In a strategic move aimed at strengthening Nigeria’s small business sector, the Securities and Exchange Commission (SEC) is teaming up with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to roll out joint nationwide awareness campaigns on financing SMEs through the capital market.
Speaking during a meeting in Abuja on Tuesday, SEC Director-General Emomotimi Agama revealed that the collaboration will involve co-branded financial literacy initiatives and SME investment-readiness toolkits designed to empower small businesses across the country.
Agama explained that the partnership is part of a broader plan to enhance access to capital market opportunities for small and medium-sized enterprises (SMEs). He noted that this initiative is in line with the goals of the SEC’s newly established Office of Small Business Advocacy (OSBA)—a dedicated unit serving as a bridge between the Commission and SMEs aiming to raise funds through securities offerings.
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Highlighting the vital role SMEs play in the Nigerian economy, Agama said, “SMEs represent over 90 percent of businesses in Nigeria and contribute significantly to employment and GDP.” Despite their significance, he acknowledged that many SMEs continue to face hurdles in securing long-term and affordable financing.
To address these challenges, the SEC, through the OSBA, is working to expand access to market-based financing options. According to Agama, SMEDAN brings valuable expertise, extensive grassroots networks, and essential data infrastructure that can significantly support SME development and funding access.
He added that a structured collaboration between the two organizations would promote policy innovation, capacity development, and SME investment readiness through a combination of education, tools, and support mechanisms.
Agama also mentioned plans to formalize the partnership through several joint efforts. These include creating secure channels for accessing credible SME data, leveraging SME analytics to assess market readiness, and launching training programs focused on capital market funding, corporate governance, and regulatory compliance. A key highlight of the roadmap is the proposed National SME Capital Market Summit, set to take place in the third or fourth quarter of the year. This event will serve as a platform to spotlight funding opportunities for small businesses.
Stressing the importance of capital formation in national development, Agama stated, “There will be no economy without the capital market. The capital market is the engine room of any economy. The reason companies are not approaching the market is due to lack of funds. We are here to change the narrative because we know that SMEs are the backbone of our economy. By working with SMEDAN, we can create enabling frameworks to help these businesses access long-term funding.”
Frana Chukwuogor, SEC’s Executive Commissioner for Legal and Enforcement, also weighed in. She emphasized that recent updates under the Finance Act and SEC regulations now make it possible for small business owners to raise capital via equity or debt instruments, allowing them to scale more efficiently. “The capital market can provide the financial boost SMEs require,” she noted.
SMEDAN’s Director-General, Charles Odii, echoed the enthusiasm, describing the collaboration as a potential game-changer for Nigeria’s SME ecosystem. He said, “This alliance with the SEC aligns perfectly with SMEDAN’s mandate to upscale and formalize the informal sector.” By introducing SMEs to alternative funding channels such as bonds, equities, crowdfunding, and other market instruments, Odii believes more businesses will be equipped to grow sustainably.
The meeting concluded with a joint resolve to establish a national working group to streamline onboarding processes for SMEs looking to tap into the capital market. The team will also focus on developing targeted investor education programs and crafting innovative financing models tailored to small business needs.
This partnership is poised to be a turning point for Nigeria’s economic landscape, with the potential to drive job creation, industrial development, and financial inclusion across the country.
