Nigerian regulator amends crowdfunding regulations, resolves only few pain points

The Securities and Exchange Commission (SEC) has adjusted its proposed crowdfunding regulations, in response to the input of relevant stakeholders in the sector. Despite supposed input from relevant stakeholders, major talking points remain the same.
Recall that on March 30, the SEC released draft regulatory guidelines for Nigeria’s growing crowdfunding industry. Prior to those regulations, raising money through such means was the exclusive preserve of public companies listed on the Nigerian Stock Market.
However, a number of these platforms found a loophole by incorporating outside Nigeria while serving the Nigerian market.
SEC’s landmark regulatory draft brought in a reality check as it applied to both local and foreign companies.
In that document, the SEC stated that crowdfunding portals will now require a paid-up capital of ₦100 million ($256,000), amongst other registration requirements.

Also, the maximum amount which could be raised through a crowdfunding portal was not to exceed ₦100 million ($256,000) by a medium enterprise, ₦70 million…

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