Nigeria recorded cryptocurrency transactions valued at more than $50 billion between July 2023 and June 2024, according to the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama.
At an exchange rate of ₦1,500 to the dollar, the figure translates to roughly ₦75 trillion nearly two-thirds of the total capitalization of the Nigerian equities market, which stood at ₦98.8 trillion as of Friday, October 24.
Agama disclosed the data while speaking at the annual conference of the Chartered Institute of Stockbrokers, describing the massive crypto volume as both a sign of financial sophistication and a symptom of deep structural gaps in Nigeria’s investment ecosystem.
Crypto Popularity vs. Capital Market Apathy
The SEC chief noted that the growing enthusiasm for digital assets highlights an evolving risk appetite among Nigerians especially the youth yet exposes the failure of the traditional capital market to capture this demographic.
“The volume of digital asset transactions underscores both the financial ingenuity and the appetite for risk among Nigerians,” Agama said. “However, this same energy is largely absent from the formal investment market.”
Despite the vibrant crypto engagement, fewer than 4% of Nigeria’s adult population actively invests in the capital market. By contrast, over 60 million Nigerians participate daily in gambling and betting activities, collectively wagering an estimated $5.5 million per day, according to Agama.
He described this as a paradox that reveals a mismatch between Nigerians’ willingness to take risks and their confidence in regulated investment platforms.
“An appetite for risk clearly exists,” he added, “but not the trust or access to channel that energy into productive investment.”
A Warning for the Financial Ecosystem
Agama warned that the dominance of speculative trading and gambling over structured investment activities represents a critical drag on capital formation and sustainable economic growth. He stressed that the capital market’s limited reach — with fewer than three million registered investors nationwide remains a major obstacle to mobilizing long-term domestic capital.
He emphasized that rebuilding trust, strengthening investor education, and leveraging digital platforms are essential to draw younger Nigerians away from speculative markets and into productive financial participation.
Policy Implications and Market Reform
The SEC chief reaffirmed the Commission’s commitment to developing a robust regulatory framework for digital assets, one that encourages innovation while safeguarding investors and maintaining market integrity.
Industry experts say the figures underscore the urgent need for Nigeria’s financial regulators to modernize capital market instruments, enhance transparency, and embrace technology-driven investment models that resonate with digital-native investors.
“The crypto boom has revealed what’s possible when people have access, autonomy, and low barriers to entry,” said Tunde Ojo, a financial analyst. “For the traditional market to compete, it must become more inclusive, faster, and more transparent.”
A Call to Rebuild Confidence
Agama concluded by urging policymakers, brokers, and institutional investors to rethink their approach to market development, warning that the continued dominance of speculative behavior over structured investment reflects a deeper erosion of confidence in Nigeria’s financial system.
The SEC, he added, will continue to engage stakeholders to ensure that Nigeria’s capital market evolves alongside global trends, integrating new technologies while retaining investor protection as its cornerstone.
