The Securities and Exchange Commission (SEC) has said that the adoption of cryptocurrency will benefit the Nigerian economy as the market grows to over $400m.
The SEC said this in a presentation by the Director-General of SEC, Emomotimi Agama during the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) and SEC.
The theme was, ‘Crypto Assets and the Nigerian Economy: Implications for Financial Markets Regulation.’
Agama said that Nigeria’s crypto market is estimated to be worth over $400m, with a significant portion of the population involved in cryptocurrency trading and transactions.
According to him, the volume of the cryptocurrency market in Nigeria would hit $52.5m in 2028, indicating a 12.66 per cent increase between 2024 to 2028.
He said, “Cryptocurrencies have the potential to bring financial services to the unbanked and underbanked populations, which constitute a significant portion of Nigeria’s populace.
“By fostering a supportive regulatory environment, Nigeria can attract blockchain and fintech startups, driving economic growth and job creation.
“Nigeria has the opportunity to position itself as a leader in the African crypto space, leveraging its large market and innovative youth.”
He said approximately 33.4 per cent of Nigerians own or use cryptocurrencies, noting that the country can take advantage of the large number to further provide financial services for the over 38 million unbanked adults.
Agama said, “The future outlook for crypto regulation in Nigeria is promising. Potential regulatory innovations, such as regulatory sandboxes for fintech and crypto startups, can provide a controlled environment to test new products and services.
“The development of a Central Bank Digital Currency (CBDC) is another exciting prospect. Our long-term vision is to integrate crypto assets into the broader financial system, fostering a dynamic and inclusive digital economy.
“By promoting sustainable and responsible innovation, we can create a favorable environment for blockchain technology adoption.”
The Chairman of the SEC, Mr. Mairiga Katuka said the introduction of crypto presents an advantage for the markets.
He said, “Together we can drive the development of a vibrant resilient capital market in line with President Bola Tinubu’s dream of making Nigeria a prime investor destination.
“Let us work together to build a capital market that does not only see The needs of today but also anticipates the problems of tomorrow with a view to finding solutions before the issues arise”