Nigeria’s fast-growing digital finance space has recorded an estimated $96bn in cryptocurrency and virtual asset transactions, highlighting both the scale of adoption and the urgency for stronger regulatory control.
The disclosure was made by Emomotimi Agama, Director-General of the Securities and Exchange Commission Nigeria, during a citizens and stakeholders’ engagement session organised by the Federal Ministry of Finance Nigeria in Abuja.
Agama noted that the volume of activity in Nigeria’s digital asset ecosystem has reached a level that requires structured oversight to safeguard investors and maintain financial stability. He said the regulatory landscape has been strengthened by the enactment of the Investment and Securities Act 2025, which empowers the commission to supervise digital assets and emerging financial technologies.
According to him, the legislation reinforces the SEC’s role as the apex regulator of Nigeria’s capital market while introducing new provisions to monitor systemic risks and align local practices with international standards.
Beyond digital assets, Agama highlighted strong growth in the broader capital market. The commission approved approximately N3.68tn in new capital market issuances in 2024, spanning equities and fixed-income instruments. He added that more than 31 banks accessed the market to raise funds during the recent recapitalisation exercise, underlining its importance to the financial system.
Market performance has also improved significantly, with total capitalisation rising from about N55tn in 2024 to roughly N127tn. This growth has increased the market capitalisation-to-GDP ratio from 13 per cent to around 33 per cent, reflecting a deeper contribution of the capital market to the economy.
Agama said the commission has intensified investor protection efforts, issuing over 90 advisory notices warning Nigerians about suspicious investment schemes. He cautioned that many victims fall prey to unregistered platforms promising unrealistic returns and urged investors to verify opportunities with the SEC before committing funds.
The regulator has also stepped up enforcement actions against fraudulent operations, including Ponzi schemes, in collaboration with the Nigeria Police Force to investigate and prosecute offenders.
In terms of development financing, the SEC boss noted that the capital market has supported infrastructure projects through bond issuances by state governments. These include funding for public assets such as markets and stadiums, with investor protection enhanced by the Irrevocable Standing Payment Order mechanism, which ensures repayments are deducted directly from states’ federal allocations.
To further expand access to funding, the commission has established an Office of Municipal Fund Development to assist subnational governments in raising capital for grassroots projects.
Agama also pointed to initiatives aimed at addressing Nigeria’s housing deficit, including support for a mortgage refinancing and infrastructure fund designed to provide long-term financing and enable access to single-digit mortgage rates.
Looking ahead, he said the SEC aims to deepen the market further by increasing the capitalisation-to-GDP ratio towards levels seen in emerging economies such as India, where the ratio is significantly higher.
Meanwhile, a senior official at the Finance Ministry acknowledged ongoing challenges in budget implementation. These include lower-than-expected oil production—falling short of the 2.1 million barrels per day benchmark—volatile global crude prices, rising debt servicing costs and increased wage obligations.
The ministry, he said, has introduced weekly cash management meetings to closely monitor revenue and expenditure, while working towards consolidating overlapping budgets into a single national budget cycle by 2026 to improve fiscal efficiency.