The Federal Government has unveiled plans to list at least 1,000 Small and Medium Enterprises (SMEs) on the Nigerian capital market as part of efforts to improve access to long-term financing, stimulate economic growth, and tackle unemployment in the country.
This initiative follows the signing of a Memorandum of Understanding between the Securities and Exchange Commission (SEC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja.
The agreement seeks to deepen collaboration between both agencies to create new financing opportunities for over 40 million registered Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
A Step Toward a $1 Trillion Economy
According to SEC and SMEDAN, the plan to list 1,000 SMEs is expected to “galvanize growth, create wealth, and reduce unemployment,” while also supporting the Federal Government’s $1 trillion economy target.
The MoU aims to enhance access to long-term financing by helping qualifying businesses raise capital through equity or debt securities under SEC regulations. It will also support MSMEs in meeting corporate governance and regulatory standards needed for participation in the formal financial system.
SEC’s Commitment to SME Inclusion
The Director-General of the SEC, Dr. Emomotimi Agama, described the partnership as a landmark development that would unlock new funding channels for small businesses and accelerate their inclusion in Nigeria’s capital market ecosystem.
“Capital is the bedrock of any company,” Agama said. “Today, we have about 40 million Small and Medium Enterprises that are duly registered with the Small and Medium Enterprises Development Agency of Nigeria. It is important that as a capital market, we find a route for these enterprises to raise capital for sustainability.”
He further explained that bringing SMEs into the capital market would “democratize wealth and allow Nigerians to share in the success of these businesses,” thereby driving faster development and overall economic growth.
The partnership between SEC and SMEDAN represents a major milestone in Nigeria’s efforts to strengthen its SME sector — a key driver of job creation and innovation.
By integrating more SMEs into the formal financial ecosystem, the initiative is expected to reduce dependence on short-term and informal financing, create more stable funding options, and expand opportunities for business expansion across multiple sectors.
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