The Securities and Exchange Commission (SEC) has announced plans to expand access to capital market financing instruments for Nigeria’s Small and Medium Enterprises (SMEs), a move it says is critical to supporting the country’s economic growth.
The Director-General of SEC disclosed this during a strategic meeting with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja. He said the commission has established the Office of Small Business Advocacy (OSBA) to serve as the key point of engagement for SMEs interested in raising capital through securities issuance.
According to SEC, the goal of the OSBA is to address the longstanding barriers SMEs face in accessing affordable, long-term financing. Despite making up over 90 percent of businesses in Nigeria and contributing significantly to employment and GDP, most SMEs struggle to raise funds beyond traditional banking channels.
Through the OSBA, SEC plans to collaborate with SMEDAN on a nationwide sensitisation campaign titled “Financing SMEs through the Capital Market.” The initiative aims to educate SMEs about how to leverage capital market instruments to fund their growth, while also building their capacity in areas like governance, compliance, and investor readiness.
The collaboration will also include joint policy development, capacity-building efforts, and a proposed National SME Capital Market Summit expected later in the year. This summit will serve as a platform to showcase financing opportunities available in the capital market for SMEs across different sectors.
