[Nigeria’s SEC Director General says cryptocurrencies can help 38 million people without bank accounts]
Nigeria’s Securities and Exchange Commission (SEC) Director General Emomotimi Agama has highlighted the potential benefits of cryptocurrencies for the country’s unbanked population. Speaking at the 2024 annual conference of the Nigerian Association of Capital Market Scholars, Agama predicted that Nigeria’s cryptocurrency market will reach $52.5 million by 2028.
Agama noted that Nigeria’s cryptocurrency market is currently worth over $400 million, with 33.4% of Nigerians owning or using cryptocurrencies, providing a unique opportunity to provide financial services to the country’s more than 38 million unbanked adults.
He emphasized that cryptocurrencies have advantages in providing financial services, especially to those who do not have traditional bank accounts. “There are people who don’t have bank accounts, but they have wallets,” which highlights the accessibility of cryptocurrencies. Additionally, cryptocurrencies can significantly reduce the cost of remittances, making it easier and cheaper for Nigeria’s diaspora to send money back home. Nigeria is one of the largest recipients of remittances in Africa.
However, Agama also acknowledged the challenges of using cryptocurrencies, including regulatory uncertainty, security concerns and financial literacy issues. He stressed the need for a balanced regulatory approach that leverages the benefits of crypto-assets while mitigating risks. He noted the need for a clear regulatory framework, improved cybersecurity measures and financial education to protect investors and promote a healthy digital asset market.
In April, Nigeria’s President Bola Ahmed Tinubu appointed Agama as the new head of the country’s SEC. Agama was the Managing Director of the Capital Markets Institute of Nigeria. Subsequently, the SEC revised the initial rules for digital asset issuance, platform provision, trading and custody, providing a path for virtual asset service providers to comply with new regulatory requirements.
