SEC, SMEDAN embark on enlightenment campaigns on SMEs financing

The Securities and Exchange Commission (SEC) is set to collaborate with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to implement joint nationwide sensitisation campaigns on “Financing SMEs through the Capital Market.”

The Director-General of the SEC, Dr Emomotimi Agama, stated this during a meeting with SMEDAN in Abuja on Tuesday. He noted that the agencies would also co-brand financial literacy content and SME investment-readiness toolkits.

Dr Agama explained that the purpose of the meeting was to initiate a strategic collaboration between the SEC and SMEDAN to support small business financing through access to capital.

The engagement, he said, aligns with the mandate of the SEC’s newly established Office of Small Business Advocacy (OSBA), created to serve as the primary interface between the SEC and SMEs seeking to raise capital via securities issuance.

According to him, “SMEs represent over 90 per cent of businesses in Nigeria and contribute significantly to employment and GDP. Despite their importance, most SMEs face significant barriers in accessing long-term, affordable financing.

“SEC, through the OSBA, is actively working to broaden access to market-based financing instruments for SMEs. SMEDAN is a statutory stakeholder in the MSME space, with deep knowledge, nationwide networks, and relevant data infrastructure to support SME development. A collaborative framework between the SEC and SMEDAN will foster synergies for policy innovation, capacity building, and SME investment readiness.”

The SEC DG disclosed that the Commission seeks to formalise a partnership with SMEDAN to implement coordinated interventions in data sharing, including secure access to reliable and verified SME data to enable capital market outreach and segmentation, as well as joint use of SME analytics for market readiness assessments and policy insights.

He said, “We also hope to design and deliver training programmes for SMEs on capital market funding opportunities, governance, and compliance. Additionally, we plan to co-host a National SME Capital Market Summit in Q3 or Q4 to showcase financing opportunities for SMEs.”

Dr Agama emphasised the need to harness Nigeria’s entrepreneurial potential through inclusive capital formation, saying, “There will be no economy without the capital market.

“The capital market is the engine room of any economy, and the reason companies are not approaching the market is due to a lack of funds. We are here to change the narrative because we are aware that SMEs are the backbone of our economy. By working with SMEDAN, we can create enabling frameworks that will help these businesses access long-term funding from the capital market.”

In addition, the Executive Commissioner, Legal and Enforcement, Ms Frana Chukwuogor, highlighted that, under the new Finance Act and the SEC’s regulation, owners of small businesses can raise funds from the capital market either through equity or debt. She added that the capital market is capable of providing the financial boost their businesses require.

In his remarks, the Director-General of SMEDAN, Mr Charles Odii, welcomed the collaboration, stating that the partnership would be a game-changer for Nigeria’s SME landscape.

“This alliance with the SEC aligns perfectly with our mandate to upscale and formalise the informal sector. By introducing SMEs to non-traditional funding avenues like bonds, equities, crowdfunding, and other market instruments, we can empower more businesses to scale sustainably,” he stated.

The meeting concluded with a shared commitment to establish a national working team to streamline SMEs’ onboarding processes for capital market participation, develop targeted investor education programmes, and create innovative financing models tailored to the needs of small businesses.

This partnership marks a pivotal step towards inclusive economic development and is expected to catalyse job creation, industrial growth, and financial inclusion across the country.

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