The Securities & Exchange Commission (Nigeria) (SEC) has revealed that over US $50 billion in cryptocurrency transactions were conducted by Nigerian users between July 2023 and June 2024. The Director-General, Emomotimi Agama, delivered the disclosure in a statement on Sunday, highlighting a striking disconnect between the volume of crypto flows and domestic participation in the formal capital-market system.
Dr Agama noted that fewer than 4 per cent of Nigeria’s adult population are active investors in traditional capital markets, with under three million registered participants. In stark contrast, he referenced data suggesting that over 60 million Nigerians engage daily in gambling activities — collectively spending an estimated US $5.5 million per day. “This reveals a paradox: a clear appetite for risk exists, but not the trust or access to channel that energy into productive investment,” he commented.
On a structural level, Nigeria’s market-capitalisation-to-GDP ratio stood at around 30 per cent — far behind South Africa (320 %), Malaysia (123 %) and India (92 %). Agama argued that the disparity underscores an urgent need to deepen financial inclusion and rebuild investor confidence. He further pointed out that Nigeria’s annual infrastructure-financing shortfall of US $150 billion significantly outpaces the contribution from capital markets, which saw just N₦1.5 trillion approved via Public Private Partnership (PPP) bonds. “This shows a misalignment between financial innovation and national priorities,” he stated.
Agama called for a transformed SEC — one that serves not only as regulator but also as enabler of private-sector-driven growth. He emphasised the importance of bridging the trust gap and improving access to formal investment channels, thereby enabling Nigeria’s risk-taking populace to channel funds into productive assets rather than speculative ones.
This development raises two key implications. First, the high volume of crypto activity signals that a substantial portion of Nigeria’s financially active population is operating outside regulated investment environments. Second, the formal capital market is under-leveraged, constrained by low participation, limited trust and insufficient infrastructure.
In effect, Nigeria faces a bifurcated investment landscape: a booming informal risk-channel via cryptocurrency, and a relatively thin formal capital-market structure. For policymakers and regulators, the challenge lies in converting the latent risk appetite into productive, regulated investment flows that support infrastructure financing and inclusive growth.
As Nigeria continues its financial-market evolution, the SEC’s disclosures mark an important signal that attention must shift from simply offering instruments to creating trust, access and channels that align with citizen behaviour and national economic priorities.
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