The Crowdfunding market in Nigeria has been experiencing significant growth in recent years.
Customer preferences: Nigerian consumers are increasingly turning to crowdfunding as a way to support innovative projects and entrepreneurs. The rise of social media and the internet has made it easier for individuals to discover and participate in crowdfunding campaigns. This has led to a shift in consumer behavior, with more people choosing to support projects they believe in rather than relying solely on traditional forms of investment.
Trends in the market: One of the major trends in the Nigerian crowdfunding market is the emergence of platforms that cater to specific industries or causes. For example, there are platforms focused on supporting startups, creative projects, and social causes. This specialization allows individuals to find campaigns that align with their interests and values, increasing the likelihood of their participation. Another trend in the market is the growing popularity of reward-based crowdfunding. This type of crowdfunding allows individuals to contribute to a project in exchange for a reward, such as early access to a product or a personalized experience. This model has gained traction in Nigeria as it provides tangible benefits to backers, making it a more attractive option for potential supporters.
Local special circumstances: Nigeria has a vibrant entrepreneurial ecosystem, with a large number of startups and small businesses looking for funding. However, access to traditional funding sources, such as bank loans, can be challenging for these businesses. Crowdfunding provides an alternative avenue for entrepreneurs to raise capital and bring their ideas to life. Additionally, Nigeria has a large diaspora population that is eager to support projects and initiatives in their home country. Crowdfunding platforms have tapped into this market by providing a platform for Nigerians living abroad to contribute to campaigns in Nigeria. This has helped to bridge the funding gap for many projects and has created a sense of community among Nigerians both at home and abroad.
Underlying macroeconomic factors: The growth of the Nigerian crowdfunding market can be attributed to several underlying macroeconomic factors. Firstly, the country has a large and growing population, which provides a pool of potential backers for crowdfunding campaigns. Additionally, Nigeria has a high smartphone penetration rate, which enables individuals to easily access crowdfunding platforms and participate in campaigns. Furthermore, the Nigerian government has taken steps to support the growth of the crowdfunding industry. In 2015, the Securities and Exchange Commission (SEC) released regulations for crowdfunding in Nigeria, providing a legal framework for platforms and investors. This has helped to build trust in the industry and attract more participants. In conclusion, the Crowdfunding market in Nigeria is experiencing significant growth due to changing consumer preferences, the emergence of specialized platforms, and the unique circumstances of the Nigerian market. The underlying macroeconomic factors, such as population size and smartphone penetration, have also contributed to the growth of the industry. With continued support from the government and an increasing number of entrepreneurs and investors embracing crowdfunding, the market is expected to continue its upward trajectory.
Data coverage:
The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.
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