The Nigerian Securities and Exchange Commission (SEC) recently valued the country’s cryptocurrency industry to be worth more than $400m.
This information came from the Director General of SEC, Emomotimi Agama, as he spoke at the Abuja 2024 Annual Conference of the Association of Capital Market Academics in Nigeria (ACMAN).
According to local reports, Agama stated that Nigeria is one of the leading countries in terms of embracing virtual currencies. The country recorded $56.7 billion worth of transactions between July 2022 and June 2023, reflecting a YoY growth rate of 9%, which denotes growing crypto activities within its domain.
Therefore, this means that the country’s unbanked population (estimated to be about 33.4%) can access financial services via cryptocurrencies through digital wallets.
Additionally, it is believed that cryptocurrencies will help streamline cross-border payment systems, especially remittances by our migrants which may reduce transfer costs by half.
However, these benefits displace some of the problems experienced by Agama such as regulatory uncertainties, cyber risks, and insufficient financial knowledge among Nigerians. He also emphasized the importance of developing a balanced regulatory framework to foster innovation while protecting investors and consumers.
SEC Chairman Mairiga Katuka also addressed the conference, stressing the opportunities presented by cryptocurrencies for Nigeria’s financial markets. He further called for collaboration among stakeholders to develop a sustainable approach to cryptocurrency integration in the country’s financial system.
Also Read: Nigerian SEC Unveils New Digital Asset Rules, Compliance
