Nigeria’s Securities and Exchange Commission (SEC) has stated that it allows crowdfunding platforms to crowdfund for individuals and organizations. SEC also implied that the capital market has the potentials to bridge the infrastructure gap in the country.
This is according to the SEC’s Executive Commissioner of Operations, Dayo Obisan at the annual conference with the theme: ‘Financing Infrastructure & SMEs for inclusive growth in post-Covid-19 economy,’ held in Lagos last weekend.
What SEC is saying
According to the Commissioner, “There are a number of options that can be explored to bridge the infrastructure gap. One of them that has been used in the past is Sukuk. In the last three to four years, Sukuk has been used to raise funding for critical projects in various sectors of the economy.
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“We also have collective investment schemes; these are individual monies maybe by some institutions, and over N100 billion has been done. We have about three surviving infrastructure-focused funds in Nigeria totalling almost N100 billion and there are some that are registered programmes. One of them has a programme of N200 billion and they have only launched N76 billion so there is still a lot of room for growth.
“We have allowed for crowdfunding platforms, that means people that do not even know each other can come together and fund a business, these are the kind of things we have available, not only for the government but also for individuals.
The Commissioner noted that trust deficiency is a problem in the country and the market but stated that the SEC is serious about investor protection, transparency and fairness in the capital market. He also voiced the need for policy synergy and predictability of outcomes, which he said would engender confidence in the market.
How does one confirm the authenticaticity of fintech and crowd funding companies existing both within and without your database?