Economists have commended the Lagos State Government for disbursing N5 billion to support small businesses across the state.
They said the intervention would stimulate economic growth, promote enterprise development, and strengthen the state’s economy.
The experts spoke in separate interviews with reporters in Lagos on Sunday.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), praised the initiative.
He described the disbursement as a commendable effort to support entrepreneurs facing economic pressures.
“Disbursing the money is commendable, and it is better than doing nothing,” Yusuf said.
He noted that some states had failed to introduce similar measures to assist businesses during challenging economic periods.
“The fact that the government is releasing this credit to entrepreneurs will lead to their expansion,” he added.
Yusuf said the intervention would empower businesses and help reduce the difficulties faced by many entrepreneurs.
“These interventions will cushion entrepreneurs’ challenges, address unemployment, and improve living standards,” he stated.
He explained that such measures were necessary following economic reforms that increased pressures on emerging businesses.
“We had always anticipated this kind of support after reforms that strained many budding enterprises,” Yusuf said.
Similarly, Mr. Benjamin Akinsoto, Senior Researcher at BAA Consult, welcomed the state government’s support.
He said the scheme would provide critical financial assistance to small and medium enterprises.
“The initiative has been largely positive because access to funds has always been a constraint for most entrepreneurs,” Akinsoto noted.
He added that borrowing from commercial banks had become increasingly expensive for many business owners.
“Accessing capital from banks is currently very costly, so this intervention is necessary,” he explained.
Akinsoto urged sub-national governments to introduce more concessionary lending programs for small businesses.
“Lower-level governments should implement these interventions for entrepreneurs,” he said.
He described small businesses as major drivers of economic growth worldwide.
“They are key engines of growth, especially for emerging economies facing structural challenges,” Akinsoto added.
It was reported that the Lagos State Government released N5 billion as counterpart funding.
The fund targets cooperative-based Micro, Small, and Medium Enterprises operating within the state.
The intervention is part of the Lagos State Government–Bank of Industry (LASG-BOI) Access to Finance for MSMEs scheme.
Known as LASMECO, the initiative aims to foster business growth and expansion.
The scheme was launched in May 2025 to strengthen cooperative-based small and medium enterprises.
Folashade Bada Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade, and Investment, confirmed the release.
She announced this during the state’s 2026 Ministerial Press Briefing held in Ikeja.
