The Director-General of the Securities and Exchange Commission, Emomotimi Agama, disclosed the figure during a stakeholder engagement session in Abuja organised by the Federal Ministry of Finance. He described the scale of activity as significant enough to demand stronger oversight of virtual asset operators.
“It is a known fact from research and statistics that… cryptocurrency operation is within the range of $96bn in transaction flow in Nigeria, and that is important for us to manage,” Agama said.
The surge highlights Nigeria’s position as one of the world’s most active crypto markets, driven by a young, tech-savvy population, currency pressures, and growing adoption of alternative financial systems. However, regulators have increasingly raised concerns about fraud, volatility, and systemic risks linked to the sector.
Agama said the newly enacted Investment and Securities Act 2025 has significantly strengthened the commission’s authority to oversee digital assets and emerging financial technologies. The law formally recognises the SEC as the apex regulator of Nigeria’s capital market and introduces provisions to monitor risks and align local rules with global standards.
Capital market expansion fuels banking recapitalisation and economic growth
Beyond digital assets, the regulator pointed to broader gains in Nigeria’s capital market. The SEC approved approximately ₦3.68tn in new issuances in 2024, equivalent to about $2.45bn at current exchange rates, across equities and fixed-income instruments. The market also played a central role in banking sector reforms, with more than 31 lenders raising capital to meet new regulatory requirements.
Market capitalisation has also expanded sharply, rising from ₦55tn, roughly $36.7bn, in 2024 to about ₦127tn, or approximately $84.7bn, as of now. This growth has lifted the market capitalisation-to-GDP ratio from 13 per cent to around 33 per cent, reflecting a deeper integration of capital markets into the broader economy.
At the same time, authorities are intensifying efforts to protect investors. Agama revealed that the SEC has issued more than 90 advisories warning Nigerians about suspicious schemes and high-risk investment offers. He cautioned that many victims are drawn in by unregistered platforms promising unrealistic returns.
The commission has also stepped up enforcement actions, working with the Nigeria Police Force to investigate and prosecute fraudulent operators, particularly those linked to Ponzi schemes.
Meanwhile, the capital market is increasingly being used to finance public infrastructure. State governments have raised funds through bond issuances to support projects ranging from markets to stadiums, with repayment mechanisms backed by the Irrevocable Standing Payment Order system, which deducts obligations directly from federal allocations.
Looking ahead, the SEC aims to further deepen the market, targeting a capitalisation-to-GDP ratio closer to levels seen in major emerging economies such as India.
Separately, the finance ministry acknowledged ongoing fiscal pressures, citing lower-than-expected oil production and volatile crude prices. With the budget benchmark set at $75 per barrel but prices at times falling below $60, revenue shortfalls have been compounded by rising debt servicing and salary obligations.
Officials say tighter fiscal monitoring and a planned return to a single annual budget cycle by 2026 are expected to improve execution and stabilise public finances.
