Abuja | October 27, 2025
Nigeria recorded cryptocurrency transactions worth more than $50 billion between July 2023 and June 2024, according to the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama.
With the current exchange rate of ₦1,500 to a U.S. dollar, this translates to approximately ₦75 trillion — about two-thirds of the total capitalization of the Nigerian Exchange Limited (NGX), which stood at ₦98.8 trillion as of Friday, October 24.
The SEC boss disclosed this staggering figure while speaking at the annual conference of the Chartered Institute of Stockbrokers (CIS) held in Lagos. His revelation sheds new light on Nigeria’s growing engagement with digital assets and the changing behavior of investors in Africa’s largest economy.
Cryptocurrency Activity Reflects Investor Sophistication
Dr. Agama described the surge in crypto activity as a sign of Nigeria’s “financial sophistication” and the “increasing risk appetite” of its predominantly young and tech-savvy population.
“The volume of digital asset transactions in Nigeria, exceeding $50 billion in just one year, underscores the level of innovation and financial engagement among Nigerian investors,” Agama said. “However, it also highlights the need for regulation that protects investors without stifling innovation.”
The SEC chief noted that the rise of cryptocurrency and other blockchain-based financial instruments presents both opportunities and challenges for the capital market. He emphasized that while the traditional stock market has struggled to attract younger investors, digital assets have become a powerful magnet for them.
“The new generation of investors prefers transparency, speed, and decentralized platforms. The challenge for regulators and market operators is to adapt our systems to meet this evolving demand,” Agama added.
Crypto Outpaces Traditional Markets in Volume and Reach
The $50 billion figure — roughly ₦75 trillion — represents a massive flow of funds through digital channels outside the traditional capital market infrastructure. For context, the Nigerian Exchange (NGX) recorded an average daily trading volume of about ₦11 billion during the same period, meaning the crypto market has already eclipsed the local equities market in terms of participation value.
This development reflects global trends in emerging markets where cryptocurrency adoption has accelerated amid economic instability and currency devaluation.
According to Chainalysis’ 2024 Global Crypto Adoption Index, Nigeria consistently ranks among the top three countries worldwide in peer-to-peer crypto activity, trailing only India and Vietnam. The report attributes this to Nigeria’s inflationary pressures, weak local currency, and limited access to foreign exchange — all of which push citizens toward digital alternatives.
Regulatory Balancing Act: SEC’s Approach to Digital Assets
The SEC has been taking cautious steps toward establishing a regulatory framework for digital assets since 2021. In May 2022, it released its Rules on Issuance, Offering Platforms, and Custody of Digital Assets, marking Nigeria’s first major attempt to bring cryptocurrencies under formal oversight.
However, full implementation has faced challenges, particularly in coordination with the Central Bank of Nigeria (CBN), which had previously restricted banks from processing cryptocurrency-related transactions.
Dr. Agama, who assumed office as SEC DG earlier this year, reiterated the Commission’s commitment to balancing investor protection with market innovation.
“Our goal is not to ban or discourage digital assets,” he said. “Instead, we want to create an ecosystem that ensures transparency, security, and accountability. The digital economy is the future, and Nigeria must position itself strategically.”
The SEC boss disclosed that the Commission is currently reviewing existing guidelines to accommodate evolving technologies such as tokenization, stablecoins, and decentralized finance (DeFi) platforms.
Crypto Adoption Driven by Youth and Remittances
A large share of Nigeria’s cryptocurrency transactions is reportedly driven by young professionals, freelancers, and small businesses who use digital assets for remittances, payments, and cross-border trade.
A report by the Nigerian Financial Intelligence Unit (NFIU) earlier this year estimated that over 22 million Nigerians hold or trade digital currencies, with a majority aged between 18 and 35 years.
Lagos, Abuja, and Port Harcourt remain the leading hubs for crypto activity, while emerging adoption is also being observed in university communities and technology clusters.
Maryam Sule, a fintech analyst based in Abuja, told reporters that Nigeria’s rapid crypto adoption reflects both necessity and opportunity.
“People are using crypto not just for speculation but for real economic activity — to receive payments, save value, and hedge against inflation,” she said. “With the naira’s depreciation and limited dollar access, digital currencies have become an alternative financial system.”
Economic Context: Naira Weakness and Capital Market Gaps
Nigeria’s macroeconomic challenges have also contributed to the cryptocurrency boom. The naira has lost more than 60 percent of its value since mid-2023 following the floating of the exchange rate under the Tinubu administration. Inflation remains stubbornly high, hovering above 30 percent, according to the National Bureau of Statistics (NBS).
Meanwhile, many retail investors have grown disillusioned with traditional investment vehicles such as stocks, bonds, and savings instruments, which have struggled to keep up with inflation.
Experts argue that the capital market must evolve to remain relevant. Professor Uche Uwaleke, a capital market scholar, said that while the SEC’s figures are striking, they should also serve as a “wake-up call” for Nigeria’s financial ecosystem.
“₦75 trillion in crypto transactions is not just a statistic — it’s a message,” Uwaleke said. “It tells us that Nigerians are financially active, but the regulated market is not providing the instruments they desire. We must innovate to bring these investors back into the formal market.”
Bridging the Gap: From Crypto to Capital Market
To bridge the gap between the crypto economy and the regulated capital market, the SEC says it is developing Digital Asset Exchanges (DAX) that would operate under strict compliance standards. These platforms, once licensed, would allow investors to trade tokenized assets — such as digital representations of shares, bonds, or commodities — within a controlled environment.
Dr. Agama revealed that consultations are ongoing with fintech firms, blockchain developers, and international regulators to design a system that balances innovation with oversight.
He noted that the SEC is also collaborating with the Central Bank of Nigeria and the Nigerian Communications Commission (NCC) to enhance cybersecurity and prevent financial crimes such as money laundering and fraud, which remain major concerns in the crypto space.
Global Perspective: Africa’s Crypto Frontier
Nigeria’s growing crypto market mirrors broader trends across Africa, where digital currencies are being embraced for remittances, trade, and savings.
Countries like Kenya, South Africa, and Ghana have also witnessed exponential growth in blockchain-based transactions. Analysts say Nigeria’s sheer population size and vibrant tech ecosystem position it as a potential leader in digital finance innovation.
Kemi Adeoye, an economist with Afrinvest, noted that cryptocurrency adoption could transform Nigeria’s financial inclusion landscape if properly regulated.
“Digital assets offer speed, transparency, and low-cost transactions that traditional banking cannot match,” Adeoye said. “If Nigeria can regulate effectively, it could turn this $50 billion market into a driver of national revenue, taxation, and investment.”
Challenges and the Road Ahead
Despite the positive momentum, several challenges remain. The lack of comprehensive regulation continues to expose investors to risks, including scams, volatility, and cybercrime.
Experts also warn that unregulated crypto activity can facilitate capital flight and undermine the effectiveness of monetary policy. The SEC has therefore pledged to intensify public education, collaborate with law enforcement, and ensure responsible market behavior.
The Commission is expected to roll out new Digital Asset Regulations 2.0 before the end of 2025, focusing on licensing exchanges, establishing investor safeguards, and creating a sandbox for fintech innovation.
Conclusion
Nigeria’s $50 billion cryptocurrency transaction volume between July 2023 and June 2024 underscores a major transformation in the country’s financial landscape.
It reflects the rise of a digitally empowered generation of investors, the limitations of traditional financial systems, and the urgent need for inclusive regulation.
As the SEC, CBN, and other stakeholders work to establish a balanced regulatory environment, Nigeria stands at a crossroads — one where digital finance could either deepen financial inclusion or create new systemic risks if left unchecked.
For now, one thing is clear: the digital asset revolution in Nigeria is unstoppable — and regulators must evolve as quickly as the market itself.
