HOW SMES CAN UNLOCK LONG-TERM FUNDS — NASD MD

The Managing Director of the Nigerian Association of Securities Dealers (NASD), Mr. Bolaji Aluko, has advised small and medium enterprises (SMEs) to leverage alternative financing platforms and strong corporate governance practices to unlock long-term funds for sustainable growth.

Speaking at a business forum in Lagos on Friday, Aluko emphasised the importance of transparency, proper record-keeping, and credible financial reporting as key requirements for accessing long-term capital from the NASD Over-The-Counter (OTC) market and other investment windows.

“SMEs must understand that long-term funds come with higher expectations. Investors want to see clear business models, strong management teams, and measurable growth potential. Corporate governance is no longer optional; it is a necessity,” Aluko stated.

He highlighted the NASD OTC market as a viable platform for SMEs seeking equity and debt financing without the stringent requirements of the main exchange. The platform offers more flexible listing rules and opportunities for smaller companies to raise capital from a wide pool of investors.

Aluko also encouraged SMEs to explore partnerships with venture capital firms, development finance institutions, and angel investors who are increasingly showing interest in the Nigerian SME space. He noted that digital financial solutions and fintech platforms are further easing access to funding for small businesses.

Participants at the forum, including SME operators and financial advisors, commended NASD for its role in deepening the capital market and providing alternative funding options. Many called for more sensitisation programmes to educate business owners on the benefits of formal capital raising.

The NASD MD assured that the association will continue to work with regulators and market participants to create a more inclusive and efficient ecosystem for SME financing. He urged business owners to focus on building scalable and sustainable enterprises that can attract long-term investors.

As Nigeria seeks to diversify its economy and reduce reliance on oil, experts believe unlocking long-term funds for SMEs will be critical to job creation, innovation, and overall economic growth.