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SEC, SMEDAN partnership targets 40 million micro, small, and medium enterprises (MSMEs).
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SMEs to access equity and debt financing via capital market, reducing reliance on bank loans.
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Initiative aligned with FG’s $1 trillion economy vision and job creation agenda.
The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have formalised a strategic collaboration to expand SME access to the Nigerian capital market, opening new financing avenues for over 40 million registered micro, small, and medium enterprises (MSMEs).
The Memorandum of Understanding (MoU), signed in Abuja, seeks to bridge the persistent financing gap for SMEs, enabling them to raise funds through capital market instruments such as shares and bonds, rather than relying solely on expensive bank loans.
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Capital as the Engine of SME Growth
Speaking at the ceremony, SEC Director-General, Dr. Emomotimi Agama, emphasised the partnership’s potential to transform SMEs into sustainable engines of wealth creation:
“Capital is the bedrock of any company. This collaboration will enable SMEs to raise funds, grow sustainably, and become integral to Nigeria’s wealth creation ecosystem.”
Agama added that the initiative aligns with President Bola Tinubu’s economic agenda, focusing on growth, productivity, and job creation, while expanding the pipeline of companies eligible for public investment.
Reducing the Cost of Capital
SMEDAN Director-General, Mr. Charles Odii, described the MoU as a critical step toward addressing the high cost and scarcity of capital that has long hindered small businesses in Nigeria.
“Through this partnership, we are creating another source of financing for medium-scale businesses. Our goal is to facilitate the listing of at least 1,000 SMEs on the Nigerian capital market,” Odii stated.
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The collaboration will also integrate SMEs into the formal financial system by supporting regulatory compliance, governance, and capacity-building through nationwide training programs, awareness campaigns, and corporate governance workshops.
Small and medium enterprises account for nearly 40% of Nigeria’s GDP, according to the Nigeria Economic Summit Group (NESG). Yet, stringent lending conditions and high interest rates have left many SMEs starved of capital, with private sector credit falling from 48% in H1 2024 to 2.8% in H1 2025.
The MoU establishes a Joint Working Group (JWG) to oversee implementation, ensure compliance with the Nigeria Data Protection Act, 2023, and co-host a three-day National SME Conference to engage stakeholders, promote investment opportunities, and refine policies that make the capital market more inclusive.
