The Director General of the Securities and Exchange Commission (SEC) in Nigeria, Emomotimi Agama, has highlighted the potential of cryptocurrency to significantly benefit the country’s unbanked population. 

According to local news media, at the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN), Agama projected that Nigeria’s cryptocurrency market would reach $52.5 million by 2028.

Crypto adoption and volume of transactions

Agama noted that Nigeria’s cryptocurrency market is currently valued at over $400 million, with a substantial portion of the population engaged in crypto trading and transactions.

The SEC boss emphasized that approximately 33.4% of Nigerians own or use cryptocurrencies, which presents a unique opportunity to extend financial services to the country’s over 38 million unbanked adults.

Agama elaborated on the advantages of cryptocurrencies in providing financial services, particularly for those without traditional bank accounts. “Some people don’t have bank accounts, but they have wallets,” he remarked, highlighting the accessibility of cryptocurrencies.

Additionally, Agama pointed out that cryptocurrencies could significantly reduce remittance costs, with Bitcoin transactions making it easier and cheaper for Nigerians in the diaspora to send money home. He noted that Nigeria is one of Africa’s largest recipients of remittances.

SEC DG supports clear crypto regulations

However, Agama also acknowledged the challenges associated with cryptocurrency use, including regulatory uncertainty, security concerns, and financial literacy issues. He emphasized the need for a balanced regulatory approach to harness the benefits of crypto assets while mitigating risks.

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Agama emphasized the need for a clear regulatory framework, improved cybersecurity measures, and financial education to protect investors and promote a healthy digital asset market.

In April, Nigerian President Bola Ahmed Tinubu appointed Emomotimi Agama, as the new chair of the SEC. Agama was the former managing director of the Nigerian Capital Market Institute (NCMI).

Soon after, the SEC introduced an amendment to the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody.

This program is specifically designed for virtual assets service providers (VASPs) and offers a path for these entities to align with the new regulatory requirements.

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