By Aduragbemi Omiyale
Small and Medium Enterprises (SMEs) have been described as an essential component of the Nigerian economy as they serve as the main vehicle for job creation and income generation.
Managing Director of the Nigerian Exchange (NGX) Limited, Mr. Temi Popoola, while speaking at a small business event in Lagos recently, said efforts must be made to support the sector to sustain the economy running.
According to him, one of the ways to support SMEs includes access to funds to help them develop their businesses, which, in turn, will stimulate economic activities.
Mr. Popoola said that small business owners can look to the capital market for cheap funds, noting that the NGX Growth Board is a real platform dedicated to encouraging small-cap and growth-oriented companies. growth to leverage the capital market to raise long-term capital, drive growth and foster liquidity.
“We are also working to create the Technology Council, which will connect technology companies with a large pool of investors.
“We are currently working on a host of innovative approaches to attracting capital market funding for the technology part of the SME sector as well as less formal ways of attracting funding across the sector,” said the head of NGX at the 2022 annual business luncheon. by the Capital Market Solicitors Association.
“SMEs provide the economy with a constant flow of ideas, skills and innovation, which are essential to promote competition and an efficient allocation of resources.
“Despite the importance of this sector, it faces material challenges that continue to drive down productivity.
“Some of them include problems with electricity supply, substandard trade facilitation infrastructure, multiplicity of fees and taxes, and of course, lack of finance,” he added during themed event Capital market, start-up financing and syndicated financing: ability of small and medium-sized enterprises to access the capital market.
Mr. Popoola reaffirmed NGX’s commitment to developing the Nigerian capital market and providing inclusive platforms for a wide range of stakeholders, including SMEs, to access capital, emphasizing that “there It is important that capital markets can act as a catalyst for growth in this sector. The launch of the NGX Growth Board in 2019 is part of this commitment.