The Securities and Exchange Commission (SEC) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a landmark Memorandum of Understanding (MoU) aimed at giving SMEs better access to Nigeria’s capital markets.
This partnership is designed to open new financing avenues for over 40 million registered micro, small, and medium enterprises (MSMEs), often shut out of traditional bank lending.
During the ceremony in Abuja, SEC’s Director-General, Dr. Emomotimi Agama, described capital as the “bedrock of any company” and said this collaboration would help SMEs grow, list on exchanges, and join national wealth creation.
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SMEDAN’s Director-General, Charles Odii, concurred, calling the alliance a critical step toward reducing the “high cost and scarcity of capital” that hinders small business growth. He revealed a goal to facilitate the listing of 1,000 SMEs on Nigeria’s exchanges.
To make this work, the MoU sets up a Joint Working Group (JWG) that will oversee implementation, ensure compliance with the Nigeria Data Protection Act (2023), and host programs on financial literacy, corporate governance, and market participation across states.
SMEs already make up almost 40% of Nigeria’s GDP, according to the Nigeria Economic Summit Group. But many suffer from restricted access to capital, bank credit to the private sector has dropped sharply, from 48% in H1 2024 to just 2.8% in H1 2025.
By bridging SMEs directly with equity and debt markets, this agreement aims to reduce dependency on high-interest bank loans and bring more businesses into the formal financial system.
This SEC–SMEDAN MoU could reshape the financing landscape for Nigerian SMEs. By enabling access to capital markets, the agreement offers a path out of high-cost credit, supports listing of companies, and deepens inclusion in Nigeria’s growth trajectory.