At the 2022 Annual Business Luncheon of the Capital Market Solicitors Association (CMSA), thought leaders and capital market stakeholders gathered to address one of the biggest hurdles facing Nigeria’s economy—limited access to funding for Small and Medium Enterprises (SMEs).
Delivering the keynote address, Temi Popoola, Chief Executive Officer of Nigerian Exchange Limited (NGX), emphasized that technological innovation holds the key to bridging the financing gap that has long hindered SMEs from reaching their full potential as drivers of economic growth.
Speaking on the event’s theme, “Capital Market, Startup Financing and Syndicate Funding: Ability of Small and Medium-sized Enterprises to Access the Capital Market,” Popoola highlighted the economic importance of Nigeria’s 40 million SMEs. Over the past five years, he noted, these businesses have contributed roughly 48% to the nation’s Gross Domestic Product (GDP), accounted for half of the industrial workforce, and represented close to 90% of manufacturing businesses by volume.
Popoola argued that to sustainably address the financing needs of this vital sector, the capital market must leverage emerging technologies and digital finance tools. “Digital transformation is key to developing tailored financial products such as equity-based funding models that suit SME growth needs,” he noted.
Referring to the 2020 Global Partnership for Financial Inclusion report titled “Promoting Digital and Innovative SME Financing,” Popoola underscored how digital platforms and tools are redefining how small businesses access funding and manage operations. The report outlines how technologies such as Artificial Intelligence (AI), blockchain, the Internet of Things (IoT), machine learning, big data, cloud solutions, and smart APIs are revolutionizing SME finance.
In his opening remarks, Adeleke Alex-Adedipe, Partner at DOA and Chairman of the CMSA Conference Planning Committee, echoed similar sentiments. He described the luncheon as a pivotal forum for driving policy conversations and market reforms that can unlock long-term financial opportunities for small businesses through the capital market.
“These solutions have the potential to provide SMEs with the long-term capital they need to scale operations, drive innovation, and catalyze broader economic transformation in Nigeria,” Alex-Adedipe said.
The luncheon concluded with a consensus among participants: digital innovation, strategic partnerships, and policy support are crucial in unlocking the full potential of Nigeria’s SME sector through capital market engagement.
