Digital Assets: Nigeria enhances regulation of $96bn crypto market to protect investors

*Emomotimi Agama, Director-General of Nigeria’s Securities and Exchange Commission, discloses the Capital market regulator has issued over 90 advisory notices, warning Nigerians against unregistered or fraudulent investment schemes, and collaborated with the Police to investigate and prosecute offenders

Isola Moses | ConsumerConnect

Nigeria’s Securities and Exchange Commission (SEC) has said rapid growth of cryptocurrency and digital assets has prompted regulators to strengthen oversight to protect investors and ensure transparency.

ConsumerConnect gathered Emomotimi Agama, Director-General of SEC, stated this while speaking during a Citizens and Stakeholders Engagement Session, which the Federal Ministry of Finance, organised and held in Abuja, FCT.

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Agama said that $96 billion in cryptocurrency and virtual asset transactions were recorded 2025, underscoring the urgent need for regulation.

He also stated: “This volume of activity makes it essential that we protect investors and build confidence in the market.”

The Director-General of SEC explained the recently enacted Investment and Securities Act 2025 provides the SEC with enhanced powers to regulate digital assets, strengthen systemic risk management, and align Nigeria’s market operations with global standards.

According to him, the law confirms the SEC as the apex regulator of the capital market in Nigeria.

The West African country’s Capital market has continued to support investment across the economy, approving N3.68 trillion in new capital market issues 2024, including both equities and fixed income instruments, stated he.

Agama emphasised the Capital market has also played a key role in strengthening banks during recapitalisation exercises, enabling over 31 banks to raise funds to meet capital requirements.

He said the market’s total capitalisation rose from N55 trillion in 2024 to about N127 trillion currently, while the market capitalisation-to-GDP ratio increased from 13 percent to roughly 33 percent, reflecting growing confidence and activity.

The SEC Chief disclosed the Commission had issued over 90 advisory notices warning Nigerians about unregistered or fraudulent investment schemes and has intensified collaboration with the Nigeria Police Force to investigate and prosecute offenders.

He equally discussed the difference between investors, who put money into approved platforms, and victims, who fall prey to unregulated schemes promising unrealistic returns.

Agama related that SEC supported infrastructure and development funding through state bond issuances, with safeguards like the Irrevocable Standing                               Payment Order (ISPO) ensuring repayment directly from states’ Federation Account allocations.

Besides, the Commission has launched the Office of Municipal Fund Development and supported the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to provide long-term funding for housing and other critical projects.

The Commission plans to deepen the market further, aiming to raise the capital market capitalisation-to-GDP ratio from 30 percent towards levels seen in emerging economies like India, where the ratio is 92 percent, Agama stated.

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