The Securities and Exchange Commission (SEC) says it is working to broaden access to market-based financing instruments for small and medium-sized enterprises (SMEs).
Emomotimi Agama, director-general (DG) of SEC, spoke during a meeting with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) on Tuesday in Abuja.
According to Agama, the commission will collaborate with SMEDAN to implement a joint nationwide sensitisation on ‘Financing SMEs through the Capital Market’.
He explained that the initiative will be carried out through its newly established office for strategic business advisory (OSBA), created to serve as the primary interface between SEC and SMEs seeking to raise capital via securities issuance.
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The director-general noted that SMEs represent over 90 percent of businesses in Nigeria and contribute significantly to employment and gross domestic product (GDP).
”Despite their importance, most SMEs face significant barriers in accessing long-term, affordable financing,” he said.
“SEC, through the OSBA, is actively working to broaden access to market-based financing instruments for SMEs.
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”SMEDAN is a statutory stakeholder in the Micro Small and Medium Enterprises space with deep knowledge, nationwide networks, and relevant data infrastructure to support SME development.
”A collaborative framework between SEC and SMEDAN will foster synergies for policy innovation, capacity building, and SME investment readiness.
”We also hope to design and deliver training programmes for SMEs on capital market funding opportunities, governance, and compliance as well as co-host a National SME Capital Market Summit in Q3 or Q4 to showcase financing opportunities for SMEs.”
Welcoming the collaboration, Charles Odii, the DG of SMEDAN, noted that the partnership would be a game-changer for Nigeria’s SME landscape.
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