SEC, SMEDAN Partner to List 1,000 SMEs on Capital Market
By Patience Ikpeme
The federal government is aiming to list as many as 1,000 Small and Medium Enterprises (SMEs) on the capital market to “galvanize growth, create wealth, and reduce unemployment in Nigeria.”
To achieve this goal, the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding (MoU) aimed at improving access to long-term financing for SMEs through the Nigerian capital market.
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, the Director-General of the SEC, Dr. Emomotimi Agama, 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. Today we have about 40 million Small and Medium Enterprises that are duly registered with Small and Medium Enterprises Development Agency of Nigeria 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,” Dr. Agama stated.
He added that: “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 to lead to the growth of the economy.”
Dr. Agama noted that 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.
SMEDAN Director-General, Mr. Charles Odii, 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. 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.”
The agreement aims to deepen the integration of MSMEs into the formal financial system and help them meet the regulatory and governance standards required for market participation.
The MoU’s major benefits include: Improving access to long-term financing by supporting qualifying MSMEs to raise funds through equity or debt securities. Capacity building, through joint training and awareness programs to educate SMEs on capital market participation, financial literacy, and corporate governance; and Facilitating debt market participation by guiding creditworthy SMEs to issue debt securities, widening their financing options beyond traditional bank loans.
The SEC will also contribute to SMEDAN’s five-year strategic policy framework, while SMEDAN will identify and encourage qualifying SMEs to list on recognized exchanges. Both institutions have also agreed to jointly organize a three-day national SME conference and establish a Joint Working Group (JWG) to monitor implementation.
