By Nkiruka Nnorom
FOLLOWING the dearth of cheap capital in the Micro, Small and Medium Enterprises, MSMEs, in the country, the NASD OTC Securities Exchange Plc, has announced plans to create a window, Enterprise Platform, that will enable MSMEs access funds to power their businesses.
Enterprise Platform, which will be launched before the end of third quarter of the year, Q3’17, will give MSMEs operators the opportunity to enjoy funding support from venture capital firms upon confirmation of viability of such business.
In his presentation at the Nigerian Association of Small and medium Enterprises, NASME Lagos Branch Round Table Conference, themed “Reflating the Economy through MSME Support”, in Lagos, Mr Bola Ajomale, Managing Director/CEO, NASD Plc, said the platform would provide alternative to bank loans that are marked with disturbingly high interest rates.
According to him, advisers would be appointed to each of the interested companies, who would package the companies and make them more attractive for investment.
He said: “NASD believes that in addition to creating a market for secondary trading of securities, it is very important to support the small businesses we have in the country. So, what we are doing is that we are creating a platform for them to showcase themselves and attract the kind of capital they require that will assist them in their businesses.
“Right now, most of the options they have are for them to borrow from banks. Bank rates do not support their businesses; it can make it difficult for their businesses to grow. So, what we are doing right now is that we are creating a situation where the companies can showcase themselves and venture capitals can take a look at them. It is like a supermarket of companies and accredited investors can look at them and decide which company they want to get into.
“We are at the stage we are inviting sponsor and incubator companies and also some investor companies to take a look at the portal and give us their final requirements and specifications and after that, we can open it up to companies.”