Sourcing Microentreprises Credit through the Capital Market for Economic Development in Nigeria

Abstract

The paper examines Microentreprises need of working capital, long-term financing for equipment and other investments, savings and payment services in order to create jobs and take advantage of new economic opportunities. To grow and prosper microenterprises of all sizes there is a need to have access to financial services. Such access is a particular challenge for microenterprises in Nigeria that need credit that will sustain and expand the business. The paper therefore argues that the best solution is to source for credit through the stock market. This can take place when these microenterprises take advantage of the second tier securities market where the conditions for listing and sourcing capital are much easier.