Nigeria’s digital currency sector has recorded an estimated $96 billion in transaction volume, highlighting the fast rise of fintech in Africa’s largest economy and the growing need for stricter regulation, according to the country’s securities watchdog.
The figure was revealed by the Director-General of the Securities and Exchange Commission, Emomotimi Agama, during a stakeholder meeting in Abuja hosted by the Federal Ministry of Finance. He noted that the volume of crypto activity has reached a level that requires enhanced supervision of virtual asset service providers.
Agama emphasised that available data shows cryptocurrency transactions in Nigeria are within the $96 billion range, stressing the importance of properly managing the sector.
This rapid expansion reinforces Nigeria’s standing as one of the most active crypto hubs globally, fueled by a youthful, tech-oriented population, pressure on the local currency, and increased reliance on alternative financial solutions. Despite this growth, authorities remain concerned about risks such as fraud, market instability, and potential threats to the financial system.
He added that the recently passed Investment and Securities Act 2025 has broadened the SEC’s powers to regulate digital assets and new financial innovations. The legislation formally positions the commission as the primary regulator of the capital market while introducing measures to track risks and align with international standards.
Outside the crypto space, the SEC highlighted progress in the wider capital market. In 2024, it approved roughly ₦3.68 trillion in new issuances, equivalent to about $2.45 billion, spanning both equities and debt instruments. The market also supported banking sector reforms, with over 31 financial institutions raising funds to meet updated capital requirements.
There has also been a significant rise in market capitalisation, increasing from ₦55 trillion (around $36.7 billion) in 2024 to approximately ₦127 trillion (about $84.7 billion) currently. This growth has pushed the market capitalisation-to-GDP ratio from 13 percent to roughly 33 percent, indicating stronger ties between the capital market and the broader economy.
Meanwhile, investor protection remains a priority. Agama disclosed that the SEC has issued more than 90 warnings to alert the public about dubious schemes and high-risk investments, noting that many individuals fall victim to platforms offering unrealistic returns without proper registration.
The commission has also intensified enforcement efforts, collaborating with the Nigeria Police Force to investigate and prosecute fraudulent operators, particularly those involved in Ponzi schemes.
In addition, capital markets are playing a growing role in funding infrastructure. State governments have raised funds through bond issuances to finance projects such as markets and stadiums, with repayment secured through the Irrevocable Standing Payment Order system, which deducts funds directly from federal allocations.
Looking forward, the SEC plans to further expand the market, aiming to achieve a capitalisation-to-GDP ratio comparable to that of major emerging economies like India.
Separately, the Ministry of Finance pointed to ongoing fiscal challenges, including lower-than-anticipated oil output and fluctuating crude prices. With the budget benchmark set at $75 per barrel but prices occasionally dropping below $60, revenue gaps have widened alongside increasing debt servicing and wage obligations.
Authorities say improved fiscal oversight and plans to return to a single annual budget cycle by 2026 are expected to enhance budget execution and strengthen economic stability.