Nigeria‘s Securities and Exchange Commission (SEC) don announce plans to make crowdfunding regulations easier for small and medium-sized enterprises (SMEs) to access funds. According to Dr Emomotimi Agama, the Director General of SEC, crowdfunding dey help small businesses and start-ups raise investment capital through online platforms.
The current regulations wey SEC introduce in 2021, allow companies wey don operate for at least two years to raise funds through crowdfunding portals registered by the commission. However, the limits on the amount wey can be raised dey seen as a constraint. For example, medium enterprises no fit raise more than N100 million, small enterprises no fit raise more than N70 million, and micro-enterprises no fit raise more than N50 million within 12 months.
Agama say dem dey look to relax these rules to make it easier for firms to access cheaper financing, especially with the high interest rate environment wey we dey now. The benchmark interest rate currently dey at 27.25 per cent. He hint say new draft rules might be released as early as the first quarter of 2025.
This move go help SMEs wey no fit take advantage of the current rules because dem too restrictive. The SEC dey work to reduce the regulatory burdens on small businesses and their investors to improve capital allocation efficiency.
