SEC Discloses Volume of Crypto Transactions in Nigeria, Cites New Law for Regulation
- The SEC says Nigeria recorded about $96bn in cryptocurrency and virtual asset transactions
- The Investment and Securities Act 2025 gives the SEC expanded powers to regulate digital assets
- Market capitalisation rose from N55tn to about N127tn, with its GDP ratio increasing significantly
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s digital finance space recorded about $96bn in cryptocurrency and other virtual asset transactions, according to the Securities and Exchange Commission (SEC).
Source: UGC
The Director-General of the Securities and Exchange Commission, Emomotimi Agama, disclosed this during a Citizens and Stakeholders Engagement Session organised by the Federal Ministry of Finance in Abuja on Monday, PUNCH reported.
Regulators move to strengthen oversight
Agama said the scale of activity in Nigeria’s digital asset ecosystem makes stronger regulatory oversight necessary.
He explained that recent legislation, the Investment and Securities Act 2025, has expanded the SEC’s authority to regulate digital assets and other financial technologies.
According to him, the law also reaffirms the SEC as the apex regulator of the capital market while introducing measures to monitor systemic risks and align Nigeria with global best practices.
Capital market records growth
The SEC boss noted that the Nigerian capital market has continued to support investments across key sectors of the economy.
He revealed that the commission approved about N3.68 trillion in new capital market issues in 2024, spanning equity and fixed income instruments.
Agama added that more than 31 banks raised funds through the capital market during the recent recapitalisation exercise to meet new requirements.
He also highlighted strong growth in market performance, stating that total market capitalisation rose from about N55tn in 2024 to roughly N127tn currently.
In addition, the ratio of market capitalisation to GDP increased from about 13 per cent to 33 per cent, reflecting improved contribution to the economy.
SEC intensifies investor protection efforts
Agama said the commission has stepped up efforts to protect investors and sustain confidence in the market.
He disclosed that the SEC issued over 90 advisory notices warning Nigerians about suspicious investment schemes and risky financial offers.
The regulator is also working with the Nigeria Police Force to investigate and prosecute fraudulent operators, including those behind Ponzi schemes.
He warned that many victims invest through unregistered platforms promising unrealistic returns and advised Nigerians to verify investment opportunities with the SEC.
Capital market supports infrastructure financing
The SEC DG explained that the capital market has played a role in financing infrastructure through bond issuances by state governments.
He noted that projects such as markets and stadiums have been funded through subnational bonds, with investors protected by the Irrevocable Standing Payment Order system, which ensures repayment from states’ allocations.
Agama added that the SEC has established an Office of Municipal Fund Development to help state and local governments access funding for grassroots projects.
He also said the commission supported the launch of a Mortgage Refinancing and Infrastructure Fund aimed at addressing Nigeria’s housing deficit by enabling access to long-term, single-digit mortgage financing.
Source: Getty Images
Government explains budget challenges
Also speaking at the event, a Permanent Secretary at the Federal Ministry of Finance addressed concerns about federal budget implementation.
According to him, Nigeria has struggled to meet its oil production benchmark of about 2.1 million barrels per day, while fluctuations in global crude prices have affected revenue.
He noted that although the budget benchmark was set at $75 per barrel, prices dropped below $60 at some points, reducing government income.
Rising debt servicing costs and increased salary obligations have also put pressure on available funds, he said.
FG forms team to study crypto, stablecoin
Legit.ng earlier reported that Nigeria may soon join the global wave of cryptocurrency adoption as the Central Bank of Nigeria (CBN) confirmed that the federal government was studying stablecoins, digital currencies pegged to real-world assets like the US dollar or naira, as part of its plan to modernise the financial system.
The CBN governor, Olayemi Cardoso, stated that the apex bank, in partnership with the Ministry of Finance and other key agencies, has set up dedicated working groups to explore a viable regulatory and operational framework for stablecoin adoption in Nigeria.
This would mark a major shift for Nigeria, whose central bank previously restricted cryptocurrency-related transactions in the banking sector.
Source: Legit.ng
