Legal Framework For Crowdfunding In Nigeria

In January 2021, the Securities Exchange Commission governed by the Investment and Securities Act, 2007 (as amended) released the "Crowdfunding Rules" or the "Rules" for the regulation of unregulated crowdfunding activities in Nigeria. The Crowdfunding Rules, 2021 detail the regulatory framework by which companies can raise debt or equity capital through crowdfunding, as well as the eligibility criteria and obligations of issuers, crowdfunding portals, and crowdfunding intermediaries. The Rules are applicable to investment-related crowdfunding ventures and seek to regulate activities of key market participants within the crowdfunding space (which include intermediaries, fundraisers and investors) by specifying rights, duties and responsibilities that govern their respective conducts.