Nigeria’s Crypto Transactions Hit $50 Billion As SEC Flags Weak Capital Market Participation

Nigeria recorded over $50 billion in cryptocurrency transactions.

Less than 4% of adults invest in the regulated capital market.

The SEC plans reforms to integrate digital assets through stronger regulation.

Over $50 billion worth of cryptocurrency transactions flowed through Nigeria between July 2023 and June 2024, according to the Securities and Exchange Commission (SEC). The SEC Director-General, Dr. Emomotimi Agama, disclosed this during the Chartered Institute of Stockbrokers’ annual conference in Lagos. He said the scale of crypto activity shows how quickly digital assets have become a major part of Nigeria’s financial landscape.

Rising Crypto Use Reflects Investor Shift

According to the local reports, Agama noted that digital finance has expanded faster than the country’s traditional capital market. Despite strong investor activity in crypto, fewer than four percent of Nigerian adults participate in the regulated securities market. He said this figure represents less than three million investors, even as over 60 million Nigerians engage in gambling daily, spending an estimated $5.5 million each day

He described this as a major concern for national capital formation and long-term economic stability. The SEC chief said the volume of crypto transactions demonstrates a growing appetite for alternative assets. However, he added that this trend exposes a gap in the country’s investment structure, where many citizens prefer unregulated or informal markets

Nigeria’s market capitalization-to-GDP ratio remains around 30 percent, well below South Africa’s 320 percent, Malaysia’s 123 percent, and India’s 92 percent. He said these figures underline the need to link digital innovation with the broader financial system.

Capital Market Plan Faces Execution Gaps

Reviewing the Capital Market Masterplan (CMMP) introduced in 2015, Agama said fewer than half of its 108 initiatives have been executed. The plan aimed to strengthen Nigeria’s capital market and attract long-term funds for development

He said poor alignment with national goals, weak monitoring, and limited collaboration slowed progress during the ten-year period. Agama explained that SEC has to evolve due to the development of the digital economy. He pointed out the necessity to incorporate crypto assets into the financial system of Nigeria by means of adequate regulation and education of investors

He also opined that reforms must concentrate on transparency, inclusiveness and results to develop confidence in people. In his view, the key to sustainable capital formation will be breaking the digital finance-traditional investment system gap.