The Lagos Chamber of Commerce and Industry (LCCI), in collaboration with NASD Plc, recently organized a stakeholders' forum aimed at exposing Micro, Small and Medium Enterprises (MSMEs) to alternative sources of medium and long-term financing. The event, held in Lagos, addressed one of the major challenges facing MSMEs in Nigeria: access to funding.
Forum Theme and Focus
The forum, themed 'Financing Growth: Propelling the Real Sector Through the Capital Market', brought together entrepreneurs, regulators, and financial experts to explore strategies for improving MSME access to capital market funding while boosting private sector growth. Participants emphasized that businesses seeking investment must demonstrate a clear business model, a defined growth strategy, sound corporate governance, audited financial statements, and transparent cash flow records.
Keynote Remarks by LCCI President
Speaking at the event, LCCI President Leye Kupoluyi noted that despite inflation numbers moderating somewhat, lending rates remain very high and growth remains uneven, with agriculture and manufacturing facing the worst structural constraints. He lamented that Nigeria is not industrializing and that manufacturers, agro-processors, and MSMEs are borrowing at rates that crush margins before a single product leaves the factory floor. He described this as a financing environment that tests survival rather than building industries.
However, Kupoluyi highlighted that capital exists. Nigeria's Pension Fund Administrators (PFAs) closed 2025 with assets approaching N20 trillion, actively expanding participation in both equities and fixed-income markets. The Nigerian Stock Exchange (NSE) posted a 48.12% gain in 2025, consolidating its bullish run, while foreign reserves stood at $45.4 billion as of December 2025. The NGX market capitalization for equities is forecast to hit N170 trillion in 2026. He stressed that what has been missing is a deliberate, structured mechanism to channel that capital purposefully into the productive economy, which is why LCCI and NASD are coming together to help MSMEs explore alternative funding avenues.
NASD Plc Perspectives
Managing Director of NASD Plc, Eguarekhide Longe, said businesses need greater access to growth capital while investors also require more opportunities to deploy funds. He explained that the forum was jointly initiated by NASD and LCCI to raise awareness about capital market opportunities and promote strategic partnerships that support sustainable business expansion. He added that the Over-the-Counter (OTC) market offers SMEs multiple capital-raising options, improved visibility, regulatory backing, and direct access to investors.
Head of Research and Strategy at NASD Plc, Oludare Fajimolu, highlighted that inadequate business structure remains a major barrier preventing SMEs from accessing capital market funding. He noted that improved transparency and governance standards would significantly increase investor confidence and participation in MSME financing.
LCCI Director-General's Remarks
Director-General of LCCI, Dr. Chinyere Almona, described the real sector as the engine of economic growth, stressing the need for patient capital to support business expansion. She said the initiative aligns with the chamber's goal of helping MSME members access long-term financing through the capital market.
SEC Representation
Representing the Director-General of the Securities and Exchange Commission (SEC), Deputy Director Ojone Kabir encouraged MSMEs to take advantage of diverse investment instruments such as equities, fixed-income securities, and other asset classes to scale their operations. She urged entrepreneurs to leverage capital market platforms to innovate and expand their businesses sustainably.
Panel Session Insights
During a panel session, stakeholders discussed key challenges facing SMEs, with weak business structures and poor financial documentation identified as major obstacles. They noted that many companies lack proper documents, have not filed audited yearly returns with the Corporate Affairs Commission (CAC), have poor financial documentation, and incomplete or unaudited financial statements. Many businesses never see the need to get auditors, lack compliance structures, internal controls, and policies, all of which affect their ability to access proper funding.
Panelists stressed that positioning a company for investment purposes without a proper compliant structure is impossible, as no investor would be willing to pump capital into such companies. They urged businesses to ensure records are up to date and financial documentation is complete to attract investors and improve access to capital market funding.
