SEC Director-General, Dr. Emomotimi Agama, has revealed that Nigeria recorded over $50 billion in crypto transactions between July 2023 and June 2024.
The Commission, in a statement released on Sunday, quoted Agama as stating the heightened activity in the crypto market is the rising sophistication and risk tolerance of Nigerian investors a trend the traditional capital market is yet to capitalize on.
Presenting a paper titled “Evaluating the Nigerian Capital Market Masterplan 2015–2025” at the Chartered Institute of Stockbrokers annual conference, Agama lamented that fewer than four percent of Nigerian adults participate in the capital market, which he termed a major setback to capital formation and economic development.
He contrasted the figure with the country’s gambling statistics, revealing that over 60 million Nigerians gamble every day, making an estimated $5.5 million a day.
“This is revealing a paradox the desire for risk certainly exists, but not the faith or access to channel that energy into productive investment,” he explained.
Agama also wondered at Nigeria’s 30 percent market capitalization-to-GDP ratio far below South Africa’s 320 percent, Malaysia’s 123 percent, and India’s 92 percent.
Retracing steps to the Capital Market Masterplan (CMMP) 2015–2025, he uncovered that less than half of the 108 initiatives contained in the plan were done to completion because there was poor alignment with national policies, poor tracking, and little stakeholder engagement.
Amidst product improvement in the likes of Green Bonds, Sukuk, fintech inclusion, and non-interest finance, Agama admitted that market liquidity remains skewed in favor of a few large-cap stocks such as Airtel Africa, Dangote Cement, and MTN Nigeria.
Six issues are central in driving the next cycle of reform, according to him: low retail participation, concentration in the market, eroding foreign inflows, underdeveloped pension assets, untapped diaspora capital, and an expanding infrastructure financing gap.
“Nigeria’s $150 billion yearly infrastructure deficit dwarfs the market contribution and as much as N1.5 trillion has only been approved in PPP bonds,” he further stated.
Asserting a “reimagined SEC” as both regulator and growth driver, Agama said the next decade must emphasize transparency, trust-building, and inclusion.
“Vision without implementation is inertia and reform without measurement is aspiration without responsibility,” he concluded.
