The Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have begun discussions aimed at improving access to capital markets for small and medium enterprises (SMEs) in Nigeria.
This development follows a meeting between the two agencies, where strategies to support SME growth through long-term capital were discussed. The Director General of SEC, Dr Emomotimi Agama, and SMEDAN led the engagement.
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Support for alternative financing
During the meeting, both institutions agreed on the need to provide alternative financing opportunities for SMEs beyond traditional bank loans. They focused on building a structure that enables businesses to access patient capital to support growth.
“Expanding access to capital markets is critical to the long-term growth and competitiveness of Nigeria’s SMEs,” SMEDAN stated after the meeting. “For many businesses, it represents a vital pathway to scale operations and attract long-term investment.”
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Capacity building and business structuring
The partnership also aims to address the gaps that prevent SMEs from participating in the capital market. These include limited financial literacy, poor business structuring, and lack of awareness of available opportunities.
Both SEC and SMEDAN committed to strengthening business structures, increasing awareness, and building capacity to make more enterprises investment-ready.
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Role of the office of small business advocacy
As part of the plan, SMEDAN will collaborate with the newly established Office of Small Business Advocacy (OSBA) at SEC. The OSBA is expected to play a key role in helping SMEs navigate the capital market process and improve their financial knowledge.
The agencies hope the collaboration will lead to improved SME financing quality and reduce the sector’s dependence on bank credit.
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Next steps
The initiative is expected to open up fresh investment opportunities for small businesses across the country. It aligns with broader efforts to create a more supportive ecosystem for SME growth and sustainability.
The collaboration reflects ongoing efforts by public institutions to remove barriers that prevent small businesses from accessing finance and scaling their operations.
