The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have entered into a strategic partnership aimed at expanding access to long-term financing for small and medium enterprises through the Nigerian capital market.
The Memorandum of Understanding (MoU), signed in Abuja, seeks to open new funding channels for more than 40 million registered micro, small and medium enterprises nationwide. The alliance is positioned to enhance business expansion, job creation, and contribute to the Federal Government’s drive toward achieving a one trillion-dollar economy.
Director-General of SEC, Emomotimi Agama, stated that the collaboration would integrate SMEs into the capital market by creating alternative funding mechanisms beyond conventional bank lending. He emphasised that access to capital is vital for business survival and growth, particularly for enterprises looking to scale.
“Capital is the foundation of any enterprise. Currently, we have around 40 million SMEs duly registered with SMEDAN. It is critical that the capital market provides these businesses with avenues to raise funds for sustainability,” Agama said.
He further explained that the partnership would encourage more SMEs to list on the stock exchange, thereby fostering shared ownership, wealth distribution, and inclusive economic participation. According to him, the initiative aligns with President Bola Tinubu’s economic agenda centred on production, job creation, and sustainable growth — all geared towards the trillion-dollar economy vision.
SMEDAN’s Director-General, Charles Odii, hailed the MoU as a major milestone for small businesses struggling with costly and limited financing options. He noted that the collaboration will open access to patient capital and structured financial instruments previously unavailable to most entrepreneurs.
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“Capital is both expensive and scarce in our environment. With this partnership, we are creating a new source of funding for medium-scale businesses. We aim to facilitate at least 1,000 SMEs to list on the capital market. This will drive growth, foster wealth creation, and reduce unemployment across the country,” Odii stated.
The MoU is designed to guide MSMEs’ transition into the formal financial ecosystem by helping them meet governance, disclosure, and regulatory requirements necessary for equity or debt financing. It also provides for joint training initiatives, including financial literacy programmes, corporate governance workshops, and market readiness sessions to prepare business owners for capital raising.
Under the framework, SEC will support SMEDAN’s five-year strategic plan promoting inclusive finance and SME-friendly policies, while SMEDAN will identify high-potential businesses and prepare them for investor engagement and public listing.
The partnership further creates an opportunity for credible SMEs to issue debt securities to qualified investors, thereby gaining access to long-term funds without depending solely on commercial loans. Both agencies plan to host a national SME conference to engage industry stakeholders, promote market awareness, and strengthen policy dialogue around enterprise financing.
A Joint Working Group will be established to coordinate implementation, ensure efficient data exchange, and guarantee adherence to the Nigeria Data Protection Act, 2023.
The collaboration represents a transformative step toward repositioning Nigeria’s capital market as a reliable financing hub for the SME ecosystem, widely regarded as the backbone of the nation’s economic growth and development.
