TL;DR,
- Crypto in Nigeria has reached a $400M market valuation with 33.4% adoption rate, as SEC Director Agama recognizes its potential to include 38 million unbanked adults.
- Nigeria’s SEC Director emphasizes the need for comprehensive crypto regulation framework while acknowledging digital assets’ role in facilitating cheaper cross-border transactions.
- President Tinubu’s support for digital assets and new SEC amendments signal Nigeria’s commitment to balancing crypto adoption with proper regulatory oversight for investor protection.
Crypto is a familiar concept in Nigeria, as the country has one of the highest adoption rates on the continent. Statista projects its digital asset market revenue to reach $32.6M by 2024, with an annual growth rate of 12.66%.
Emomotimo Agama, the Director General of the Securities and Exchange Commission, has publicly recognized the potential of crypto in Nigeria as a gateway to boost its financial inclusion rate and reach its country’s outstanding 38 million unbanked adults.
Crypto in Nigeria: A $400 Million Market Tailored for Financial Inclusion
Nigeria’s storm within the crypto industry could no longer remain unrecognized, as the Director General, Emomotimi Agama, noted its massive effects.
During the 2024 Annual Conference of the Association of Capital Markets Academics of Nigeria, Agama revealed the potential and projection of digital assets. He saw crypto remittance costs as a better and cheaper alternative for most Nigerians.
Emomotimo Agama, the Director General of the Securities and Exchange Commission.[Photo: ThinkBusinessAfrica]
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Despite the harsh ban on digital currencies and the complex nature of establishing crypto regulation, the SEC boss had to accept and embrace these facts. Approximately 33.4% of Nigerians own or use digital assets, representing an excellent opportunity to overhaul their financial inclusion rate.
According to the regulatory body, the country has over 38 million unbanked adults, representing an unprecedented opportunity for new forms of financial services.
Agama elaborated on the numerous advantages of low and affordable crypto remittance costs, particularly those without traditional bank accounts. He stated,
Some people don’t have bank accounts, but they have wallets.
Keep in mind that with the elevated growth of cryptocurrency, digital wallets in Nigeria have continued to grow and cater to the day-to-day needs of the ordinary citizen.
Bitcoin transactions are making life easier for a portion of the nation, especially those within the diaspora regions. Crypto in Nigeria has facilitated cross-border transactions, allowing numerous organizations, businesses, and individuals to transact with foreign entities at lower costs.
“We Just Need a Better Crypto Regulation Framework,” says Agama
A shared problem across many African nations is how the SEC rules on digital asset issuance, taxation and adoption. Agama has clarified that he recognizes the challenges posed by regulatory uncertainty, security concerns, and financial literacy issues.
Better remittance costs would be a game changer for the nation, but unfortunately, navigating the crypto policy jargon has proven quite a challenge for most.
Clear, comprehensive, and eco-friendly Nigerian crypto regulations must include improved cybersecurity measures and financial education. This will protect investors, promote a healthy digital asset market, and allow the economy to benefit equally from taxation.
Unfortunately, achieving this feat is easier said than done. After numerous trials, only South Africa, Mauritius and Seychelles have successfully created and implemented a crypto regulatory framework in Africa.
The framework needs to be completed, and it still leaves much to be desired. It emphasizes that despite the continent having the highest adoption rate, it still needs to work on finding a balance between regulation and adoption.
Facilitating Cross-Border Transactions at Lower Remittance Costs
Crypto in Nigeria has had a rocky journey with regulations. Although its recently lifted crypto ban showcased a ray of hope, the SEC has placed numerous limitations on what banks and financial institutions can do.
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Digital wallets in Nigeria have continued to thrive, but insecurity is still a significant issue affecting their adoption. As a result, numerous benefactors, investors, legal institutions, and organizations are constantly trying to create a future in which Nigeria will dominate the franchise.
President Bola Ahmed Tinubu has openly advocated for digital assets, citing their numerous benefits as a means of trade and a tool for financial inclusion.
In April, the President appointed Agama as the new head of the country’s SEC to change the perspective and approach to the region’s crypto policy. The results speak for themselves, with the Securities and Exchange Commission introducing an amendment to the initial Rules on Digital Asset Issuance, Offering Platforms, Exchange, and Custody.
According to Agama, this program is specifically designed for virtual asset services providers and a means to align such entities with regulatory bodies.
