The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have formed a strategic partnership aimed at improving financing opportunities for small and medium enterprises (SMEs) in Nigeria. This collaboration focuses on promoting access to capital markets as a viable means of funding for SMEs. During a recent meeting in Abuja, SEC’s Director General, Dr. Emomotimi Agama, emphasized that the initiative would include nationwide campaigns and co-branded financial literacy materials to better prepare SMEs for investment opportunities.
The partnership aligns with the SEC’s Office of Small Business Advocacy (OSBA), which was established to facilitate the engagement of SMEs in the capital market. According to Agama, SMEs make up more than 90% of Nigerian businesses and are crucial for employment and economic growth. However, these businesses often struggle with obtaining affordable long-term financing. The SEC and SMEDAN are working together to address these challenges by leveraging their combined resources, including reliable SME data and nationwide networks, to increase market access for these businesses.
In addition to the sensitization campaigns, the two agencies plan to create training programs focused on capital market funding opportunities, governance, and compliance. They also intend to co-host a National SME Capital Market Summit later in the year to showcase different financing tools available to SMEs, such as equity, bonds, and crowdfunding. This collaborative effort is seen as a key step toward fostering innovation, capacity building, and investment readiness for Nigerian SMEs.
SMEDAN’s Director General, Mr. Charles Odii, welcomed the initiative, describing the partnership as a game-changer for Nigeria’s SME ecosystem. He highlighted that the collaboration would introduce SMEs to non-traditional funding avenues, providing them with the necessary financial support to scale their businesses sustainably. With the backing of the SEC and SMEDAN, Nigerian SMEs can look forward to more opportunities to access long-term capital and contribute further to the nation’s economic development.
Source: This day