At its 2026 MSME Day event, the state announced grants ranging from ₦100,000 to ₦250,000 for selected businesses. Some beneficiaries also received equipment, including freezers, grinding machines and sewing machines.

However, the grants were awarded to selected beneficiaries rather than through an open application programme. The Lagos State Microfinance and Enterprise Development Corporation (LASMECO) loan scheme operates differently.

Lagos MSME Grants: Who Can Benefit?

The recent grants support selected small businesses, with awards varying according to the beneficiary. Some recipients also received equipment to help them operate or expand their businesses.

The announcement does not establish an open application process for the grants. Therefore, entrepreneurs should not assume they can apply for the same awards or receive automatic approval.

Businesses seeking funding should distinguish these grants from LASMECO, which provides repayable loans to qualifying cooperative businesses.

LASMECO Loans: Amount, Interest Rate and Repayment Terms

LASMECO offers eligible businesses loans of up to ₦10 million at an annual interest rate of nine per cent. The scheme targets qualifying cooperative businesses operating in Lagos State.

The loan programme provides a six-month moratorium and repayment periods of up to 36 months for term loans. Earlier official programme details listed shorter repayment periods for working-capital loans.

The state has said it released ₦5 billion as part of a ₦10 billion financing arrangement. The Bank of Industry and Sterling Bank are official implementing partners.

Applicants must belong to a registered cooperative society. Although recent reports describe the scheme as non-collateralised, earlier details mention a borrower contribution and guarantees from cooperatives and Sterling Bank.

Applicants should request the latest written terms before proceeding.

How Lagos Businesses Can Prepare for LASMECO Funding

Entrepreneurs interested in LASMECO should contact the relevant Lagos ministry, the Bank of Industry, Sterling Bank or an authorised accelerator for guidance.

They should confirm the required documents, eligible sectors, guarantees, repayment terms and any approved fees before submitting an application.

No dedicated public application portal or new deadline has been confirmed in the information available. Applicants should therefore be cautious of adverts promising automatic approval and avoid paying unauthorised individuals.

Businesses can prepare by joining a registered cooperative, maintaining proper financial records and formalising their operations. These steps do not guarantee approval, but they may help applicants meet the scheme’s requirements.

Ultimately, the recent MSME grants and LASMECO loans are separate forms of support. While selected businesses received the announced grants, the loan scheme requires applicants to meet its eligibility conditions and repay any funds received.

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The post Lagos MSMEs: Who Can Access the New Grants and N10m LASMECO Loans? appeared first on NBG Africa.