We’ll provide regulatory support for SMEs to access capital – SEC

By Rukayat Adeyemi
Lagos, Sept. 25, 2024 (NAN) The Securities and Exchange Commission (SEC) on Wednesday said that it was committed to creating a regulatory environment that supported easier access to capital for Small and Medium-scale Enterprises (SMEs).
Dr Emomotimi Agama, Director-General of SEC, represented by Mr Tunde Kamali, Director, Office of the director-general, SEC, said this at the World Stage Economic Summit 2024.
The summit had the theme, “Nigeria: Setting A Stage For Business And Economic Recovery.”
Agama said initiatives like the Growth Board of the Nigerian Exchange Ltd.(NGX) enabled smaller companies to list, gain visibility and access to much-needed funding.
He noted that SMEs are crucial to Nigeria’s economy, representing over 90 per cent of businesses and providing employment for millions.
“Access to finance remains a major barrier to their growth and sustainability.
“By helping SMEs scale and innovate, we can diversify our economy, reduce unemployment and promote inclusive growth,” he said.
According to the director-general, SEC is working to streamline regulatory processes to facilitate capital raising for infrastructure projects, while ensuring robust investor protection.
He said the goal of the commission was to establish Nigeria’s capital market as the premier destination for infrastructure financing in Africa.
Agama noted that financing of critical infrastructure was a top priority for Nigeria’s economic recovery.
He said that the capital market offered an ideal mechanism for funding large-scale projects, as demonstrated by successful infrastructure bonds and public-private partnerships (PPPs).
According to him, Nigeria faces a significant infrastructure deficit, estimated at three trillion dollars by the World Bank.
Agama added that bridging this gap requires a coordinated effort between the public and private sectors.
He said, in the primary market, as at August, the commission had approved a total of nine new issuances, with a combined value of N1.228 trillion.
Agama said these approvals included four rights issues totalling N508.933 billion, one private placement valued at N10.05 billion, and four public offers amounting to N709.944 billion.
“These figures reflect the growing confidence in our capital market and underscores a reinvigorated commission that is committed to facilitating orderly capital formation in Nigeria.
“SEC is committed to positioning the capital market as a catalyst for Nigeria’s development goals.
“By fostering innovation and ensuring that the market meets the evolving needs of investors and the economy, we are creating an environment that supports sustainable growth and financial inclusion.
“Through strategic public-private partnerships, financial literacy initiatives, and fintech advancements, we are deepening the capital market’s reach.
“Also, ensuring that it serves as a platform for job creation, infrastructure financing and broader economic resilience,” he said.
Agama called for collaboration across all sectors to unlock the full potential of Nigeria’s capital market, and set the stage for a stronger, more resilient economy.
He noted that government patronage of the capital market could significantly benefit both the market and the broader economy.
The director-general said that by issuing bonds or long-term securities, the government enhanced market depth and liquidity, attracting institutional investors seeking stable returns.
He noted that this established a benchmark for pricing private-sector debt, boosting investor confidence and making the capital market more predictable.
In his welcome address, Mr Segun Adeleye, President, World Stage Ltd., said amid daunting challenges confronting the nation, government and businesses had no choice than to align strategies for the common good in economic recovery.
Adeleye posited that this could be achieved through stable power supply, job creation, exchange rate management, inflation control, banking recapitalisation, fiscal and debt management.
He also suggested structural reforms, human capital development and economic diversification.
According to him, irrespective of diverse views that many may share about Nigeria, the country has enormous potential and opportunities to overcome its challenges and achieve sustainable and inclusive growth.
“Many have been advocating economic diversification and structural transformation for government to reduce dependence on oil exports and diversify into other sectors, such as agriculture, manufacturing and services.
“The government is also being advised to support the development of value chains and clusters, and enhance the linkages between the oil and non-oil sectors.
“This is while, the government also fosters regional integration and trade and takes advantage of the opportunities offered by the African Continental Free Trade Area (AfCFTA),” he said.