Nigerian SEC to Ease Crowdfunding Regulations For Small Firms
- New rules may be released as early as first quarter of 2025
- Many small firms can’t afford to raise commerical loans
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Nigeria’s Securities and Exchange Commission plans to ease regulations on crowdfunding to enable smaller firms to raise cheaper financing amid rising interest rates.
Small and medium-sized companies haven’t been able to take advantage of rules that were introduced in 2021 to allow debt and capital to be raised online through crowdfunding because they are overly restrictive, SEC Director-General Emomotimi Agama said in an interview in Lagos, the nation’s commercial hub. Limits on the amount that can be raised were also seen as a constraint, he said.