LCCI, NASD rally SMEs on capital market funding

The Lagos Chamber of Commerce and Industry (LCCI), in partnership with NASD Plc, has organized a forum aimed at exposing Small and Medium Enterprises (SMEs) to alternative sources of medium- and long-term financing. The event, themed ‘Financing Growth: Propelling the Real Sector Through the Capital Market,’ convened entrepreneurs, regulators, and other stakeholders to explore strategies for enhancing SMEs' access to capital market funding.

Key requirements for attracting investment were identified during the forum. These include a clear business model, a well-defined growth strategy, sound corporate governance, audited financial statements, and transparent cash flow records. Eguarekhide Longe, Managing Director of NASD Plc, emphasized the dual need for Nigerian businesses to access more growth capital and for investors to find more deployment opportunities, stating, "The capital market provides the bridge."

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Businesses require more financing options, investors require more opportunities, and the capital market provides the bridge.

Longe explained that the forum was jointly initiated by NASD and LCCI to boost awareness of capital market opportunities for SMEs, ease their access to funding, and foster strategic partnerships for sustainable business growth. Oludare Fajimolu, Head of Research and Strategy at NASD Plc, highlighted the benefits of using the Over-the-Counter Exchange, such as diverse capital-raising solutions, a robust regulatory framework, increased market visibility, and direct investor access.

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The real sector as the engine of economic growth, stressing that operators required patient capital to expand and thrive.

Dr. Chinyere Almona, Director-General of LCCI, described the real sector as the engine of economic growth, noting that operators need patient capital to expand. She affirmed the forum aligns with the LCCI's commitment to helping its SME members secure medium- and long-term financing. Ojone Kabir, Deputy Director at the Securities and Exchange Commission, encouraged participants to leverage the capital market's wide range of investment opportunities, including equities and fixed-income securities, to scale their businesses.

A panel session identified inadequate business structure as a major obstacle limiting SMEs' access to capital market funding. The forum concluded with a call for SME promoters to strengthen transparency, accountability, and corporate governance practices to attract investors and improve their chances of securing capital market funding.

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The capital market offered a wide range of investment opportunities, including equities, fixed-income securities, and other asset classes.