With access to funding being one of the major challenges of most Micro, Small and Medium Enterprises (MSMEs) in Nigeria, the Lagos Chamber of Commerce and Industry (LCCI), in collaboration with NASD Plc, held a stakeholders’ forum aimed at exposing MSMEs to alternative sources of medium and long-term financing in Lagos.

The forum, themed: ‘Financing Growth: Propelling the Real Sector Through the Capital Market’, brought together entrepreneurs, regulators, and financial experts to explore strategies to improve MSME access to capital market funding while boosting private sector growth.

Participants emphasised 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.

Speaking, 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.

“Sadly, Nigeria is not industrialising. Manufacturers, agro-processors, and MSMEs are borrowing, when they can, at rates that crush margins before a single product leaves the factory floor. This is not a financing environment that builds industries. It tests survival.

“Yet here is the critical insight we must not lose sight of: the capital exists. Nigeria’s Pension Fund Administrators (PFAs) closed 2025 with assets approaching N20 trillion, as they actively expanded participation in both equities and fixed-income markets. The Nigerian Stock Exchange (NSE) posted a 48.12 per cent gain in 2025, consolidating its bullish run, while foreign reserves stood at $45.4 billion as of December 2025. The NGX market capitalisation for equities is forecast to hit N170 trillion in 2026. The pipes exist. What has been missing is a deliberate, structured mechanism to channel that capital purposefully into the productive economy. That is why the LCCI and NASD are coming together to help MSMEs look beyond the usual avenues and explore alternative funding avenues,” he said.

Speaking, Managing Director, 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, 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.

Director-General, 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.

Representing the DG 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.

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 don’t have proper documents, have not filed audited yearly returns with the CAC, have poor financial documentation and incomplete or unaudited financial statements.

They further noted that many businesses never see the need to get auditors, lack compliance structures, internal control and no policies; all of which affect their ability to access proper funding.

“You want to position your company for investment purposes, but lack a proper compliant structure; this is not possible. No investor would be willing to pump capital into companies like this.”

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.