Crowdfunding is a unique way of using the power of the people to raise money for different projects. Users usually establish a primary goal, come up with a project and spread the word through various platforms like the Social media.
The Objective of successful crowdfunded projects are always clear while most plans are for helping the community or raising funds for start-up businesses innovations.
According to Suzanne Wisse-Huiskes; a Dutch Crowdfunding expert, “Crowdfunding could play a significant role in aiding the development of organizations and individuals in a country with the most considerable economy and millions of young innovative entrepreneurs.” This clearly shows the importance and role that crowdfunding is playing the social and economic development of nation.
In a recent report published by CrowdfundingHub dubbed “Crowdfunding Potential for Nigeria 2017”, the country has various practical elements that will foster the Crowdfunding industry in Nigeria. These elements include; a rapidly growing population currently at 195 million, extensive use of mobile and internet connection, an extensive network of friends and family and quick, efficient payment solutions. There is enormous potential for Crowdfunding in Nigeria if only explore its power.
Nigeria’s Crowdfunding statistics
Out of a total of $83.3 million contributed from the African Crowdfunding market, Nigeria accounted approximately $7-$8 million. The primary contributing sources came from equity Crowdfunding and peer-peer business lending platforms representing 90% of the money raised within Nigeria. The other 10% came from donation-based, microfinance and reward-based Crowdfunding.
What will facilitate the skyrocketing of Crowdfunding in Nigeria?
The following factors will significantly affect the widespread of Crowdfunding in Nigeria;
Technology – Technology and education are essential. It leads to easy internet access and effective communication and advanced services to enhance transactions. An increase in the number of internet users and social media accessibility will play a critical role in the increase in crowdfunding projects.
Entrepreneurship – Nigeria’s economy is made up of small business owners who will ultimately need capital to either start other businesses or grow the existing ones. It is considering the government and banks are not ready to help these entrepreneurs in the provision of loans.
Regulation – It is very significant. It can either increase or decrease the growth of both entrepreneurship and Crowdfunding depending on its structure and scope. Nigeria is ranked number 169 among those countries that are hard to operate a business.
The specific project collects donations from crowd mostly meant for non- businesses issues like community-based projects or philanthropy. By exploring this, the needy-donor gap can be bridged and a lot of problems can be solved.
Apart from monetary contribution, it allows donors to be part of the community and change the lives of other people. By using crowdfunding, communities have come together to provide facilities
The leading donation-based Crowdfunding platform in Nigeria is donate-ng. Founded in 2015; the Crowdfunding platform seeks to change the lives of people through collective giving. Their goal is to ensure that no project should go unfunded. Through their platform, many people been able to receive donations for a wide range of challenges they are facing. The Sick have received treatment, student’s school fees have been paid, schools have been built/refurbished and communities have put in place infrastructure that was hitherto lacking.