The Director General of the Securities and Exchange Commission (SEC) in Nigeria, Emomotimi Agama, has emphasized the potential benefits of cryptocurrency for Nigeria’s unbanked. Agama projected that Nigeria’s cryptocurrency market would reach $52.5 million by2028 during the Annual Conference of the Association of Capital Market Academics of Nigeria.
Agama highlighted Nigeria’s current cryptocurrency market is valued at over $400 million, with a number of Nigerians engaged in crypto trading and transactions. He also pointed out that approximately 33.4% of Nigerians own or use cryptocurrencies, presenting an opportunity to financial services the country’s unbanked adults.
Cryptocurrencies offer advantages in providing financial services to those without traditional bank accounts, as many people have wallets even if they don’t have bank accounts, according to Agama. He further noted that cryptocurrencies could reduce remittance costs significantly, benefiting Nigerians in the diaspora who send money back home.
However, Agama acknowledged challenges such as regulatory uncertainty, security concerns, and financial literacy issues associated with cryptocurrency use. He stressed the need for a regulatory approach to harness crypto assets’ benefits while mitigating risks.
To protect investors and promote healthy digital asset market, Agama called for a clear regulatory framework alongside improved cybersecurity measures financial education initiatives.
In April, Nigerian President Bola Ahmed Tinubu appointed Agama as the new head of SEC. Following his appointment, SEC introduced an amendment aimed at regulating assets issuance platforms and custody providers.
As Nigeria is one of Africa’s largest recipients of remittances,
Agama’s emphasis on utilizing cryptocurrencies’ can benefit both individuals receiving money from abroad as well as those without access to traditional banking services.