The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding (MoU) to improve access to long-term financing for small and medium enterprises (SMEs) through the Nigerian capital market.
The partnership aims to create alternative funding sources for over 40 million micro, small, and medium enterprises (MSMEs), driving growth, job creation, and supporting the Federal Government’s $1 trillion economy target.
Director-General of SEC, Dr. Emomotimi Agama, said the initiative will open new funding routes for SMEs and integrate them into the capital market ecosystem.
He emphasized that the collaboration aligns with President Bola Tinubu’s Renewed Hope Agenda focused on employment, production, and sustainable economic growth.
SMEDAN’s Director-General, Mr. Charles Odii, noted that the agreement would help small businesses overcome the challenges of expensive and scarce capital by leveraging the capital market.
“Capital is very expensive and scarce in this part of the world. Through this partnership, we are creating another source of financing for medium-scale businesses,” he stated.
According to Odii, the MoU seeks to integrate MSMEs into the formal financial system and help them meet regulatory and governance standards required for market participation.
“The partnership will improve access to long-term financing by supporting qualifying MSMEs to raise funds through equity or debt securities under SEC regulations,” he added.
Both agencies will organize training and awareness programs to enhance financial literacy, corporate governance, and capital market participation among SMEs.
SEC will also support SMEDAN’s five-year strategic policy framework designed to promote inclusive financing and SME-friendly capital market policies.A Joint Working Group (JWG) will be established to oversee the MoU’s implementation in line with the Nigeria Data Protection Act, 2023.
The two agencies will also co-host a three-day national SME conference to engage stakeholders, explore market opportunities, and advance SME financing strategies.
Reporting by Sherifat Oyediran