NIGERIA: SEC Set To Regulate Crowdfunding

NIGERIA: SEC Set To Regulate Crowdfunding
Nigerian Stock Exchange (NSE) Floor

The acting director-general of the Security Exchange Commission (SEC), Mrs Mary Uduk, whilst speaking at an interview, said moves were being made to protect investors in the capital market by introducing regulations to help small businesses raise capital with crowdfunding.

In the statement, the acting DG, Mrs Uduk said,

“investors confidence is central to our job ad the regulator of the capital market. People must have the confidence to invest.
With crowdfunding, private companies can raise long term funds using regulated platforms. The platforms of the crowdfunding will be regulated by the SEC”,

The acting DG, Mrs Uduk mentioned that the listing of MTN Nigeria and Airtel on the Nigerian stock exchange (NSE) gave this capital market a significant boost.

She highlighted that the listing of the telecom companies (initial public offering and dual listing) were new trends in the primary market. She further stated that the dual listing of Airtel signified the interest of foreign issuers into the Nigerian capital market and consequently some offshore companies are in discussion with the commission for an IPO that will be dually listed in Nigeria and the united kingdom.

She pointed out that a look into the equities market, especially the NSE will reveal a loss of about 16% so far this year on the back of relatively weak economic fundamentals and investors’ sentiments.

Mrs Uduk expressed hope to see some improvement in the equities segment ad investors saw opportunities to pick low priced stocks whilst adding that there are still opportunities and high probabilities for the rise of the market before the year ends.

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