Emomotimi Agama, the Director General of SEC in Nigeria, has emphasized the potential of crypto to provide substantial benefits to the country’s unbanked population.
According to local news outlets, Agama predicted that Nigeria’s cryptocurrency market would reach $52.5 million by 2028 during the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria.
The cryptocurrency market in Nigeria is presently valued at more than $400 million, and a significant portion of the population is involved in crypto trading and transactions.
The SEC chief emphasized that approximately 33.4% of Nigerians own or use cryptocurrencies, which presents a distinctive opportunity to provide financial services to over 38 million unbanked adults.
Agama elucidated the benefits of cryptocurrencies in providing financial services, particularly for individuals who lack traditional bank accounts. He remarked, emphasizing the accessibility of cryptocurrencies, “Some individuals do not have bank accounts, but they have wallets.”
Agama also noted that cryptocurrencies could considerably reduce remittance costs, as Bitcoin transactions would make sending money home more accessible and cost-effective for Nigerians in the diaspora. He observed that Nigeria is one of Africa’s largest recipients of remittances.
SEC DG endorses regulations on crypto
Nevertheless, Agama recognized the obstacles integral to cryptocurrency use, such as regulatory ambiguity, security concerns, and financial literacy issues. He emphasized the necessity of a balanced regulatory approach to mitigate risks and capitalize on the advantages of crypto assets.
Agama underscored the necessity of a transparent regulatory framework, enhanced cybersecurity measures, and financial education to safeguard investors and foster a viable digital asset market.
President Bola Ahmed Tinubu of Nigeria appointed Agama as the new chief of the Securities and Exchange Commission (SEC) in April. Formerly, Agama served as the managing director of the Nigerian Capital Market Institute.
The SEC promptly amended the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.
This program is specifically tailored for virtual asset service providers and allows these organizations to comply with the new regulatory requirements.
