Sanwo-Olu Reaffirms Support for Cooperatives, Unveils N10bn MSME Fund

Sanwo-Olu Reaffirms Support for Cooperatives, Unveils N10bn MSME Fund
Rolls Out Cooperative Loan Scheme at 9% Interest
Says Cooperatives Key to Peace, Prosperity

Lagos State Governor Babajide Sanwo-Olu has unveiled a ₦10 billion financing initiative for cooperative-based businesses, reaffirming his administration’s commitment to grassroots economic empowerment and describing cooperative societies as vital partners in promoting peace, prosperity and inclusive development.

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Eko Hot Blog reports that the governor made the announcement on Saturday during the 2026 International Day of Cooperatives celebration held at the LASCOFED Multipurpose Hall in Ogba, Ikeja.

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Speaking on the theme, “Cooperatives for a Peaceful World,” Sanwo-Olu said cooperative societies have continued to serve as effective tools for poverty reduction, job creation, financial inclusion and economic resilience across Lagos State.

Sanwo-Olu Reaffirms Support for Cooperatives, Unveils N10bn MSME Fund — Permanent Secretary, Commerce, Cooperatives, Trade and Investment, Babatunde Onigbanjo and LASCOFED President, Oladipo Shobule at the event

Represented by the Permanent Secretary, Ministry of Commerce, Cooperatives, Trade and Investment, Babatunde Onigbanjo, the governor noted that lasting peace is built on economic opportunities, social justice and shared prosperity rather than merely the absence of conflict.

“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 unite people around common goals regardless of ethnic, religious or social differences,” he said.

Sanwo-Olu disclosed that more than 16,000 cooperative societies are currently registered in Lagos State, operating through 24 Area Offices and making significant contributions to grassroots economic development.

He highlighted the Lagos State Access to Finance for SMEs Through Cooperatives (LASMECO) programme, which allows qualified cooperative-based micro, small and medium enterprises to access loans of up to ₦10 million without conventional collateral.

According to him, the state government recently released the first ₦5 billion tranche of the fund.

“This is the largest cooperative-led MSME financing intervention in the history of our ministry, and LASMECO has now been adopted by the National Council on Industry, Trade and Investment as a model framework for MSME financing reform across Nigeria,” the governor stated.

He explained that the scheme is being implemented in partnership with the Bank of Industry and Sterling Bank, offering beneficiaries a 9 per cent single-digit interest rate, a 6-month moratorium, and a 36-month repayment period through a digital platform designed to promote transparency.

Sanwo-Olu 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 embrace transparency, accountability, innovation and digital transformation, stressing that their leadership would determine the future sustainability of the movement.

“The responsibility entrusted to you is enormous. You are custodians of the aspirations, resources and confidence of your members,” he said, adding that the success of any cooperative should be measured by the number of lives transformed through business growth, home ownership, education and financial security.

Earlier, the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, described cooperative societies as powerful instruments for inclusive economic growth and social stability.

Represented by the ministry’s Director of Cooperatives, Dr. Adeyinka Adeyemi, the commissioner said the cooperative movement continues to drive entrepreneurship, financial inclusion and employment opportunities across Lagos.

She assured stakeholders that the ministry would continue strengthening regulation, expanding financial inclusion and building partnerships to support the sector.

Also speaking, President of the Lagos State Cooperative Federation (LASCOFED), Oladipo Shobule, described cooperative societies as socio-economic stabilisers that promote economic justice and community development.

According to him, access to affordable finance and economic opportunities naturally reduces inequality, restores hope and contributes to peace.

Shobule also announced the commissioning of LASCOFED Online CoopRadio, a digital platform aimed at improving cooperative education and member engagement.

He commended the Lagos State Government for its sustained support for cooperative societies and urged members to remain committed to unity, accountability and collective development.