Prospects and Challenges of Crowdfunding as an Alternative Funding Option in Nigeria

Abdulmajeed M.R. Aderemi (Faculty of Business and Management, Universiti Sultan Zainal Abidin)
Sri Maulida (Faculty of Economic and Business, Universitas Lambung Mangkurat)
Abdullateef Abdulqadir Maikabara (Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia)

Muqtasid: Jurnal Ekonomi dan Perbankan Syariah
Vol 12, No 1 (2021): MUQTASID: Jurnal Ekonomi dan Perbankan Syariah

This study aims to review the concept, prospects, and challenges of crowdfunding in Nigeria. Furthermore, it adopts a library-based concept in which secondary sources are relied on data collection using descriptive and deductive approaches of analysis. The results showed that Nigeria has the potential of becoming the hub center of crowdfunding in Africa. However, various challenges are facing the growth of this platform as a means of financing. These include the issues of regulation, lack of adequate awareness, as well as fraud and corruption. Furthermore, this study recommends the need for adequate awareness about crowdfunding and the regulation to ensure its functionality. It also offers additional literature as a means of financing, especially from the Nigerian context.