The Securities and Exchange Commission (SEC) has expressed commitment to encourage investment ready MSMEs to take advantage of the Capital Market to source Liquidity and Long-term Funding opportunities available at the Capital Market.
The commitment of the regulatory authority was expressed in a meeting held at Agency’s headquarters in Abuja with the management of MSME Business Development Services Limited led by Dr. Peter Ayim the Chief Executive Officer of the Organisation who went seeking strategic partnership with the Agency on the promotion and deepening of Capital Market Inclusion for MSMEs line with the aspirations of the National Financial Inclusion Policy and the National Policy on MSME.
The Agency noted that the task of deepening financial inclusion and literacy among MSMEs which currently stands at a rather dismal position requires concerted efforts and strategic multi level synergy, partnership and collaboration among stakeholders across board to accelerate and deepen Financial Inclusion and Financial Literacy in Nigeria especially among MSMEs.
The Agency however expressed deep concerns about the complex challenges associated with MSMEs in Nigeria.
They listed the weak nature of MSMEs, the orientation and mindset of MSME Operators, the absence of basic corporate governance structure, system, processes and procedures as well as their inability to adopt technology to automate their business operations as the critical inhibitors preventing MSMEs Inclusion in the Capital Market to attract investment.
The Agency noted that as a Regulator, the core mandate of the Agency is to protect both the investors and the investing public in line with the extant laws and regulations guiding the general operations of the Capital Market and that as a regulated sector, the Agency cannot circumvent its regulatory guidelines to accommodate nonconformity with standard rules and regulations.
Barrister Nestor Ikeagu, Director, Market Development who led the SEC Team at the meeting stated as part of the commitment of Agency to support Capital Market Inclusion for MSMEs, the Agency will be providing institutional support to MSME Business Development Services Limited and other stakeholders in the MSME Sector to carry out regular sensitisation, education and training of MSMEs on the workings of the Capital Market and what they will need to do to position themselves to take advantage of funding options at the Capital Market.
Barrister Ikeagu informed that beyond Venture Capital, Private Equity Investment and other of such Capital Market options, Crowdfunding and the Collective Investment Scheme (CIS) for which regulatory guidelines have been developed are veritable and readily available pathways to Capital Market Inclusion opportunity for MSMEs.
Speaking on the the meeting with SEC, Dr. Ayim informed that his organisation has developed an innovative market oriented and affordable Business Development Services (BDS) Delivery solution that is designed to facilitate ease of BDS delivery to help MSMEs strengthen their internal structural weaknesses and operational inefficiencies that will position them to take advantage of funding opportunities at the Capital Market.
Dr. Ayim also informed as part of the collective efforts to promote Capital Market Inclusion for MSMEs, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has endorsed the implementation of an MSME Investment Readiness Programme as a strategic intervention programme to identify and support MSMEs with growth potentials to accelerate and expand their businesses with access to Liquidity and Long-term Funding Options available at the Capital Market.
To support the successful implementation of the MSME Investment Readiness Programme, Dr. Ayim informed that his organisation has secured a strategic partnership with NASD PLC, a licensed Capital Market Operator as a Capital Market Inclusion Partner.