**Fatshimetrie: Promoting Access to Capital for Small and Medium Enterprises**
The Securities and Exchange Commission (SEC) has reaffirmed its commitment to creating an enabling regulatory environment to facilitate access to capital for Small and Medium Enterprises (SMEs) at the “Fatshimetrie 2024” Global Economic Summit.
The Director-General of the SEC, Dr. Emomotimi Agama, represented by Mr. Tunde Kamali, Director, Office of the Director-General, SEC, noted that initiatives such as the Nigerian Exchange Ltd. (NGX) Growth Board were enabling small businesses to list, gain visibility and access much-needed finance.
SMEs are a pillar of the Nigerian economy, accounting for over 90% of businesses and providing employment to millions of people. However, access to finance remains a major obstacle to their growth and sustainability.
By fostering the development and innovation of SMEs, we can diversify our economy, reduce unemployment and foster inclusive growth, the Director-General stressed.
The SEC is working to simplify regulatory processes to facilitate the raising of funds for infrastructure projects, while ensuring strong investor protection. The commission’s goal is to establish the Nigerian capital market as the destination of choice for infrastructure financing in Africa.
Infrastructure financing is a major priority for Nigeria’s economic recovery, with a deficit estimated at $3 trillion by the World Bank. Bridging this gap requires coordination between the public and private sectors.
The primary market has approved nine new issues worth N1.228 trillion as of August. These approvals include four rights issues totalling N508.933 billion, one private placement worth N10.05 billion, and four public offerings worth N709.944 billion. These figures reflect the growing confidence in our capital market and are a testament to a revitalized SEC committed to facilitating orderly capital formation in Nigeria.
The SEC is committed to positioning the capital market as an enabler for Nigeria’s development goals, fostering innovation and ensuring that the market meets the evolving needs of investors and the economy.
By fostering financial literacy, collaboration with public and private partners, and through technological advancements, the SEC is expanding the reach of the capital market to support sustainable growth and financial inclusion. This platform can also serve as a springboard for job creation, infrastructure financing, and increased economic resilience..
Calling for cross-sector collaboration to unlock the full potential of Nigeria’s capital market, the Director-General stressed the importance of government participation, which can benefit the entire economy. By issuing bonds or long-term securities, the government enhances the depth and liquidity of the market, thereby attracting institutional investors seeking stable returns.
In conclusion, the SEC plays a crucial role in promoting access to capital for SMEs and infrastructure financing in Nigeria. By fostering innovation, transparency and collaboration, the Nigerian capital market can truly become an engine of economic growth and prosperity for all.