In a bold move to expand financing opportunities for small businesses, the Federal Government has launched an ambitious initiative to list at least 1,000 Small and Medium Enterprises (SMEs) on the Nigerian capital market. The goal is to enhance access to long-term funding, stimulate job creation, and fast-track the nation’s $1 trillion economy agenda.
The initiative was unveiled following 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 partnership seeks to provide innovative financing alternatives for Nigeria’s over 40 million registered Micro, Small, and Medium Enterprises (MSMEs) — a critical sector long constrained by limited access to affordable credit.
A New Chapter for SME Financing
Under the agreement, the SEC and SMEDAN will collaborate to help qualified SMEs raise funds through equity and debt instruments in line with market regulations. The framework is designed to integrate more businesses into the formal financial system by equipping them with the governance and regulatory capacity needed to participate in the capital market.
According to both agencies, the listings are expected to create wealth, expand employment opportunities, and accelerate economic growth, while strengthening the foundation for inclusive development.
Empowering Entrepreneurs through the Capital Market
Speaking at the signing ceremony, SEC Director-General, Dr. Emomotimi Agama, emphasized that the collaboration will bridge the funding gap faced by small enterprises and enable them to thrive within the capital market ecosystem.
“Capital remains the lifeblood of any enterprise,” Agama stated. “With about 40 million SMEs registered in Nigeria, our mission is to create a structured pathway for these businesses to raise funds, share ownership, and drive sustainable economic growth.”
He described the collaboration as a vital component of President Bola Tinubu’s broader reform agenda, which prioritizes employment generation, inclusive growth, and industrial expansion.
Reducing the Cost of Capital
SMEDAN Director-General, Mr. Charles Odii, highlighted that the high cost of borrowing remains a major challenge for small businesses in Nigeria. The new partnership, he explained, offers a practical alternative that connects SMEs directly to investors and capital market instruments.
“Capital is both scarce and expensive in our environment,” Odii noted. “Through this initiative, we are opening a new funding window that will empower at least 1,000 SMEs to raise capital, create jobs, and contribute to Nigeria’s economic transformation.”
Building Capacity and Confidence
Beyond facilitating listings, both institutions will jointly organize training programmes focused on financial literacy, corporate governance, and market participation. The SEC will also support SMEDAN’s five-year policy plan to foster inclusive and SME-friendly financial reforms.
Additionally, the collaboration will allow qualified SMEs to issue debt securities to institutional investors, helping them secure financing beyond traditional bank lending.
To strengthen coordination, a Joint Working Group (JWG) will oversee implementation, ensure effective data sharing under the Nigeria Data Protection Act, 2023, and monitor progress toward the set targets.
Towards a Trillion-Dollar Economy
As part of the rollout, the SEC and SMEDAN will co-host a three-day National SME Conference, bringing together policymakers, investors, and development partners to explore market opportunities and align strategies for SME growth.
Through this alliance, the Federal Government aims to unlock the full potential of Nigeria’s entrepreneurial landscape — positioning SMEs as a central pillar of national development and wealth creation.
