The Securities and Exchange Commission (SEC) says crowdfunding can accelerate Nigeria’s financial inclusion agenda and boost access to funding for small businesses.
SEC Executive Commissioner, Operations, Dayo Obisan, in a statement on Sunday, in Abuja, said crowdfunding could also increase the quantum of investible funds by unlocking the untapped capital in the economy.
Obisan, was said to have said this during a webinar themed: “Accelerating Financial Inclusion Through Crowdfunding.”
He noted that crowdfunding platforms are websites that enable interaction between fundraisers and the crowd, and have garnered a lot of attention from regulators across jurisdictions because of its potential to boost financial inclusion efforts.
This is to raise awareness for Nigerians on crowdfunding as a funding mechanism for start-ups and MSMES, to enlighten them on experiences and lessons on crowdfunding from other jurisdictions.
He said the event hosted by the SEC, is first in a series, since the Commission’s Rules governing Crowdfunding became effective in January, 2021, with the main objective of “Investor safety”, and aimed at providing a platform for knowledge and experience sharing among participants.
Obisan described crowdfunding as a new phenomenon growing in popularity in the country.
He said: “This is to raise awareness for Nigerians on crowdfunding as a funding mechanism for start-ups and MSMES, to enlighten them on experiences and lessons on crowdfunding from other jurisdictions.
“This is to also let the people know that it is an alternative way of investment and financing of businesses.
“It is strongly believed that the capital market has a leading role to play in this regard by collaborating with relevant stakeholders to map out strategies for deepening the market through financial inclusion as well as continuous enlightenment programs with focus on Collective Investment Schemes.”
The President, African Crowdfunding Association, Mrs Elizabeth Howard, defined crowdfunding as the use of small amounts of money, obtained from a large number of individuals or organisations to fund a project or personal loan and other needs through web-based platforms.
