Last updated on July 15th, 2020 at 11:46 am
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In a bid to ease the process required by Small Scale Enterprises (SMEs) and Startups to access long term funds long, the Nigeria Stock Exchange, NSE on wednesday created a platform dubbed Growth Board.
The Chief Executive Officer of NSE, Mr. Oscar Onyema disclosed this while launching the NSE Growth Board a part of NSE, allowing the SMEs to list on the Exchange without strict requirements.
Commenting on the launch, he said;
“This platform is pivotal to our efforts in catering to a segment of the economy that hitherto has been neglected and perceived as a high risk and low reward venture by most service providers especially in relation to access to capital from financial institutions.
The traditional role of the Exchange as an enabler of capital flow from areas of surplus to deficit holds good promise for its capability to support SMEs, as access to capital is the prime challenge faced by companies that are active in the SME sector.”
Continuing he said;
“In line with the Exchange’s focus and drive to deepen the Nigerian capital market and its support for Start Ups and Small and Medium Enterprises, I am pleased to unveil to you today the Nigerian Stock Exchange – Growth Board.”
There comes the need for a blockchain powered IPO that will ease the access to venture capital for startups looking to raise funds for its platform. Most Fintech startups in Nigeria is still finding it hard to raise capital for its business.
According to the Nigeria Bureau of Statistics, SMEs in Nigeria have contributed about 48 percent of the national GDP in the last five years.
The Growth Board will help companies with high growth potential to raise long term capital and also promote liquidity in trading of it’s shares. NSE will offer its varied services and product to these Startups and SMEs to encourage it’s growth.
