csrreporters 
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 improve access to long-term financing for small and medium enterprises (SMEs) through the Nigerian capital market.
The partnership aims to create alternative funding channels for over 40 million registered micro, small, and medium enterprises (MSMEs) in Nigeria helping them scale operations, generate employment, and contribute to the Federal Government’s $1 trillion economy target.
Speaking at the signing ceremony in Abuja, SEC Director General Emomotimi Agama said the collaboration would open up new financing opportunities for small businesses and integrate them into the nation’s capital market ecosystem.
Capital is the bedrock of any company. Today, we have about 40 million SMEs duly registered with SMEDAN. It’s important that, as a capital market, we create a pathway for these enterprises to raise funds for growth and sustainability He added that the initiative would encourage more SMEs to list on the Nigerian Exchange, enabling shared ownership and fostering wealth creation and economic expansion.
This partnership aligns with President Bola Tinubu’s agenda on employment, growth, and production. It represents a key step toward achieving the administration’s trillion-dollar economy vision,” Agama added.
In his remarks, SMEDAN Director-General Charles Odii described the partnership as a major breakthrough for small businesses facing the twin challenges of high capital costs and limited financing options.
“Capital in this part of the world is very expensive and scarce. Through this collaboration, we are creating a new funding source for medium scale enterprises. Our goal is to see at least 1,000 SMEs listed on the capital market, driving growth, creating wealth, and reducing unemployment in Nigeria,” Odii stated.
The MoU seeks to integrate MSMEs into the formal financial system by helping them meet the regulatory and governance standards required to access the capital market.
Key features of the agreement include, Facilitating access to long term capital through equity or debt instruments under SEC regulations. Capacity building programmes focused on financial literacy, governance, and capital market participation. SEC’s support for SMEDAN’s five year strategic framework to promote inclusive financing and SME friendly policies. SMEDAN’s role in identifying and preparing qualified businesses to list on recognised exchanges. Opportunities for credible SMEs to issue debt securities to qualified investors, expanding their funding options beyond bank loans.
Both institutions also plan to co host a three day National SME Conference to engage stakeholders, promote market opportunities, and advance policy discussions. Additionally, the MoU provides for the creation of a Joint Working Group to monitor implementation, ensure compliance, and facilitate data sharing in line with the Nigeria Data Protection Act, 2023.