Nigeria’s digital asset market has seen approximately $96 billion in cryptocurrency and virtual asset transactions, according to the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama.
Speaking at a Citizens and Stakeholders Engagement Session organized by the Federal Ministry of Finance on Monday, Agama highlighted the massive scale of activity in the sector, underscoring the urgent need for stronger regulatory supervision to manage systemic risks and protect investors.
“It is a known fact from research and statistics that virtual asset service providers and the broader digital space, including cryptocurrency operations, are within the range of $96 billion in transaction flow in Nigeria,” he said. “That is important for us to manage.”
The figure reflects Nigeria’s position as one of Africa’s leading crypto adoption markets, driven by youth demographics, remittances, hedging against currency volatility, and growing fintech innovation.
Agama noted that the regulatory landscape has been significantly strengthened with the enactment of the **Investment and Securities Act 2025, which explicitly empowers the SEC to oversee digital assets and emerging financial technologies. The legislation reaffirms the commission’s role as the apex regulator of the capital market while introducing provisions to monitor systemic risks and align with international standards.
Beyond crypto, Agama outlined the broader performance of Nigeria’s capital market. The SEC approved roughly N3.68 trillion in new capital market issuances in 2024, spanning equity and fixed-income instruments. The market also played a pivotal role in the recent banking recapitalisation drive, with more than 31 banks raising funds through public offerings and other instruments to meet new minimum capital requirements.
Market capitalisation has grown impressively, rising from about N55 trillion in 2024 to roughly N127 trillion currently. The ratio of market capitalisation to GDP has climbed from around 13% to approximately 33%, signaling deeper financial intermediation and growing investor participation.
To safeguard investors, the SEC has issued over 90 advisory notices warning against unregistered schemes and high-risk offers. The commission has intensified enforcement against fraudulent operations, including Ponzi schemes, in collaboration with the Nigeria Police Force.
Agama cautioned that many victims fall for unregistered platforms promising unrealistic returns, urging Nigerians to verify SEC approval before investing.
The capital market has also supported infrastructure financing through subnational bonds issued by state governments. Projects ranging from markets and stadiums to other public works have been funded via these instruments, with investor protection enhanced by the Irrevocable Standing Payment Order (ISPO) system, which deducts repayments directly from states’ federal allocations.
Looking forward, Agama revealed plans to deepen the market, targeting a higher market capitalisation-to-GDP ratio closer to levels seen in peers like India (around 92%). The SEC has established an Office of Municipal Fund Development to assist state and local governments in accessing capital market funding for grassroots projects and supported the launch of the Mortgage Refinancing and Infrastructure Fund to tackle the housing deficit through long-term, single-digit mortgage financing.
The engagement session also addressed federal budget implementation challenges. The Permanent Secretary of the Ministry of Finance cited difficulties meeting the oil production benchmark of 2.1 million barrels per day, fluctuations in global crude prices (with the budget benchmark set at $75 per barrel but actual prices dipping below $60 at times), rising debt servicing costs, and increased salary obligations as key constraints.
To improve performance, the ministry now holds weekly cash management meetings every Monday to monitor revenue and expenditure closely. The Permanent Secretary expressed optimism that budget execution would strengthen once Nigeria transitions to a single, non-overlapping national budget cycle starting in 2026.
