The Federal Government has introduced a new initiative aimed at helping Small and Medium Enterprises (SMEs) gain access to long-term financing through the Nigerian capital market. The move is part of ongoing economic reforms to drive growth, create jobs, and strengthen local businesses across the country.
The plan was unveiled after the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) signed a Memorandum of Understanding (MoU) in Abuja. The agreement sets out a framework to connect SMEs directly to the capital market, reducing their dependence on high-interest bank loans.
According to officials, the government plans to list at least 1,000 SMEs on the Nigerian Exchange. This will allow small businesses to raise capital by selling shares to investors, a model typically reserved for larger corporations. The initiative supports the government’s goal of improving access to equity financing for local enterprises.
Dr. Emomotimi Agama, Director-General of SEC, said the collaboration would “bridge the financing gap faced by millions of Nigerian SMEs.” He noted that “by integrating these businesses into the capital market, we are creating opportunities for sustainable funding, job creation, and national economic growth.”
Nigeria currently has over 40 million registered Micro, Small, and Medium Enterprises (MSMEs). Many face challenges such as inadequate funding and short-term credit facilities. By providing access to the capital market, the initiative aims to promote innovation, expansion, and better corporate governance among SMEs.
The project also aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which focuses on economic diversification and private sector–led development. “A vibrant SME sector will boost investor confidence, attract both local and foreign capital, and enhance Nigeria’s non-oil revenue base,” said Dr. Agama.
The SEC–SMEDAN partnership is regarded as a major step toward transforming Nigeria’s business environment. It aims to empower entrepreneurs, strengthen the financial market, and build a more inclusive economy through capital market investment opportunities.