Emomotimi Agama, the Director General of Nigeria’s Securities and Exchange Commission (SEC), has emphasized the significant benefits that cryptocurrency could bring to the country’s unbanked population. At the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN), Agama discussed how cryptocurrencies like Bitcoin can lower remittance costs, making it easier and cheaper for Nigerians abroad to send money home.
Growth Projections for Nigeria’s Crypto Market
Agama projected that Nigeria’s cryptocurrency market, currently valued at over $400 million, could reach $52.5 million by 2028. This growth is driven by a substantial portion of the population engaged in crypto trading and transactions, with approximately 33.4% of Nigerians owning or using cryptocurrencies. This widespread adoption presents a unique opportunity to extend financial services to over 38 million unbanked adults in the country.
Advantages of Crypto Adoption
Agama highlighted the accessibility of cryptocurrencies for those without traditional bank accounts, stating, “Some people don’t have bank accounts, but they have wallets.” He pointed out that cryptocurrencies could significantly reduce remittance costs, benefiting Nigerians in the diaspora and making money transfers home more affordable. Nigeria is one of Africa’s largest recipients of remittances, making this a crucial benefit.
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Regulatory Challenges and the Need for Clear Guidelines
Despite the advantages, Agama acknowledged the challenges associated with cryptocurrency use, including regulatory uncertainty, security concerns, and financial literacy issues. He called for a balanced regulatory approach to harness the benefits of crypto assets while mitigating risks. Emphasizing the need for clear regulatory frameworks, improved cybersecurity measures, and financial education, Agama stressed the importance of protecting investors and promoting a healthy digital asset market.
Recent Developments in Nigeria’s Crypto Regulations
In April, Nigerian President Bola Ahmed Tinubu appointed Emomotimi Agama as the new chair of the SEC. Agama, previously the managing director of the Nigerian Capital Market Institute (NCMI), has been proactive in shaping the country’s crypto regulations. Soon after his appointment, the SEC introduced an amendment to the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody. This program is specifically designed for virtual assets service providers (VASPs) and offers a path for these entities to align with new regulatory requirements.
