SEC DG reveals $50bn crypto trade flow as Nigeria faces low capital market participation and weak investor confidence.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, says more than $50 billion worth of crypto-currency transactions were conducted in Nigeria between July 2023 and June 2024.
According to Dr. Agama, this reflects growing public interest in high-risk digital assets outside the country’s formal financial market.
Agama made this revelation at the annual conference of the Chartered Institute of Stockbrokers (CIS), where he presented a lead paper titled “Evaluating the Nigerian Capital Market Masterplan 2015–2025.”
Threat To Economic Growth
Despite the surge in digital trading, Agama expressed concern that fewer than four percent of Nigeria’s adult population participate in the formal capital market, a trend he described as a threat to economic growth and capital formation.
While Nigeria has fewer than three million active investors, he noted that more than 60 million citizens engage in gambling daily, spending an estimated $5.5 million every day.
“This reveals a paradox, the appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,” Agama said.
He added that Nigeria’s market capitalization-to-GDP ratio is only 30 percent, far below other emerging markets such as South Africa (320%), Malaysia (123%), and India (92%), underscoring the need to deepen financial inclusion and rebuild investor confidence.
Achievements and Gaps
Reflecting on the Capital Market Master Plan (CMMP) 2015–2025, Agama said it was designed to position Nigeria’s market as a driver of long-term economic transformation through financing for infrastructure and enterprise growth.
“As we stand at the sunset of that ten-year plan, our task is not ceremonial; it is reflective and diagnostic. We must ask: what did we achieve, where did we fall short, and what lessons must anchor our next decade of reforms?” he stated.
He revealed that less than half of the 108 initiatives in the plan were fully implemented, citing weak alignment with national policies, limited stakeholder ownership, and poor tracking mechanisms.
Despite progress in Green Bonds, Sukuk, fintech integration, and non-interest finance, liquidity remains concentrated in a few large-cap companies such as Airtel Africa, Dangote Cement, and MTN Nigeria.
Key Challenges Ahead
Agama listed six major challenges confronting the next reform phase:
- Low retail participation in the capital market.
- Market concentration around a few dominant stocks.
- Declining foreign investment inflows.
- Underutilized pension funds.
- Untapped diaspora capital.
- A widening infrastructure financing gap.
He emphasized that Nigeria’s $150 billion annual infrastructure deficit far exceeds the capital market’s contribution, with only ₦1.5 trillion approved in PPP bonds, revealing a mismatch between financial innovation and development priorities.
Call for a Reimagined SEC
Agama urged for a reimagined Securities and Exchange Commission that operates not only as a regulator but also as a catalyst for private-sector-led growth.
“Vision without execution is inertia — and reform without measurement is aspiration without accountability,” he concluded.
He stressed that the next decade must focus on trust, transparency, and inclusion to attract retail investors and harness Nigeria’s vast financial potential.
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