The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a strategic Memorandum of Understanding (MoU) aimed at expanding access to long-term financing for Nigeria’s over 40 million micro, small, and medium enterprises (MSMEs).
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Signed in Abuja, the partnership seeks to open new funding pathways through the Nigerian capital market, supporting SME growth, job creation, and the Federal Government’s ambition of building a $1 trillion economy.
SEC Director General Emomotimi Agama described capital as “the bedrock of any company,” noting that integrating SMEs into the capital market ecosystem is essential for their sustainability.
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Key Elements of the Partnership
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Enhanced Capital Access: Qualified SMEs will be supported to raise funds through equity or debt instruments in line with SEC regulations.
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Capacity Building: Both agencies will champion training on financial literacy, governance, and capital market participation.
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Policy Collaboration: SEC will contribute to SMEDAN’s five-year strategy for inclusive financing, while SMEDAN will guide qualified SMEs toward listing on recognised exchanges.
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New Funding Options: Credible SMEs will be able to issue debt securities to qualified investors, reducing reliance on bank loans.
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National SME Conference: A joint three-day conference will convene stakeholders to deepen market participation and policy dialogue.
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Joint Working Group: The MoU establishes a team to track implementation and ensure responsible data sharing under the Nigeria Data Protection Act, 2023.
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The SEC–SMEDAN collaboration marks a major step toward strengthening Nigeria’s SME financing ecosystem and expanding the role of the capital market in national economic development.
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