The Securities and Exchange Commission has announced plans to support Small and Medium Enterprises in accessing capital by offering shares to investors through online platforms, allowing backers to receive equity stakes and participate in the businesses’ profits and growth.
Speaking at the 2024 National MSME conference, the Director General of SEC, Emomotimi Agama represented by the Executive Commissioner for Corporate Services, Mrs. Samiya Hassan Usman, emphasized that digital platforms would play a vital role in driving sustainable growth for SMEs.
He emphasized that the significance of promoting innovation-driven economic growth is encapsulated in the conference theme, “GROW Nigerian: Sustaining a Digital and Innovation-Driven Economy.”
He further stated that the SEC’s 2021 crowdfunding guidelines play a key role in accomplishing this goal by establishing the regulatory structure for online equity platforms that offer clear investment opportunities.
Equity crowdfunding platforms need to be registered with the SEC and follow regulatory guidelines, such as maintaining accurate records.
He noted that the SEC has implemented investment restrictions tied to income or net worth in order to safeguard retail investors.
Agama noted that SEC has renewed its dedication to creating a positive atmosphere for MSMEs to obtain funding, expand their companies, and use financial technology to grow.
He added that the capital market provides MSMEs with the opportunity to secure long-term funding for expanding operations, investing in technology, and engaging in international trade through equity, bonds, and other financial tools.
“By aligning the ‘GROW Nigerian’ initiative with capital market resources, we can help unlock the potential of these enterprises and drive sustainable economic growth,” he remarked.
He hailed the Ministry of Industry, Trade, and Investment, along with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), for their unwavering dedication to MSME development. He expressed optimism that the conference outcomes would result in new strategies and partnerships to further empower MSMEs and secure Nigeria’s economic future.
“Our shared commitment to unlocking the potential of MSMEs is essential for creating an innovation-driven economy, and the capital market must remain a vital enabler in this process,” he concluded.
