The Securities and Exchange Commission (SEC) has said that over $50 billion in cryptocurrency transactions flowed through Nigeria between July 2023 and June 2024.
The Director-General of SEC, Dr Emomotimi Agama, said in a notice on Sunday that the situation raised concerns over the low participation of citizens in the traditional capital market.
Mr Agama said no fewer than four per cent of the country’s adult population were active investors.
The director-general described the low participation rate as a major impediment to economic growth and capital formation.
He noted that, while fewer than three million citizens invested in the capital market, more than 60 million engaged daily in gambling activities, spending an estimated $5.5 million every day.
”This reveals a paradox: an appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,” he said.
Agama lamented that Nigeria’s market capitalisation-to-gross domestic product ratio stood at about 30 per cent, far below South Africa’s 320 per cent, Malaysia’s 123 per cent, and India’s 92 per cent.
He said the disparity highlighted the urgent need to deepen financial inclusion and rebuild investors’ confidence.
”Nigeria’s $150 billion annual infrastructure deficit far exceeds the market’s contribution, with only N1.5 trillion approved in public-private partnership bonds. This shows a misalignment between financial innovation and national priorities,” he said.
The director-general called for a ‘reimagined SEC’ that would serve as both a regulator and an enabler of private-sector-driven growth.
