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 in Lagos on Sunday.

Muda Yusuf, the chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), praised the initiative. 

He described the disbursement as a commendable effort toward supporting entrepreneurs facing economic pressures. 

“Disbursing the money is commendable, and it is better than doing nothing,” Mr 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 value of credit to entrepreneurs will lead to their expansion,” he said.

Mr Yusuf said the intervention would empower businesses and help reduce the difficulties affecting many entrepreneurs.

“These interventions will cushion entrepreneurs’ challenges, address unemployment and enhance the living standards of the people,” he said.

He explained that such measures were needed following economic reforms that had increased pressures on many emerging businesses.

“We had always envisaged this kind of support after reforms that strained many budding businesses,” Mr Yusuf said. 

Similarly, 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-scale enterprises. 

“The initiative has largely been positive because access to funds was always a constraint for most entrepreneurs,” Mr Akinsoto said. 

He added that obtaining loans from commercial banks had become increasingly expensive for many business owners. 

“Accessing capital from commercial banks currently has really been too expensive, so the intervention is necessary,” he said. 

Mr Akinsoto urged governments at all levels to introduce more concessionary lending programmes for small businesses.

“Government at the lower levels should have these interventions for entrepreneurs,” he said. 

He described small businesses as major drivers of economic expansion in many countries globally. 

“They are one of the major engines of growth, particularly for emerging economies facing structural challenges,” Mr Akinsoto said.

The Lagos State government released N5 billion as counterpart funding.

The fund is targeted at cooperative-based micro, small and medium enterprises operating within the state. 

The intervention is being implemented under the Lagos State Government–Bank of Industry (LASG-BOI) access-to-finance scheme for MSMEs. 

The initiative, also known as LASMECO, aims to improve business growth and expansion. 

The scheme was launched in May 2025 to strengthen cooperative-based small and medium-scale enterprises.

Folashade Bada Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade and Investment, confirmed the release. 

She disclosed the development during the state’s 2026 ministerial press briefing held in Ikeja.

(NAN)