Nigeria records $96bn in cryptocurrency transactions as SEC tightens oversight

Nigeria’s digital finance ecosystem recorded about $96 billion in cryptocurrency and other virtual asset transactions, underscoring the rapid expansion of the country’s digital asset market and the growing need for stronger regulatory oversight.

Emomotimi Agama, director-general of the Securities and Exchange Commission (SEC), disclosed this during a citizens and stakeholders engagement session organised by the Federal Ministry of Finance in Abuja on Monday.

Agama said the scale of activity within Nigeria’s virtual asset ecosystem highlights the importance of bringing the sector under clear regulatory supervision to safeguard investors and maintain financial system stability.

Read also: SEC’s capital hike puts survival of the fittest to the test

“As we speak, research and statistics show that virtual asset service providers and the digital space cryptocurrency operation in Nigeria have a transaction flow of $96 billion, which is important for us to manage,” he said.

Nigeria has emerged as one of the most active cryptocurrency markets globally, driven by factors such as a large youthful population, high mobile penetration, and the increasing adoption of digital financial services.

Agama said the regulatory framework for digital assets has been strengthened by the Investment and Securities Act 2025, which grants the commission powers to regulate digital assets and other financial technologies.

According to him, the legislation reaffirms the SEC as the apex regulator of the Nigerian capital market and introduces provisions for monitoring systemic risks and aligning market operations with global standards.

Agama also said the commission approved about N3.68 trillion worth of new capital market issues in 2024, covering both equity and fixed income instruments.

He added that the capital market supported the banking sector during the recapitalisation exercise, with more than 31 banks raising funds through the market to meet new capital requirements.

According to him, total market capitalisation increased from about N55 trillion in 2024 to N127 trillion, while the ratio of market capitalisation to gross domestic product rose from about 13 percent to roughly 33 percent.

Agama said the commission issued more than 90 advisory notices warning Nigerians about suspicious investment schemes and financial offers.

He said the regulator has also worked with the Nigeria Police Force to investigate and prosecute fraudulent investment operations, including Ponzi schemes.

He advised investors to verify whether any investment opportunity has been approved by the SEC before committing funds.

Agama said the capital market has also supported infrastructure development through bond issuances by state governments.

According to him, projects such as markets, stadiums, and other infrastructure have been financed through subnational bonds raised in the capital market.

He said investors in state bonds are protected through the Irrevocable Standing Payment Order, which allows repayments to be deducted from states’ allocations from the Federation Account.

Agama disclosed that the SEC has established an Office of Municipal Fund Development to assist state and local governments in accessing capital market funding for development projects.

He added that the commission supported the launch of the Mortgage Refinancing and Infrastructure Fund to provide long-term funding that enables Nigerians to obtain mortgages at single-digit interest rates.

Agama said the commission plans to increase the market capitalisation-to-GDP ratio from about 30 percent towards levels seen in emerging markets such as India, where the ratio stands at about 92 percent.

Also speaking at the session, Raymond Omachi, the permanent secretary of the federal ministry of finance, addressed concerns about federal budget implementation.

He said several factors have affected budget performance, including Nigeria’s inability to meet its oil production benchmark of about 2.1 million barrels per day and fluctuations in global crude oil prices.

According to him, the budget benchmark was set at $75 per barrel, but prices at some point dropped below $60 per barrel, reducing government revenue.

Read also: Agama: Celebrating tailwinds, navigating headwinds

He said rising debt servicing obligations and salary commitments have also placed pressure on available funds.

The Permanent Secretary said the ministry now holds weekly cash management meetings every Monday to review government finances and identify measures to improve revenue performance.

He added that budget implementation is expected to improve once Nigeria returns to a single budget cycle, noting that efforts are underway to collapse overlapping budgets so that the country will run only one national budget from 2026 onward.