Wednesday, September 21 2022

Despite the national financial inclusion strategy adopted by the federal government in 2011 to financially include 80% of its adult population by 2020, few results have been achieved.

Around 38 million adults remained completely financially excluded at the end of 2020.

Although the Central Bank of Nigeria (CBN), Nigeria has revealed that the country has gained 64% financial inclusion by 2022, while the federal government is now aiming for 95% by 2024.

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Recently, the Executive Commissioner for Operations, SEC, Mr. Dayo Obisan, said that operationalizing crowdfunding in the country will accelerate the financial inclusion agenda in Nigeria, while increasing the amount of investable funds by unlocking untapped capital. in the economy.

Mr. Obisan revealed this during a webinar on “Accelerating Financial Inclusion through Crowdfunding”.

He described crowdfunding as a new and increasingly popular phenomenon in Nigeria, adding that the platform is an innovative source of funding that provides opportunities for MSMEs and start-ups to raise capital from the crowd ( populace) by harnessing the power of the internet.

Crowdfunding is a way businesses raise capital, by pooling small amounts of money from large numbers of people, instead of meeting with investors to raise funds. It also allows for effective interaction between fundraisers and the crowd.

The Nigerian system has attracted a lot of attention from regulators in all jurisdictions because of its potential to advance financial inclusion efforts.

Mr. Dayo Obisan, speaking at the event, said that crowdfunding is a very effective way of financing SMEs, making it an ideal alternative for investing and financing businesses in the country. He therefore insisted that participants be made aware of the system.

In his words;

“It is also about educating participants, and indeed Nigerians, about crowdfunding as a funding mechanism for start-ups and MSMEs, enlightening them on the experiences and lessons on crowdfunding of others jurisdictions as an alternative means of investing and financing businesses. “,

According to him, “By realizing the potential of crowdfunding, the Commission’s rules issued in January 2021 took concrete steps to improve the regulatory framework for crowdfunding by introducing an operational framework between fundraisers and the investing public in Nigeria. .

The framework, among other things, makes it mandatory for all investment-based crowdfunding to be operated only by crowdfunding intermediaries through the issuance of investment instruments. This will undoubtedly provide an additional opportunity for MSMEs, start-ups and the general public for faster fundraising options.

“He strongly believes that the capital market has a leading role to play in this regard by working with relevant stakeholders to develop strategies for deepening the capital market through financial inclusion as well as development programs. ‘continuous information focused on collective investment schemes’.

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