In a bid to foster sustainable growth for small and medium enterprises (SMEs), the Securities and Exchange Commission (SEC) has partnered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to launch nationwide campaigns aimed at financing SMEs through the capital market.
The announcement was made during a meeting in Abuja, where Dr. Emomotimi Agama, the Director-General of the SEC, revealed plans for joint sensitisation campaigns to help SMEs tap into capital market opportunities. These efforts will include co-branded financial literacy content and the creation of SME investment-readiness toolkits.
A Strategic Collaboration for SME Growth
Dr. Agama explained that the collaboration between SEC and SMEDAN is designed to enhance small businesses’ access to capital through the capital market. This initiative is in line with the SEC’s newly established Office of Small Business Advocacy (OSBA), which serves as the primary interface for SMEs seeking capital through securities issuance.
“SMEs represent over 90% of businesses in Nigeria and play a vital role in employment and GDP,” Dr. Agama stated. However, he pointed out that most SMEs still face major challenges in accessing long-term and affordable financing. Through the partnership, the SEC hopes to create a comprehensive framework to enable easier access to market-based financing instruments for SMEs.
Data Sharing and Capacity Building for SMEs
Dr. Agama also emphasized that the collaboration would focus on data sharing and the joint use of SME analytics for better market readiness assessments. This includes sharing reliable, verified SME data to help SMEs connect with potential investors and improve policy decisions.
As part of the initiative, both agencies will work to design training programs for small businesses, covering areas such as capital market funding opportunities, governance, and compliance. There are also plans to co-host a National SME Capital Market Summit in Q3 or Q4 of 2025, showcasing various financing options available to small businesses.
Empowering SMEs to Access Long-term Funding
Dr. Agama made a strong case for the vital role of the capital market in driving economic growth. He stressed, “The capital market is the engine room of any economy, and SMEs are its backbone. We are here to change the narrative by creating enabling frameworks for SMEs to access long-term funding.”
He also highlighted the provisions of the Finance Act and the SEC’s regulations, which now allow small businesses to raise funds through equity or debt instruments in the capital market, providing them with the much-needed financial support to grow and scale their operations.
SMEDAN’s Commitment to Empowering the Informal Sector
The Director-General of SMEDAN, Mr. Charles Odii, expressed his enthusiasm for the partnership, calling it a game-changer for the Nigerian SME landscape. “This alliance with the SEC aligns perfectly with our mandate to formalise the informal sector and introduce SMEs to alternative funding sources such as bonds, equities, crowdfunding, and other market instruments,” he said.
Building a Future of Financial Inclusion and Economic Growth
The meeting concluded with a joint commitment to create a national working team that will streamline SMEs’ processes for engaging with the capital market. Both agencies are also focused on developing targeted investor education programs and crafting innovative financing models to meet the unique needs of small businesses.
This partnership marks a significant step towards inclusive economic development in Nigeria. By helping SMEs access much-needed financing, the collaboration is expected to drive job creation, industrial growth, and financial inclusion across the country.
