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- Nigeria’s crypto transactions hit $96B, showing growth and raising oversight needs.
- SEC gains new powers under the 2025 law to regulate digital assets and monitor risks.
- Rising crypto use brings fraud risks as regulators warn investors and boost enforcement.
Nigeria’s crypto and virtual asset transactions were valued at about $96 billion. This indicates a growth trend in the country’s financial sector. The country is the largest economy in Africa. The figure indicates an increase in the adoption of crypto and the need for investor protection.
The Securities and Exchange Commission Nigeria Director-General, Mr. Emomotimi Agama, disclosed this figure. The director-general made the disclosure during a public engagement session organized by the Federal Ministry of Finance in Abuja, according to a local report.
Agama said that this volume calls for better supervision in this sector. He noted that clear rules are required for the protection of investors and for financial stability. Regulators are taking steps to address these concerns.
New Regulatory Framework Targets Crypto and Market Risks
The Investment and Securities Act 2025 has expanded the authority of the SEC. The law gives the regulator clear power to oversee digital assets and financial technologies. This marks a formal step toward structured crypto regulation.
The government said the law brings the country’s capital market in line with international best practices. The law also helps the government identify risks associated with the increasing use of cryptocurrency. The SEC is the main regulator of the capital market in Nigeria.
The country’s capital market also expanded. The SEC approved capital issues of trillions of naira in 2024. These included both equities and debt securities.
More than 30 banks raised funds during a recent recapitalization drive. This reflects strong activity in the financial system. It also shows increased reliance on capital markets for funding.
Also Read: Crypto Investment Products See $1.06B Inflows as Bitcoin Strengthens Safe-Haven Appeal
Market Growth Raises Risk as Crypto Fraud Cases Increase
Market capitalization has increased compared to gross domestic product. This shows that more people are involved in financial markets. However, it also raises exposure to market risks.
The authorities have noted a rise in cases of fraud in digital finance. The SEC has issued warnings about unregistered digital finance schemes that promise high returns to investors. These schemes mainly target retail investors.
The regulators are working with the Nigeria Police Force in investigating cases of fraud in digital finance. They seek to identify and prosecute such operations. There have been warnings to investors to be cautious and investigate before investing.
Nigeria is one of the most active crypto markets in the world. Currency and mobile use drive its adoption. Regulators now face the task of balancing innovation with user protection.
Also Read: Solana Expands Global Finance Role with Stablecoin Insurance Payments and Tokenized Equities
