By David Akinmola
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 funding for small and medium-sized enterprises (SMEs) through the capital market.
The agreement, signed at SEC headquarters in Abuja on Thursday, seeks to create a framework that will enable SMEs to leverage the Nigerian capital market for long-term financing, business expansion, and sustainability.
Speaking during the signing ceremony, SEC Director-General, Dr. Emomotimi Agama, said the collaboration is part of ongoing efforts to deepen the Nigerian capital market and ensure that more businesses tap into non-bank financing options.
According to Agama, SMEs remain critical to Nigeria’s economic growth and job creation, but many are constrained by inadequate access to finance. “Through this partnership, we intend to build capacity, enhance financial literacy, and facilitate the listing of qualified SMEs on appropriate market segments such as the NASD Growth Board and NGX Growth Board,” he said.
He added that the SEC will work closely with SMEDAN to simplify listing requirements, provide advisory support, and develop tailored instruments that meet the financing needs of small businesses.
On his part, the Director-General of SMEDAN, Mr. Charles Odii, described the MoU as a “major step towards democratizing access to finance for Nigerian entrepreneurs.”
Odii said the partnership will help bridge the funding gap for SMEs, which currently account for over 80 per cent of employment in Nigeria but face challenges in securing affordable and sustainable financing. “We are moving beyond traditional bank lending to unlock the potential of the capital market as a growth driver for small businesses,” he stated.
The two agencies also announced plans to jointly host capacity-building workshops, investment readiness programs, and awareness campaigns to educate SME operators on how to access equity financing and comply with capital market regulations.
Industry stakeholders have lauded the partnership, noting that it could enhance investor confidence, promote transparency, and support the federal government’s goal of driving inclusive economic growth through enterprise development.
The MoU is expected to pave the way for the creation of new investment channels that will allow SMEs to raise funds efficiently while offering investors opportunities to diversify their portfolios.
