Nigeria’s cryptocurrency market worth over $400m — SEC DG

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The Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, highlighted the potential benefits of cryptocurrencies in reducing remittance costs by up to 50%,. Despite these advantages, Agama acknowledged significant challenges, including concerns over illicit activities reported by the Economic and Financial Crimes Commission (EFCC). He also cited regulatory uncertainty, security threats, and financial literacy gaps as serious obstacles to the widespread adoption of cryptocurrencies in Nigeria.

Agama emphasized the need for a balanced regulatory approach to harness the opportunities presented by crypto assets while mitigating risks. Collaborative efforts among regulators, industry stakeholders, and the public are essential for developing effective regulations.

Chairman of the SEC, Mairiga Katuka, supported this view, urging for a course forward that aligns with President Bola Tinubu’s vision of making Nigeria a prime investment destination. Katuka stressed the importance of building a resilient capital market that anticipates future challenges and proactively seeks solutions.

Further supporting the need for financial innovation, the Vice President, represented by Deputy Chief of Staff Ibrahim Hassan Hedejia, and other officials, emphasized the importance of micro, small, and medium enterprises (MSMEs) in the Nigerian economy. They noted that MSMEs contribute 46% of GDP and account for 96% of businesses in Nigeria.

Efforts to ensure single-digit financing for MSMEs were highlighted, with ongoing partnerships with the African Union and other organizations aimed at providing affordable financing and loans. Dr. Monique Nsanzabaganwa of the African Union Commission announced a goal to unlock $100 billion for women and youth MSMEs by 2030, championing single-digit financing across Africa.

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