Utilising Crowdfunding for Infrastructural Development in Nigeria

Abstract

Financial theory conceives that underinvestment in economic and social externalities is purely incentivised by risk and return motives. Recent development in information technologies, involving fintech platforms, communication media, blockchain, cryptocurrencies, have enabled technology-based community to provide capital support for fundraisers’ projects through crowdfunding. As an alternative finance option, crowdfunding supports engagement in collective behaviors. The nature, processes and consequences of crowdfunding for project development is attracting increased interest. This paper examines the concept, theory and review recent developments on crowdfunding, and demonstrates its implications for infrastructural development. The evidence concentrates on sound inquiries by addressing and analysis promising questions involving crowdfunding how crowdfunding can facilitate and be considered as a channel for funding infrastructural developments in Nigeria. The paper engaged and surveyed key thought individuals, including researchers, private enterprises and government agencies, linked to the entrepreneurship field, regarding required inquiry believe to associate the crowdfunding projects. We asked these individuals to identify valuable information on crowdfunding including the nature, sectoral difference, regulatory constraints of crowdfunding as well as its importance for project development. We unveil issues on the distinctiveness and challenges anticipated for crowdfunding for private and public projects. We received a full response from 85 (43%) of the 200 questionnaires administered, and a 43% partial response. The responses offer critical implications for infrastructural developments and can inform future research on crowdfunding. The review informs practitioners, investors, and entrepreneurs leading crowdfunding campaigns, and stakeholders that aid them – policy makers, regulators, and consultants.