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 capital market.
According to a statement on Friday, the partnership is designed to create alternative sources of capital for the country’s over 40 million registered micro, small, and medium enterprises (MSMEs), helping them grow, create jobs, and contribute to the federal government’s $1 trillion economy target.
Speaking at the signing ceremony in Abuja, Emomotimi Agama, director-general of the SEC, said the initiative would open new funding routes for SMEs and integrate them into the capital market ecosystem.
“Capital is the bedrock of any company,” Agama said.
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“Today we have about 40 million Small and Medium Enterprises that are duly registered with SMEDAN and it is important that as a capital market, we are able to find a route for these small and medium scale enterprises to be able to raise capital for sustainability.”
“We also want to bring them on board the pipeline of listed companies in Nigeria where they will be able to democratize wealth and share a part of their institutions with Nigerians, making sure that development is faster and leads to the growth of the economy.”
The SEC chief said the collaboration aligns with President Bola Tinubu’s agenda on employment, growth, development, and production, describing it as a critical step toward achieving the administration’s trillion-dollar economy vision.
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‘PARTNERSHIP WILL HELP SMES OVERCOME CAPITAL SCARCITY’
On his part, Charles Odii, SMEDAN’s director-general, said the MoU would enable small businesses to overcome the high cost and scarcity of capital by leveraging the capital market.
“Capital in this part of the world is very expensive and scarce,” Odii said.
“Through this collaboration, we are creating another source of financing for our medium-scale businesses.
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“We have set ourselves a target of at least 1,000 SMEs listing on the capital market. This will galvanize growth, create wealth, and reduce unemployment in Nigeria.”
According to the SEC statement, the agreement seeks to integrate MSMEs into the formal financial system and improve their access to long-term financing through equity and debt securities under its regulations.
The commission said the partnership would also allow joint training on financial literacy and governance, while SMEDAN will identify eligible SMEs for listing on recognised exchanges.
The capital market regulator said a joint working group will oversee implementation, data sharing, and a national SME conference to promote market access and investment opportunities.
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