- Transaction Volume:
- Between July 2023 and June 2024, over $50 billion worth of cryptocurrency transactions were recorded in Nigeria, according to the Securities and Exchange Commission (SEC).
- Low Traditional Market Participation:
- Only about 4% of Nigeria’s adult population are active investors in the traditional capital market.
- Fewer than three million citizens participate in the stock market, compared to over 60 million engaging daily in gambling, spending around $5.5 million each day.
- Economic Implications:
- The low capital market participation is a barrier to economic growth and capital formation.
- Nigeria’s market capitalization to GDP ratio is 30%, far below South Africa (320%), Malaysia (123%), and India (92%).
- The country faces a $150 billion annual infrastructure deficit, while only N1.5 trillion has been approved in PPP bonds.
- SEC’s Perspective:
- The high cryptocurrency activity shows a strong appetite for risk but insufficient trust or access to productive investment channels.
- Dr Emomotimi Agama, SEC Director-General, called for a reimagined SEC that not only regulates but also enables private-sector-driven growth and financial inclusion.
- Key Takeaway:
- Nigeria’s citizens are active in financial innovation like crypto, but this participation is misaligned with national development priorities, highlighting the need for better investor education, access, and confidence-building in the formal capital market.
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