By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange has reiterated the need for alternative funding for micro, small, and medium sized enterprises (MSMEs) in the country.
According to NASD in a statement, globally, MSMEs are under pressure of acquiring capital due to the COVID-19, causing a huge shock to financing.
In view of this reality, countries like the United States of America (USA) is taking steps to secure an additional $250 billion to complement $350 billion already budgeted as relief funds for MSMEs.
However in Nigeria, the country is seeking approximately $7 billion from the financers such as the International Monetary Fund (IMF), World Bank, and The African Development Bank (AfDB) to support the economy, according to the Minister of Finance, Mrs Zainab Ahmed.
As financing has become very difficult in light of the recent economic uncertainty, MSMEs are finding it a lot harder to keep their businesses afloat compared to larger sized companies.
According to the NASD, “In the event of a successful fund raise from the above listed multilateral agencies, it is evident that $7 billion would be insufficient to cater adequately to the needs of Nigeria and its MSMEs, thereby creating the need for alternative funding solutions for MSMEs.”
Offering its platform, the NASD Enterprise Portal (NASDeP), which wwa launched in 2018 to cater to high growth private enterprises, will help create and augment the efforts of the government to provide the needed funding for MSMEs in the country.
“At NASD, we remain committed to facilitating growth within the Nigerian economy by addressing the funding deficit within the MSME sector. We believe that NASDeP would be ultimately beneficial to MSME’s especially during this period and beyond.
“Micro, small and medium sized enterprises are the majors drivers of economies globally, and as such should command a significant amount of attention and resources from governments globally.
“Developed countries across the world have realized the importance of MSMEs within the economy and have actively taken steps to ameliorate the impact of shocks such as a global pandemic on these essential growth drivers,” the platform for trading unlisted stocks in Nigeria noted.
NASDeP is an information repository which provides a platform for high growth MSMEs to access capital from private equity investors seeking investment opportunities.
Transactions on NASDeP are seamless with an array of accredited due diligence professionals registered on the platform to handhold enterprises through the process.
