The Federal Government has launched a new initiative to help small and medium enterprises access long-term financing through the Nigerian capital market, aiming to reduce their reliance on expensive bank loans.
This comes after the Securities and Exchange Commission and the Small and Medium Enterprises Development Agency of Nigeria signed a Memorandum of Understanding in Abuja to formalise the collaboration.
Under the agreement, at least 1,000 SMEs are expected to be listed on the capital market, allowing them to raise funds for business expansion, technological upgrades and innovation. The plan is designed to promote transparency, corporate governance and sustainability among growing enterprises.
With over 40 million SMEs operating across the country, the agencies said the initiative will create a pathway for sustainable funding, job creation and stronger private sector participation in the economy, aligning with the Renewed Hope Agenda.
By opening the capital market to smaller businesses, the government aims to deepen financial inclusion, encourage enterprise growth and reduce pressure on traditional lending channels, ultimately positioning local SMEs for regional and global competitiveness.
