Crowdfunding platforms in Nigeria have been directed by the Securities and Exchange Commission (SEC) to register with the commission not later than 90 days.
The commission announced this in a statement, noting that all extant crowdfunding platforms “prior to the commencement of the rules” were expected to comply with the directive issued.
According to the commission, the rules governing the business of crowdfunding in the country took effect on 21 January 2021, in a bid to “ensure investor protection”.
The commission said, “This is to inform all stakeholders that as part of efforts to ensure investor protection while encouraging innovation in the conduct of securities business, the rules governing Crowdfunding business in Nigeria came into effect on the 21st day of January, 2021.
“In line with the transitional provisions of the Rules, all persons/entities operating an investment crowdfunding portal/digital commodities investment platform prior to the commencement of the rules were expected to restructure all operations in accordance with the requirements of the rules and apply for registration not later than 90 days from the Effective Date.
“While the transitional period elapsed on the 21st day of April, 2021, the Commission hereby directs all existing investment crowdfunding portals/digital commodities investment platforms to note the requirements and eligibility criteria for raising funds through and/or operating a Crowdfunding Portal and comply with the registration requirements or cease operations by the 30th of June, 2021, failing which the operations of such platform would be categorized as illegal and attract regulatory sanction as stipulated in the Rules.”