— Agencies move to list 1,000 small businesses, drive Tinubu’s $1tn economy target
In a landmark move to ease funding challenges for 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 enhance access to long-term financing through the Nigerian capital market.
The partnership aims to open up alternative funding channels for more than 40 million micro, small, and medium enterprises (MSMEs) nationwide a critical step toward achieving President Bola Tinubu’s $1 trillion economy vision.
Speaking at the MoU signing in Abuja, SEC Director-General, Dr. Emomotimi Agama, said the collaboration would integrate SMEs into the capital market ecosystem and enable them to raise funds sustainably.
“Capital is the bedrock of any company. Today, we have about 40 million SMEs duly registered with SMEDAN, and it is important that as a capital market, we provide a route for them to raise capital for sustainability,” Agama stated.
“We also want to bring them into the pipeline of listed companies where they can democratize wealth, share part of their institutions with Nigerians, and accelerate economic growth.”
Dr. Agama described the agreement as aligning perfectly with the administration’s focus on growth, production, and employment generation.
On his part, SMEDAN Director-General, Mr. Charles Odii, said the MoU would help small businesses overcome the twin hurdles of costly and limited financing by leveraging capital market instruments.
“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. We have set a target of at least 1,000 SMEs listing on the capital market to galvanize growth, create wealth, and reduce unemployment.”
The agreement will facilitate MSMEs’ access to long-term financing via equity or debt securities under SEC regulations, while also supporting them to meet governance and reporting standards for market participation.
It also provides for capacity building and financial literacy initiatives, with both agencies set to organize training and awareness programmes for SMEs nationwide.
In addition, SEC will support SMEDAN’s five-year strategic policy framework to promote inclusive financing and SME-friendly market reforms, while SMEDAN will identify and prepare qualified enterprises for listing on recognized exchanges.
The MoU further establishes a Joint Working Group (JWG) to oversee implementation and ensure compliance with data protection laws under the Nigeria Data Protection Act, 2023.
Both agencies plan to host a three-day National SME Conference to engage stakeholders, promote capital market opportunities, and strengthen the financing ecosystem for small businesses across Nigeria.
