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 boost access to long-term financing for small and medium enterprises (SMEs) through the Nigerian capital market.
The partnership aims to provide alternative financing channels for more than 40 million registered micro, small, and medium enterprises (MSMEs) in the country, enhancing their growth potential, job creation capacity, and contribution to the Federal Government’s $1 trillion economy target.
Speaking at the signing ceremony in Abuja, SEC Director-General, Dr. Emomotimi Agama, described the agreement as a major step toward integrating SMEs into the capital market ecosystem and promoting inclusive economic growth.
‘Capital is the bedrock of any business. It is important that as a capital market, we create routes for small and medium-scale enterprises to raise funds for sustainability. We also want to bring them into the pipeline of listed companies, democratizing wealth and accelerating development in line with the administration’s trillion-dollar economy vision,’ Agama said.
He added that the initiative aligns with President Bola Tinubu’s economic agenda focused on job creation, productivity, and sustainable growth.
On his part, SMEDAN Director-General, Mr. Charles Odii, said the MoU would help small businesses overcome the challenges of expensive and limited access to credit by tapping into the capital market for funding.
‘Capital in this part of the world is both expensive and scarce. Through this collaboration, we’re creating another source of financing for medium-scale businesses. Our target is to have at least 1,000 SMEs listed on the market. This will drive growth, generate wealth, and reduce unemployment,’ Odii noted.
Under the agreement, both agencies will work together to integrate MSMEs into the formal financial system, strengthen their governance and compliance frameworks, and enhance their eligibility to raise funds through equity and debt securities.
The collaboration also includes capacity-building initiatives such as financial literacy workshops, investor education programmes, and corporate governance training to prepare SMEs for capital market participation.
Additionally, SEC will contribute to SMEDAN’s five-year strategic policy framework to foster inclusive financing and SME-friendly regulations, while SMEDAN will identify and guide qualifying businesses toward market listing.
A Joint Working Group (JWG) will be established to monitor implementation, facilitate data sharing in line with the Nigeria Data Protection Act, 2023, and coordinate the upcoming three-day national SME conference to promote stakeholder engagement and policy dialogue.
Through this strategic partnership, the SEC and SMEDAN aim to expand funding options for Nigerian SMEs, deepen the capital market, and strengthen the foundation for sustainable economic transformation.