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Lagos State Governor Babajide Sanwo-Olu has said the state government’s N10 billion cooperative financing initiative is already strengthening the growth of micro, small and medium enterprises (MSMEs), expanding access to finance and accelerating grassroots economic development across the state.
The governor disclosed this on Saturday at the 2026 International Day of Cooperatives celebration held at the LASCOFED Multipurpose Hall, Ogba, Ikeja, where he reaffirmed his administration’s commitment to empowering cooperative societies as catalysts for inclusive economic growth and sustainable peace.
Represented by the Permanent Secretary, Ministry of Commerce, Cooperatives, Trade and Investment, Babatunde Onigbanjo, Sanwo-Olu said the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO) scheme has become a game-changer for cooperative-based businesses by providing affordable financing without the burden of conventional collateral.
According to him, the state has already released the first N5 billion tranche of the N10 billion fund, describing the initiative as the largest cooperative-led MSME financing programme in the history of the ministry.
He noted that qualified cooperative-based MSMEs can access loans of up to N10 million at a single-digit interest rate of nine per cent, with a six-month moratorium and a repayment period of up to 36 months through a transparent digital platform.
Sanwo-Olu added that the impact of the initiative has earned national recognition, revealing that LASMECO has been adopted by the National Council on Industry, Trade and Investment as a model framework for MSME financing reforms across Nigeria.
The governor said cooperatives remain critical partners in reducing poverty, creating jobs and promoting financial inclusion, stressing that the state currently has more than 16,000 registered cooperative societies operating through 24 area offices.
Speaking on the theme, “Cooperatives for a Peaceful World,” Sanwo-Olu maintained that sustainable peace is driven by economic opportunities and shared prosperity.
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“Peace is not merely the absence of conflict; it is the presence of opportunity, equity, social justice, economic security and shared prosperity. Cooperatives have consistently demonstrated their ability to bring people together around shared goals, irrespective of social, ethnic, religious or economic differences,” he said.
The governor also highlighted other initiatives aimed at strengthening the cooperative sector, including the implementation of the Lagos State Industrial Policy (2025–2030), the expansion of the Lagos State Cooperative College (LASCOCO), and enhanced regulatory oversight in collaboration with the Police Special Fraud Unit to safeguard members’ investments.
He urged cooperative leaders to uphold transparency, accountability and innovation, noting that the long-term sustainability of the movement depends on responsible leadership.
In her welcome address, the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Bada Ambrose-Medebem, described cooperative societies as powerful instruments for inclusive economic growth, poverty reduction and community development.
Represented by the Director of Cooperatives, Dr Adeyinka Adeyemi, the commissioner said the state’s cooperative movement continues to play a significant role in entrepreneurship development, financial inclusion and employment generation.
Also speaking, President of the Lagos State Cooperative Federation (LASCOFED), Oladipo Shobule, described cooperatives as socio-economic stabilisers that foster economic justice, shared prosperity and sustainable development.
He announced the commissioning of LASCOFED’s Online CoopRadio platform to improve cooperative education and member engagement while urging societies to support the federation’s development initiatives, including the proposed LASCOFED Cooperative Centre in Mojoda, Epe.
