The Securities and Exchange Commission (SEC) has expressed its readiness to support Small and Medium Enterprises (SMEs), to offer shares to investors through online platforms, allowing backers to receive equity and participate in the companies’ growth and profits.
The Director General of SEC, Emomotimi Agama, who stated this in a goodwill message at the 2024 National MSME conference, said the theme, ‘GROW Nigerian: Sustaining a Digital and Innovation-Driven Economy’, captured the essence of a crucial conversation that is not only timely but also transformative for the future of the economy.
Represented by the Executive Commissioner, Corporate Services at the commission, Samiya Hassan Usman, Agama said the SEC’s 2021 guidelines for crowdfunding outlines registration, operation and reporting requirements for equity crowdfunding platforms.
These platforms, he said, must be registered with the SEC and comply with regulatory standards, including proper record-keeping.
“Additionally, the SEC has established investment limits to protect retail investors, which may vary based on their net worth or income.
“As the apex regulator of the capital market, the Securities and Exchange Commission is committed to fostering a conducive environment for MSMEs to access capital, scale their businesses, and leverage financial technology for growth.”
