Nigeria's Securities and Exchange Commission (SEC) recently valued the country's cryptocurrency industry at over $400 million.
This information came from the Director General of the SEC, Emomotimi Agama, while speaking at the Association of Capital Market Scholars of Nigeria (ACMAN) Abuja 2024 Annual Conference.
According local reportsAgama stated that Nigeria is one of the leading countries in terms of virtual currency adoption. The country recorded transactions worth $56.7 billion between July 2022 and June 2023, reflecting a year-on-year growth rate of 9%, denoting increasing crypto activities within its domain.
This therefore means that the country's unbanked population (estimated at around 33.4%) can access financial services through cryptocurrencies via digital wallets.
Furthermore, it is believed that cryptocurrencies will help streamline cross-border payment systems, especially remittances from our migrants, which can reduce transfer costs by half.
However, these benefits outweigh some of the issues that Agama faces such as regulatory uncertainties, cyber risks and lack of financial literacy among Nigerians. He also highlighted the importance of developing a balanced regulatory framework to encourage innovation while protecting investors and consumers.
SEC Chairman Mairiga Katuka also addressed the conference and highlighted the opportunities that cryptocurrencies present for Nigeria's financial markets. Furthermore, he called for collaboration among stakeholders to develop a sustainable approach for the integration of cryptocurrencies into the country's financial system.
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