SEC raises alarm over $50bn crypto flow, low capital market participation
The Securities and Exchange Commission (SEC) has expressed concern over the growing disparity between cryptocurrency activity and participation in Nigeria’s traditional capital market, revealing that over $50 billion worth of crypto transactions passed through the country between July 2023 and June 2024.
Director-General of the Commission, Dr. Emomotimi Agama, disclosed this in a statement on Sunday, noting that only about four per cent of Nigeria’s adult population are active investors in the capital market.
Agama described the low participation rate as a major obstacle to economic growth and capital formation, stressing that fewer than three million Nigerians invest in the capital market, while over 60 million engage in gambling daily, spending an estimated $5.5 million.
READ ALSO:
- Osimhen shines again as Galatasaray defeat Göztepe 3–1
- Police bust alleged baby factory in Ondo, rescue pregnant teenagers
- Troops foil infiltration attempt, neutralize 10 insurgents in Borno ambush
“This reveals a paradox. An appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,” he said.
He lamented that Nigeria’s market capitalisation to Gross Domestic Product (GDP) ratio stands at approximately 30 per cent, significantly lower than South Africa’s 320 per cent, Malaysia’s 123 per cent, and India’s 92 per cent.
Agama said the figures underscore the urgent need to deepen financial inclusion and rebuild investor confidence, especially as the country grapples with a $150 billion annual infrastructure deficit.
He noted that only N1.5 trillion has been approved in Public Private Partnership bonds, describing the situation as a misalignment between financial innovation and national priorities.
The SEC boss called for a reimagined Commission that functions not only as a regulator but also as a catalyst for private-sector-led growth.