Peer-to-Peer (P2P) funding platforms have emerged as innovative financial solutions that facilitate direct borrowing and investment without relying on traditional banks. Hence, this study explores the benefits, challenges, and adoption of P2P funding platforms in Abuja, Nigeria. A survey research design was employed, collecting data from 120 respondents using structured questionnaires and analyzed using weighted mean scores, standard deviations, rankings, and Spearman’s rank correlation. The findings indicated that respondents perceive numerous benefits of P2P funding platforms, including easier access to capital, support for innovative and niche projects, flexible repayment plans, streamlined application processes, faster approval and funding, reduced dependence on banks, transparency and security, flexible loan terms, opportunities for smaller investors, higher potential returns for investors, and low investing requirements. The research further revealed that the awareness of the various P2P platforms strongly influences their usage as evidenced by a very strong positive correlation across all platform types (Spearman ρ ≈ 0.99, p < 0.01). Conversely, significant challenges were identified, including market competition, regulatory and legal uncertainty, credit risks, technological limitations, and operational risks. The study concluded that with targeted interventions, P2P platforms can enhance financial inclusion, investment opportunities, and entrepreneurial growth in Abuja. Thus, the study recommended strengthening regulatory frameworks, enhancing risk management, promoting user education, investing in technological development, diversifying investment opportunities, and fostering strategic partnerships with traditional financial institutions to improve adoption and sustainability.
AJANI et al. (Fri,) studied this question.