In April 2020, the Securities and Exchange Commission (SEC) released draft regulations for crowdfunding activity in Nigeria. It was one of the few sectors where people were actually asking for regulation.
While there are a lot of positives to companies raising funds from the public in exchange for equity, some bad actors have seized the absence of regulation to fleece investors. Because there were no rules, investors had no recourse whenever this happened.
So the 2020 draft regulations were a relief. Yet that draft was silent on "agritech" companies. The new regulations call agritech companies, commodities investment companies.
What’s big about the new regulations: Crowdfunding intermediaries will now need a paid-up capital of ₦100 million before they can be registered. There are interesting implications to this.
I spoke to people at PiggyVest and PettySave to make sense of whether the new regulations would bring big changes to their business.
The result is this article: read it here.