From July 2023 to June 2024, cryptocurrency transactions in Nigeria surpassed the $50 billion mark, as reported by the Securities and Exchange Commission (SEC).
Dr. Emomotimi Agama, the Director-General of the SEC, recently expressed concern that this surge in cryptocurrency activity may be diverting attention away from Nigeria’s traditional capital markets.
He disclosed that only around four percent of Nigerian adults are currently engaged in conventional investment avenues.
According to Agama, this limited participation hampers Nigeria’s economic progress and restricts the buildup of long-term capital essential for sustainable growth.
While formal capital market investors number fewer than three million, more than 60 million Nigerians participate in daily sports betting, collectively placing wagers totaling approximately $5.5 million every day.
“This situation presents a paradox: there is a strong appetite for risk-taking, yet skepticism or lack of access prevents this energy from being channeled into productive investment ventures,” he observed.
He also pointed out that Nigeria’s market capitalization as a percentage of its Gross Domestic Product (GDP) stands at about 30 percent, a stark contrast to South Africa’s 320 percent, Malaysia’s 123 percent, and India’s 92 percent.
This disparity underscores the urgent need to boost financial inclusion and rebuild investor trust nationwide.
Furthermore, Agama highlighted Nigeria’s annual infrastructure funding gap of $150 billion, a sum far exceeding current market mobilization, with only N1.5 trillion raised through Public-Private Partnership bonds.
“This funding shortfall illustrates a disconnect between financial innovation and the country’s overarching economic goals,” he remarked.
In light of these challenges, the SEC Director-General called for a modernized regulatory framework-one that not only ensures compliance but also actively promotes private sector-driven economic development.