In a significant move to bolster small businesses, 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 SME access to long-term financing through the capital market.
The collaboration is designed to create alternative funding routes for over 40 million registered MSMEs, helping them grow, create jobs, and contribute to the Federal Government’s target of building a $1 trillion economy.
The Director-General of SEC, Dr. Emomotimi Agama, stated that the initiative would integrate SMEs into the capital market ecosystem, aligning with President Bola Tinubu’s agenda on economic growth and development.
His SMEDAN counterpart, Mr. Charles Odii, highlighted the critical need for the partnership, noting that “capital is very expensive and scarce in this part of the world.”
He explained that the agreement will help qualified businesses overcome this by raising funds through equity or debt securities under SEC regulations.
Key components of the partnership include:
· Organizing training programs to educate SMEs on capital market participation.
· Identifying and preparing qualifying SMEs to list on recognized exchanges.
· Establishing a Joint Working Group to monitor the implementation of the MoU.
Both agencies will also co-host a national SME conference to engage stakeholders and drive policy discussions.
Reporting by Sherifat Oyediran