SEC worried as Nigeria records over $50bn cryptocurrency transactions in 1 year

By Ginika Okoye

The Director-General of Securities and Exchange Commission (SEC) Dr Emomotimi Agama has expressed worry over $50 billion worth of cryptocurrency transactions recorded in Nigeria between July 2023 and June 2024.

Agama who revealed this in a notice on Sunday that the situation raised concern over the low participation of citizens in the traditional capital market.

Agama said no fewer than four per cent of the country’s adult population were active investors.

The director-general described the low participation rate as a major impediment to economic growth and capital formation.

He noted that, while fewer than three million citizens invested in the capital market, more than 60 million engaged daily in gambling activities, spending an estimated $5.5 million every day.

”This reveals a paradox, an appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,” he said.

Agama also lamented that Nigeria’s market capitalisation to Gross Domestic Product ratio stood at about 30 per cent, far below South Africa’s 320 per cent, Malaysia’s 123 per cent, and India’s 92 per cent.

He said the disparity highlighted the urgent need to deepen financial inclusion and rebuild investors’ confidence.

”Nigeria’s $150 billion annual infrastructure deficit far exceeds the market’s contribution, with only N1.5 trillion approved in Public Private Partnership bonds.

”This shows a misalignment between financial innovation and national priorities,” he said.

The director-general called for a ‘reimagined SEC’ that served as both regulator and enabler of private-sector-driven growth.

(NAN)