The Director General of the Securities and Exchange Commission (SEC) in Nigeria, Emomotimi Agama, has emphasized the potential of cryptocurrency to greatly benefit Nigeria’s unbanked population. According to local news media, Agama projected that Nigeria’s cryptocurrency market would reach $52.5 million by 2028 during the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria.
Agama highlighted that Nigeria’s cryptocurrency market is currently valued at over $400 million, with a significant portion of the population actively involved in crypto trading and transactions. He pointed out that approximately 33.4% of Nigerians own or use cryptocurrencies, presenting a unique opportunity to extend financial services to the country’s 38 million unbanked adults.
The SEC boss elaborated on the advantages of cryptocurrencies in providing financial services, particularly for individuals without traditional bank accounts. He emphasized that while some people may not have bank accounts, they do have wallets, highlighting the accessibility of cryptocurrencies.
Furthermore, Agama mentioned that cryptocurrencies could significantly reduce remittance costs, specifically mentioning Bitcoin (BTC) transactions as a means to make it easier and cheaper for Nigerians in the diaspora to send money back home. He also noted that Nigeria is one of the largest recipients of remittances in Africa.
However, Agama acknowledged the challenges associated with cryptocurrency use, including regulatory uncertainty, security concerns, and financial literacy issues. He stressed the importance of a balanced regulatory approach to harness the benefits of crypto assets while mitigating risks.
Agama called 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 Agama as the new head of the country’s SEC. Agama previously served as the managing director of the Nigerian Capital Market Institute.
Following Agama’s appointment, the SEC introduced an amendment to the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody. This amendment is specifically designed for virtual asset service providers and offers a path for these entities to comply with the new regulatory requirements.
In a related context, the article mentions a magazine titled “Deposit risk: What do crypto exchanges really do with your money?”