Dr. Badewa T. Adejugbe-Williams

FG’s Plan to List 1,000 SMEs on the Nigerian Capital Market The Federal Government has launched a new initiative aimed at helping Small and Medium Enterprises (SMEs) access long-term financing through the Nigerian capital market. This move is part of ongoing efforts to boost economic growth, create jobs, and empower local businesses. The plan was officially set in motion after the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) signed a Memorandum of Understanding (MoU) in Abuja. The partnership is designed to bridge the gap between small businesses and the capital market. Under this agreement, the government targets to list at least 1,000 SMEs on the capital market. This means selected SMEs will be able to raise funds by offering shares to investors, just like bigger companies listed on the Nigerian Exchange. This access to equity financing reduces reliance on commercial bank loans, which often come with high interest rates and short repayment periods. Nigeria currently has over 40 million registered Micro, Small, and Medium Enterprises (MSMEs). However, most struggle to expand due to limited access to affordable financing. By connecting them to the capital market, the initiative seeks to: I. Provide sustainable funding options II. Encourage business expansion and innovation III. Create more jobs and reduce unemployment IV. Enhance transparency and corporate governance among SMEs This reform aligns with the Federal Government’s vision of economic diversification and private sector–driven growth under the Renewed Hope Agenda. A vibrant SME sector supported by the capital market will attract more local and foreign investment, stimulate industrialization, and strengthen Nigeria’s non-oil economy. The SEC–SMEDAN partnership marks a bold step toward transforming Nigeria’s business landscape. By opening the capital market to small enterprises, President Bola Ahmed Tinubu’s administration is not only promoting entrepreneurship but also laying the foundation for a more inclusive and resilient economy.