Abuja: The Securities and Exchange Commission (SEC) says over $50 billion worth of cryptocurrency transactions flowed through Nigeria between July 2023 and June 2024. The Director-General of SEC, Dr. Emomotimi Agama, highlighted the situation in a notice on Sunday, expressing concern over the low participation of citizens in the traditional capital market.
According to News Agency of Nigeria, Agama noted that no more than four percent of Nigeria’s adult population were active investors. He described this low participation rate as a significant barrier to economic growth and capital formation. Despite fewer than three million citizens investing in the capital market, over 60 million engage daily in gambling activities, spending an estimated $5.5 million every day.
“This reveals a paradox, an appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,” Agama stated. He further pointed out that Nigeria’s market capitalisation to Gross Domestic Product ratio is about 30 percent, significantly lower compared to South Africa’s 320 percent, Malaysia’s 123 percent, and India’s 92 percent.
Agama emphasized that this disparity underscores the urgent need to deepen financial inclusion and rebuild investors’ confidence. He also highlighted that Nigeria’s $150 billion annual infrastructure deficit far exceeds the market’s contribution, with only N1.5 trillion approved in Public Private Partnership bonds.
“This shows a misalignment between financial innovation and national priorities,” Agama concluded.