The Securities and Exchange Commission (SEC) has said over $50 billion worth of cryptocurrency transactions flowed through Nigeria between July 2023 and June 2024.
The Director-General of SEC, Dr Emomotimi Agama, said in a notice on Sunday that the situation raised concern over the low participation of citizens in the traditional capital market.
Mr Agama said no fewer than four per cent of the countryās adult population were active investors.
The director-general described the low participation rate as a major impediment to economic growth and capital formation.
He noted that, while fewer than three million citizens invested in the capital market, more than 60 million engaged daily in gambling activities, spending an estimated $5.5 million every day.
āThis reveals a paradox, an appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,ā he said.
Mr Agama lamented that Nigeriaās market capitalisation to Gross Domestic Product ratio stood at about 30 per cent, far below South Africaās 320 per cent, Malaysiaās 123 per cent, and Indiaās 92 per cent.
He said the disparity highlighted the urgent need to deepen financial inclusion and rebuild investorsā confidence.
āNigeriaās $150 billion annual infrastructure deficit far exceeds the marketās contribution, with only N1.5 trillion approved in Public Private Partnership bonds. This shows a misalignment between financial innovation and national priorities,ā he said.
The director-general called for a āreimagined SECā that served as both regulator and enabler of private-sector-driven growth. (NAN)
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