The Development Bank of Nigeria (DBN) has announced her partnership with the Nigerian Stock Exchange, the two organizations would be exploring ways to build the capacity of Micro Small and Medium Enterprises (MSMEs) and support them in enlisting on the floor of the Exchange.
Speaking during the closing gong ceremony at the Exchange on Friday, Chief Executive Officer, DBN, Tony Okpanachi, explained that the proposed collaboration with the NSE will involve sourcing or prospecting for MSME companies.
Okpanachi added that the collaboration is line with the NSE’s objective of assisting MSMEs to become listed companies in the stock market. He added that the bank is working with them to build their capacity as well as collaborate with them to make an impact in that segment.
According to him, “We would explore ways of working effectively with the Nigerian Stock Exchange (NSE) on how we can make impact in the Micro Small and Medium Enterprises in terms of capital raising and equity. The Development Bank of Nigeria is a wholesale institution but a lot of MSMEs require equity to function and grow optimally. Equally, this partnership is in line with the NSE’s objective of trying to bring MSMEs to the stock market.”, He said.
There are lots of interest in the MSMEs segment of the economy but many entrepreneurs see cost and the disclosure of their financial record as an infringement of their ownership. The NSE has come up with a lot of initiatives to ameliorate these challenges and this should encourage MSMEs. For example, the Exchange has reduced the number of required shareholders before a MSME can come on the Exchange platform and they have also streamlined the cost of listing in order to make it affordable for MSMEs to get listed. The idea is for them to raise capital in a structured way.
Okpanachi further revealed that DBN has plans of getting listedon the Exchange in the long term so as to raise capital beyond its current funding.
He said, “Ultimately, our long-term plan is to be able to listed on the NSE. This is not immediate on the horizon but in the long term, there will an opportunity for us to raise capital beyond the current funding we have at the moment”
On his part, Head, Listing Business at the NSE, Olumide Bolumole, said, “This partnership is all about both parties leveraging each other’s expertise to better the financial ecosystem. We are happy to be collaborating with the DBN as we believe that we share the same synergies especially in the area of our CSR”.