Nigeria's Cryptocurrency Transactions Surge to $96 Billion, SEC Tightens Oversight

Nigeria's rapid expansion into the world of cryptocurrencies has led to a significant surge in virtual asset transactions. According to the Securities and Exchange Commission (SEC), Nigeria's digital finance ecosystem recorded a staggering $96 billion in cryptocurrency and other virtual asset transactions, underscoring the growing need for stronger regulatory oversight.

The SEC has taken steps to strengthen its regulatory framework for digital assets, introducing provisions for monitoring systemic risks and aligning market operations with global standards. The Investment and Securities Act 2025 grants the commission powers to regulate digital assets and other financial technologies, reaffirming the SEC as the apex regulator of the Nigerian capital market.

The commission has also approved a significant amount of new capital market issues in 2024, covering both equity and fixed income instruments. The total market capitalisation increased from about N55 trillion in 2024 to N127 trillion, while the ratio of market capitalisation to gross domestic product rose from about 13 percent to roughly 33 percent.