FG Targets 1,000 SME Listings On Nigerian Capital Market to Power Nigeria’s $1 Trillion Economy Vision
The Big Picture
The Federal Government of Nigeria has unveiled a major initiative to list at least 1,000 Small and Medium Enterprises (SMEs) on the Nigerian capital market.
This move is aimed at improving access to long-term financing, boosting job creation, and driving Nigeria’s $1 trillion economy target.
The plan follows the signing of a Memorandum of Understanding (MoU) between the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja.
Why It Matters
Nigeria currently has over 40 million registered MSMEs, which form the backbone of the economy but often struggle with limited access to affordable capital.
This new partnership is designed to:
• Open up the capital market as an alternative to bank loans.
• Encourage equity and debt listings for SMEs under SEC’s regulatory framework.
• Integrate MSMEs into the formal financial system by improving corporate governance and compliance standards.
️ Voices from the Leadership
Dr. Emomotimi Agama, Director-General of the SEC, emphasized that:
“Capital is the bedrock of any company. With over 40 million SMEs registered, the capital market must create avenues for these businesses to raise funds for sustainability.”
He added that the collaboration will help SMEs “democratize wealth”, allowing more Nigerians to own stakes in growing businesses and accelerating national development.
Charles Odii, Director-General of SMEDAN, echoed similar optimism:
“Capital in this part of the world is very expensive and scarce. Through this partnership, we are creating another financing source for SMEs. Our goal is to have at least 1,000 SME listings that will galvanize growth, create wealth, and reduce unemployment.”
Strategic Goals of the MoU
The SEC–SMEDAN collaboration aims to:
• Support SMEs in meeting governance and listing requirements.
• Help qualifying businesses raise funds through shares or bonds.
• Enhance financial literacy and capacity through joint training programs.
• Promote inclusive financing policies within SMEDAN’s five-year strategic plan.
• Encourage debt securities issuance for creditworthy SMEs, providing an alternative to expensive loans.
️ Implementation Framework
A Joint Working Group (JWG) will oversee the MoU’s implementation, ensuring data sharing and compliance with the Nigeria Data Protection Act (2023).
Additionally, both agencies plan to host a three-day National SME Conference, bringing together regulators, investors, and entrepreneurs to:
• Discuss SME financing opportunities
• Strengthen policy dialogue
• Build investor confidence
The Bigger Vision
This initiative aligns perfectly with President Bola Tinubu’s economic reform agenda, which focuses on:
• Job creation
• Industrial expansion
• Inclusive and sustainable economic growth
By deepening SME participation in the capital market, the government aims to unlock the sector’s potential as a major engine of growth and national prosperity.
Investor Insight
For investors, this plan presents exciting opportunities:
• It could widen the investment pool on NGX with new SME listings.
• Encourage innovation-driven startups to access public capital.
• Create a pathway for wealth creation and diversified portfolios.
✨ In Summary
The SEC–SMEDAN partnership marks a transformational moment for Nigeria’s economy. By targeting 1,000 SME listings, the Federal Government is not only bridging the funding gap but also empowering entrepreneurs, creating jobs, and building a stronger, more inclusive financial ecosystem.
The Big Picture
The Federal Government of Nigeria has unveiled a major initiative to list at least 1,000 Small and Medium Enterprises (SMEs) on the Nigerian capital market.
This move is aimed at improving access to long-term financing, boosting job creation, and driving Nigeria’s $1 trillion economy target.
The plan follows the signing of a Memorandum of Understanding (MoU) between the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja.
Why It Matters
Nigeria currently has over 40 million registered MSMEs, which form the backbone of the economy but often struggle with limited access to affordable capital.
This new partnership is designed to:
• Open up the capital market as an alternative to bank loans.
• Encourage equity and debt listings for SMEs under SEC’s regulatory framework.
• Integrate MSMEs into the formal financial system by improving corporate governance and compliance standards.
️ Voices from the Leadership
Dr. Emomotimi Agama, Director-General of the SEC, emphasized that:
“Capital is the bedrock of any company. With over 40 million SMEs registered, the capital market must create avenues for these businesses to raise funds for sustainability.”
He added that the collaboration will help SMEs “democratize wealth”, allowing more Nigerians to own stakes in growing businesses and accelerating national development.
Charles Odii, Director-General of SMEDAN, echoed similar optimism:
“Capital in this part of the world is very expensive and scarce. Through this partnership, we are creating another financing source for SMEs. Our goal is to have at least 1,000 SME listings that will galvanize growth, create wealth, and reduce unemployment.”
Strategic Goals of the MoU
The SEC–SMEDAN collaboration aims to:
• Support SMEs in meeting governance and listing requirements.
• Help qualifying businesses raise funds through shares or bonds.
• Enhance financial literacy and capacity through joint training programs.
• Promote inclusive financing policies within SMEDAN’s five-year strategic plan.
• Encourage debt securities issuance for creditworthy SMEs, providing an alternative to expensive loans.
️ Implementation Framework
A Joint Working Group (JWG) will oversee the MoU’s implementation, ensuring data sharing and compliance with the Nigeria Data Protection Act (2023).
Additionally, both agencies plan to host a three-day National SME Conference, bringing together regulators, investors, and entrepreneurs to:
• Discuss SME financing opportunities
• Strengthen policy dialogue
• Build investor confidence
The Bigger Vision
This initiative aligns perfectly with President Bola Tinubu’s economic reform agenda, which focuses on:
• Job creation
• Industrial expansion
• Inclusive and sustainable economic growth
By deepening SME participation in the capital market, the government aims to unlock the sector’s potential as a major engine of growth and national prosperity.
Investor Insight
For investors, this plan presents exciting opportunities:
• It could widen the investment pool on NGX with new SME listings.
• Encourage innovation-driven startups to access public capital.
• Create a pathway for wealth creation and diversified portfolios.
✨ In Summary
The SEC–SMEDAN partnership marks a transformational moment for Nigeria’s economy. By targeting 1,000 SME listings, the Federal Government is not only bridging the funding gap but also empowering entrepreneurs, creating jobs, and building a stronger, more inclusive financial ecosystem.