Fed Govt targets 1,000 SME listings on capital market
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The Federal Government has unveiled plans to list at least 1,000 Small and Medium Enterprises (SMEs) on the Nigerian capital market to boost access to long-term financing, spur economic growth, and reduce unemployment.
This initiative follows the signing of a Memorandum of Understanding (MoU) between the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja.
The agreement seeks to deepen collaboration between both institutions in providing financing alternatives for the country’s over 40 million registered Micro, Small, and Medium Enterprises (MSMEs).
According to the agencies, the listings will “galvanize growth, create wealth, and reduce unemployment in Nigeria,” while also advancing the Federal Government’s $1 trillion economy target.
The MoU is designed to improve access to long-term financing for SMEs by supporting qualifying businesses to raise funds through equity or debt securities under SEC regulations.
It also aims to integrate MSMEs into the formal financial system by helping them meet governance and regulatory standards required for market participation.
Director-General of the SEC, Dr. Emomotimi Agama, said the partnership would open new funding routes for SMEs and accelerate their inclusion in the capital market ecosystem.
“Capital is the bedrock of any company,” Agama said. “Today we have about 40 million Small and Medium Enterprises that are duly registered with the 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 raise capital for sustainability.
“We also want to bring them on board the pipeline of listed companies in Nigeria where they will be able to democratize wealth and share a part of their institutions with Nigerians, making sure that development is faster and leads to the growth of the economy.”
Agama added that the collaboration aligns with President Bola Tinubu’s economic reform agenda focused on employment generation, inclusive growth, and industrial expansion, describing the partnership as a strategic step toward realizing the administration’s trillion-dollar economy vision.
In his remarks, SMEDAN Director-General, Mr. Charles Odii, said the partnership would help small businesses overcome the barriers of limited and expensive capital by leveraging the capital market.
“Capital in this part of the world is very expensive and scarce,” Odii noted. “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.”
Under the agreement, both agencies will organize joint capacity-building programmes to improve SMEs’ financial literacy, corporate governance, and understanding of capital market operations.
The SEC will also contribute to SMEDAN’s five-year strategic policy framework to promote inclusive financing and SME-friendly market policies, while SMEDAN will identify and encourage qualified SMEs to list on recognized exchanges.
Furthermore, the partnership will enable creditworthy SMEs to issue debt securities to qualified investors, expanding their access to funds beyond traditional bank loans.
A three-day national SME conference will also be convened jointly by the SEC and SMEDAN to engage key stakeholders, promote market opportunities, and drive policy dialogue on SME financing.
The MoU provides for the establishment of a Joint Working Group (JWG) to monitor its implementation and ensure data sharing between the two agencies in compliance with the Nigeria Data Protection Act, 2023.
With this collaboration, the Federal Government aims to harness the full potential of the SME sector as a major driver of job creation, inclusive growth, and national development.
Fed Govt targets 1,000 SME listings on capital market - The Nation Newspaper
