In what could become one of the most ambitious financial interventions in Nigeria’s recent history, the Lagos State Government has launched a N500 billion MSME fund, specifically targeted at women traders. The move, officially unveiled at the grand finale of the ECOWAS Caravan 2025 on July 14, is already sparking conversation across West Africa.
Governor Babajide Sanwo-Olu approved the initiative as part of a broader plan to strengthen the state’s informal economy and expand access to finance for small businesses. The Bank of Industry (BOI) is also matching the state’s commitment with another N500 billion, raising the total value of the fund to N1 trillion, a scale never before seen in state-led MSME financing in Nigeria.
The fund comes at a crucial time. Thousands of micro and small enterprises across Lagos especially in markets like Balogun, Mile 2, and Oyingbo are grappling with inflation, limited capital, and poor access to credit. For many women in these spaces, survival often depends on daily sales and informal loans that offer little stability.
Lagos officials say the new fund is a direct response to those issues, offering not just capital, but hope.
One of the most significant features of the Lagos MSME fund is its non-collateral requirement. Unlike conventional loans that demand land titles or other major assets, this fund removes those barriers, opening the door for traders who may have never qualified for bank loans before.
According to Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, the fund is designed to reach informal sector businesses, especially market women and small-scale shop owners, with minimal bureaucratic hurdles.
Beyond the lack of collateral, the loan scheme comes with a six-month moratorium—giving businesses time to stabilise before repayments begin. Some beneficiaries, particularly those backed by cooperatives, may also access the funds at zero interest for a defined period. These terms are nearly unheard of in Nigeria’s lending environment and could provide real relief for traders facing cashflow challenges.
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