SEC Grants Licenses to Crowfunding Platforms

May 29, 2024
crowdfunding platforms

By Adedapo Adesanya

The Securities and Exchange Commission (SEC) has disclosed that it has registered three crowdfunding platforms, with three additional applications currently under review, as part of efforts to facilitate capital needs for businesses in Nigeria.

The Director-General of SEC, Mr  Emomotimi Agama, confirmed this at a stakeholders dialogue on crowdfunding as a tool for strengthening Micro, Small and Medium Enterprises (MSME) finance and investment in Nigeria organised in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in Lagos.

Mr Agama, represented by the Director/Head of Department for Registration Exchanges Market Infrastructure and Innovation Department of SEC, Mr Abdulkadir Abbas, stated that the registered platforms had already begun to make significant contributions to the MSME financing landscape by facilitating the raising of funds for various projects.

According to him, MSME operators have so far been able to source close to one billion naira through the crowdfunding framework within a short timeline.

He noted that this underscores the commitment of the commission to fostering innovation and providing alternative financing options for MSMEs while ensuring regulatory compliance.

“The value being contributed to national economic growth by MSMEs is phenomenal and cannot be discounted. Hence the premium placed on them by the Federal Government, SEC and indeed all stakeholders. MSMEs serve as the backbone of the economy with huge contributions to our GDP. They foster innovation and create vast employment opportunities and livelihoods for the largest mass of citizens,” he said.

According to him, notwithstanding the contributions of the sector, MSMEs oftentimes, grapple with the challenge, among others, of accessing the finance required for growth and business expansion.

Mr Agama said that SEC had, in recognition of the transformative potential of crowdfunding as a source of financing for MSMEs, continued to take decisive steps in overseeing and promoting the orderly growth of its ecosystem in Nigeria.

He mentioned that the commission had developed and continued to review, comprehensive rules and regulations that provide a robust framework for the operation of crowdfunding platforms.

The director general said this is with a strong emphasis on ensuring transparency, investor protection, and market integrity.

He assured that SEC would commit to fostering a collaborative environment that will drive positive changes and innovation in the MSME financing landscape, going forward.

“I am convinced that the outcomes of this dialogue will be instrumental in shaping our regulatory approaches going forward, guiding policymakers, empowering investors, and supporting MSMEs in leveraging crowdfunding as a viable financing option,” he said.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Leave a Reply

Abdul Ningi
Previous Story

Budget Padding: Senate Recalls Abdul Ningi

Moruf Oseni Wema Bank Shares
Next Story

Wema Targets N200bn Fresh Capital, Seeks Tier-1 Status

Latest from Economy

Don't Miss