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By Daniel Adaji
The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are collaborating to boost small and medium-sized enterprises (SMEs) access to finance.
Under the newly signed Memorandum of Understanding (MoU), both agencies aim to provide over 40,000 SMEs with direct access to long-term capital, while indirectly benefiting more than 40 million registered micro, small, and medium enterprises (MSMEs) nationwide.
The initiative seeks to reduce dependence on costly bank loans, spur job creation, and support Nigeria’s drive toward a $1 trillion economy.
Speaking at the signing ceremony in Abuja on Thursday, SEC Director-General, Dr. Emomotimi Agama, said the collaboration would deepen SME participation in the capital market and position them for sustainable growth.
“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,” Agama stated.
He added that integrating SMEs into the capital market would democratize wealth creation, fast-track development, and expand economic participation. According to him, the effort aligns with President Bola Tinubu’s economic agenda focused on employment, growth, and industrial productivity.
On his part, SMEDAN Director-General, Mr. Charles Odii, emphasized that the MoU would help small businesses overcome funding bottlenecks.
“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 will strengthen SMEs’ integration into the formal financial system and help them meet regulatory and governance standards required for capital market participation. It will also enhance their ability to raise funds through equity or debt instruments under SEC supervision.
As part of implementation, both agencies will roll out training and capacity-building programmes to boost SMEs’ financial literacy and corporate governance readiness. The SEC will contribute to SMEDAN’s five-year strategic framework to promote inclusive financing, while SMEDAN will identify and prepare viable SMEs for listing on recognized exchanges.
The collaboration will further support debt market participation, enabling creditworthy SMEs to issue debt securities and attract qualified investors. A three-day national SME conference is also planned to engage stakeholders, foster dialogue, and promote policy alignment.
To ensure effective execution, the MoU provides for a Joint Working Group (JWG) to oversee implementation and data sharing in compliance with the Nigeria Data Protection Act, 2023.