Stakeholders urge stronger governance, transparency, and structure to unlock long-term investment for small businesses
Efforts to expand financing options for Nigeria’s Small and Medium Enterprises (SMEs) gained fresh momentum as the Lagos Chamber of Commerce and Industry (LCCI), in partnership with NASD Plc, convened a stakeholders’ forum aimed at connecting small businesses to medium- and long-term capital through the capital market.
The forum, held in Lagos under the theme “Financing Growth: Propelling the Real Sector Through the Capital Market,” brought together entrepreneurs, regulators, financial experts, and development stakeholders to explore practical pathways for improving SME access to structured funding.
Discussions centred on the persistent financing gap confronting small businesses and the need to reposition them for capital market participation through improved governance, documentation, and strategic planning.
Participants repeatedly emphasised that access to investment capital is no longer driven by ambition alone, but by demonstrable business readiness—particularly in areas such as audited financial statements, transparent cash flow records, defined growth strategies, and credible corporate governance structures.
Speaking at the forum, the Managing Director of NASD Plc, Eguarekhide Longe, underscored the dual challenge facing the ecosystem: businesses need funding, while investors need viable opportunities.
“Businesses require more financing options, investors require more opportunities, and the capital market provides the bridge,” he said.
He explained that the initiative was designed to raise awareness among SMEs about capital market instruments and create stronger linkages between entrepreneurs and investors seeking long-term value creation.
Longe also noted that the collaboration between NASD Plc and LCCI was intended to deepen market participation by helping SMEs understand how to position themselves for funding, while also fostering partnerships that support sustainable expansion.
Supporting this perspective, the Head of Research and Strategy at NASD Plc, Oludare Fajimolu, highlighted the advantages of raising capital through the Over-the-Counter (OTC) market framework, including access to multiple financing structures, regulatory oversight, and enhanced investor visibility.
The Director-General of LCCI, Dr Chinyere Almona, described the real sector as the backbone of economic growth, stressing that SMEs require “patient capital” to scale effectively in a challenging business environment. She reaffirmed the chamber’s commitment to helping its members access medium- and long-term financing solutions.
From a regulatory standpoint, Ojone Kabir, representing the Securities and Exchange Commission, noted that Nigeria’s capital market offers a broad range of investment instruments, including equities and fixed-income securities, which SMEs can leverage for expansion and innovation.
A panel session moderated by Fajimolu further examined the barriers preventing SMEs from accessing capital market funding, with weak business structures and poor financial documentation identified as recurring challenges.
Participants agreed that beyond funding access, structural readiness remains critical. Many SMEs, it was noted, still lack the governance standards and financial transparency required to attract institutional investors.
The forum ultimately concluded with a unified call for SME operators to strengthen accountability systems, improve corporate governance, and adopt clearer financial reporting practices as essential steps toward qualifying for capital market financing.