NGX reaffirms its commitment to building structures for SME finance – The Sun Nigeria

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By Chinwendu Obienyi

The Nigerian Exchange Limited (NGX), has reaffirmed its commitment to providing SMEs with access to investors, seeking viable investment returns.

NGX Managing Director Temi Popoola made the disclosure during his keynote address at the 2022 Annual Business Luncheon hosted by the Capital Market Solicitors Association in Lagos recently.

The event which themed “Capital Market, Startup Funding and Syndicate Funding: Ability of Small and Medium Enterprises to Access the Capital Market” allowed capital market stakeholders to discuss and propose solutions to current business constraints faced by SMEs.

In his opening speech, Popoola noted that the theme of the event is appropriate as the role of SMEs in economic development cannot be overstated.

According to him, Nigerian SMEs are essential components of the economy and are increasingly serving as the main vehicle for job creation and income generation.

“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 financing,” he added.

Popoola reaffirmed NGX’s commitment to expanding the Nigerian capital market and providing inclusive platforms for a wide range of stakeholders, including SMEs, to access capital.

“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. The NGX Growth Board is a true platform dedicated to encouraging small-cap, growth-oriented companies to leverage the capital market to raise long-term capital, drive growth and foster liquidity.

We are also working on the creation of the Technology Board, which will connect technology companies to 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 for the whole sector.”

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