The Small and Medium Enterprises Development Agency of Nigeria in line with the aspirations of the National MSME Policy and National Financial Inclusion Policy of the Federal Government and the commitment of the Agency to support the exploration of alternative funding options for MSMEs has endorsed a strategic intervention programme to stimulate the supply side of investment ready MSMEs through the implementation of an MSME Investment Readiness Programme in compliance with the Regulatory framework of the Capital Market to help MSMEs with growth potentials tick all the boxes of an ideal investment checklist to enable enterprise operators explore alternative funding opportunities at Capital Market to grow and expand their businesses with ease.
According to the Agency, the Capital Market holds a lot of funding promise for the development and growth of MSMEs in Nigeria in terms of access to Liquidity and long term funding for MSMEs with growth potentials.
The Agency maintained that this is line with the aspirations of the National Financial Inclusion Policy of the Federal Government as it relates to facilitating the Inclusion and active participation of MSMEs in the Capital Market Sector to enable enterprise operators leverage alternative funding options at the Capital Market to grow and expand their businesses since access to traditional funding from conventional Commercial Banks remains a critical constraint for MSMEs.
The Agency however noted that the diverse and complex challenges of MSMEs such as internal structural weaknesses and operational inefficiencies among others prevents MSMEs from taking advantage of alternative funding options available at Capital Market to grow and expand their businesses.
The strategic intervention also seeks to facilitate the implementation of an innovative Collective Investment Scheme (CIS) for MSMEs to enable enterprise operators imbibe the culture and practice of investment.
The Agency is optimistic that this strategic Capital Market Inclusion intervention programme for MSMEs being implemented by MSME Business Development Services Limited will open up new vistas and herald a whole new paradigm to facilitating ease of access to Liquidity and long-term funding for MSMEs.
The Agency encourages strategic partnership with relevant stakeholders with unique value propositions in both the Public and Private Sector to the development and growth of MSMEs in Nigeria.
Speaking on the development, Dr. Peter Ayim the Principal Consultant of MSME Business Development Services Limited, a Federal Government Certified Business Advisory Firm and Licenced Business Development Service Provider (BDSP) implementing the intervention programme informed that the programme will be implemented using the Smart BDS, an innovative BDS Delivery solution designed to facilitate ease of BDS delivery services for MSMEs leveraging technology.
Dr. Ayim informed that the Smart BDS Solution with it unique value propositions is designed to facilitate the growth and expansion of MSMEs and that the Smart BDS will be delivered to MSMEs onsite, real-time
Dr. Ayim further informed that his organisation is having an ongoing partnership conversation with the Securities and Exchange Commission (SEC) from the Regulatory point of view and the Fund Managers Association of Nigeria (FMAN) to facilitate the successful and sustainable implementation of the strategic Capital Market Inclusion for MSMEs intervention programme.
Dr. Ayim also informed that his organisation has entered into strategic partnership with NASD PLC in the implementation of the intervention programmes.
Contributing, Mr. Eguarekhide Longe the Chief Executive Officer of NASD PLC opined that his organisation is excited about the prospects of MSME inclusion in the Capital Market as well as the opportunity to provide technical support to MSME Business Development Services Limited in the implementation of the innovative Capital Market Inclusion intervention programmes for MSMEs.
Also speaking on the development, Dr. Manzo Maigari, the Director General of Nigeria Agribusiness Group (NABG) commended the initiative and mentioned that a strategic intervention in Ginger farming supported by mastercard foundation has opened up enormous investment opportunity in the Ginger Value Chain worthy of attracting the attention of investors to grow and expand the subsector.
Dr. Maigari maintained that given the growing population and the increasing demand for food, the imperative of developing and investing in the Agribusiness value chain through the Capital Market to ensure food security and sustainability cannot be overemphasized.
