more concessionary lending
Benjamin Akinsoto, senior researcher at BAA Consult, welcomed the state government’s support, saying the scheme would provide critical financial assistance to small and medium-sized enterprises (SMEs). “Accessing capital from commercial banks currently has really been too expensive, so the intervention is necessary,” he said.
Mr Akinsoto urged governments at all levels to introduce more concessionary lending programmes for small businesses, which he described as “one of the major engines of growth, particularly for emerging economies facing structural challenges”.
Scheme details
The N5 billion fund, released as counterpart funding, targets cooperative-based micro, small and medium enterprises operating in Lagos. It is being delivered under the Lagos State Government–Bank of Industry (LASG-BOI) access-to-finance scheme, also known as LASMECO. Launched in May 2025, the initiative aims to strengthen cooperative-based small and medium-scale enterprises.
Folashade Bada Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade and Investment, confirmed the release during the state’s 2026 ministerial press briefing in Ikeja. (NAN)