Key Highlights
- Nigeria recorded about $96 billion in crypto transactions, highlighting massive adoption.
- New securities law gives regulators expanded authority over digital assets.
- Officials are intensifying action against fraud, scams, and unregistered platforms.
Nigeria processed an estimated $96 billion in cryptocurrency and virtual asset transactions, according to the head of the country’s capital markets regulator, highlighting the growing scale of digital finance in Africa’s largest economy.
According to a local report, Securities and Exchange Commission Nigeria Director-General Emomotimi Agama said the volume underscores the need for stronger supervision of the sector to ensure financial stability and investor protection.
The disclosure came during a public engagement session organized by the Federal Ministry of Finance Nigeria in Abuja.
New law expands oversight of digital assets
Regulators now have broader authority following the enactment of the Investment and Securities Act 2025, which explicitly empowers the SEC to supervise digital assets and emerging financial technologies.
The new regulations are intended to bring Nigeria’s capital markets in line with global best practices while also giving the authorities the ability to monitor systemic risk from growing crypto markets. At the same time, it reinforces the SEC’s position as the main capital market regulator in Nigeria.
Crypto growth adds to regulatory pressure
Alongside the rise of crypto, Nigeria’s broader capital market has expanded sharply in recent years. The SEC approved new capital issues worth trillions of naira in 2024, covering equities and fixed-income instruments. More than 30 banks also raised funds through the market during a recent recapitalization drive.
Total market capitalization has climbed significantly, with officials noting a sharp increase relative to gross domestic product, a sign of deepening financial participation but also heightened exposure to market risks.
Crackdown on fraud and unregistered platforms
Authorities say the surge in digital finance activity has been accompanied by an increase in scams and high-risk investment schemes.
The SEC reported issuing dozens of warnings about suspicious offers, including unregistered platforms promising unusually high returns, a common feature of Ponzi schemes. Regulators are working with the Nigeria Police Force to investigate and prosecute fraudulent operations, urging investors to verify whether platforms are properly authorized.
What it means
Nigeria is one of the world’s most active cryptocurrency markets, driven by currency volatility, limited access to foreign exchange, and widespread mobile adoption.
As transactional volumes of cryptocurrencies get closer to those of significant financial industries, regulators are being pushed to find a balance between supporting innovation and safeguarding users, which might define Nigeria’s digital economy in the coming years.
Also Read: India’s Rising Crypto Scams: Hyderabad Seniors Duped of ₹4.4 Crore
