Bitcoin
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Nigeria’s cryptocurrency transactions have hit $50 billion in one year, according to the Securities and Exchange Commission (SEC). This figure was revealed by SEC Director-General Emomotimi Agama, who noted that the transactions, which took place between July 2023 and June 2024, showcase the growing sophistication and risk appetite of Nigerian investors. Agama made this disclosure at the weekend at the Public Funds Management Corporation of Nigeria’s Stakeholders’ Summit in Abuja.
The SEC DG highlighted a significant disparity between the cryptocurrency market and traditional capital market participation. While over $50 billion was traded in cryptocurrencies, fewer than 4% of Nigeria’s adult population are active investors in the traditional capital market. This low participation rate is a major impediment to economic growth and capital formation. Agama emphasized that the country’s infrastructure financing gap remains a significant challenge, with an annual deficit of $150 billion.
In contrast, the public-private partnership (PPP) bonds raised only N1.5 trillion, which is far below the infrastructure deficit. The SEC DG also pointed out that Nigerians spend an estimated $5.5 million every day on gambling, with over 60 million Nigerians engaging in daily gambling activities. Agama called for a “reimagined SEC” that serves as both regulator and enabler of private-sector-driven growth, focusing on trust-building, transparency, and inclusion.
The SEC DG also highlighted key challenges, including low retail participation, market concentration, falling foreign inflows, underutilized pension assets, and a widening infrastructure financing gap. He emphasized the need for the SEC to adapt to the rapidly evolving financial landscape and to develop innovative solutions to address these challenges. The SEC’s efforts to regulate the cryptocurrency market and protect investors are crucial in promoting trust and confidence in the financial system.
