The Federal Government has unveiled a new initiative to open the Nigerian capital market to small businesses with a target of listing at least 1000 Micro Small and Medium Enterprises MSMEs. The move aims to boost access to long term funding promote job creation and fast track Nigeria's trillion dollar economy agenda.
The plan followed the signing of a Memorandum of Understanding between the Securities and Exchange Commission SEC and the Small and Medium Enterprises Development Agency of Nigeria SMEDAN in Abuja.
The partnership is designed to bridge the funding gap that limits MSME expansion by enabling qualified enterprises to raise funds through equity and debt instruments in line with market standards.
Speaking at the signing event the Director General of SEC Dr Emomotimi Agama said the collaboration would create new financing windows that empower MSMEs to grow sustainably within the capital market ecosystem.
He explained that the project aligns with President Bola Tinubu's economic reforms focused on job creation inclusive growth and industrial development.
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SMEDAN Director General Charles Odii said the initiative would lower the cost of capital for small businesses which have struggled to access affordable loans from commercial banks.
He added that through the capital market small enterprises will now have direct access to investors helping them expand operations and increase employment.
Both agencies also announced plans to conduct nationwide capacity building programs to improve SME readiness for market participation including training on financial literacy governance and transparency.
The partnership will be supervised by a Joint Working Group to monitor implementation and data sharing in line with the Nigeria Data Protection Act 2023.
Analysts believe the collaboration signals a major policy shift towards unlocking Nigeria's vast MSME potential and positioning the sector as the foundation for long term economic growth.
