Table of Contents
TL;DR,
- Nigeria’s crypto transaction volume soared past $50B, largely driven by P2P crypto trading as citizens seek alternatives to a volatile Naira and untrustworthy traditional markets.
- Nigerians have a high appetite for risk (in crypto and gambling) but not the trust to invest in formal capital markets, which lag behind peer nations
- The future hinges on smart regulation that can channel this crypto energy into productive national growth, moving from short-term speculation to patient investment.
Nigeria horded Africa’s crypto limelight in 2025, with statistics showcasing the region’s crypto transaction volume soaring past $50 billion. According to SEC Nigeria, it’s a radical shift from old to new, with most Nigerians preferring stablecoins and Bitcoin as better financial instruments.
However, it’s precisely because of this sudden surge that concerns have been raised. Dr. Emomotimi Agama, Director-General of SEC Nigeria, spoke out, citing that less than 4% of adults invest through formal channels, and fewer than three million Nigerians participate in capital markets; however, P2P crypto trading and gambling rates continue to break new ground.
The Paradox of Risk: Crypto vs. Traditional Investment
During the annual conference of the Chartered Institute of Stockbrokers, while presenting his evaluation of the Nigerian Capital Market Masterplan 2015-2025, SEC Director‑General Dr. Emomotimi Agama cited Nigerians’ questionable investment strategies.
As per research, Dr. Agama revealed how market capitalization stands at about 30% of GDP, far below South Africa’s 320%, Malaysia’s 123%, and India’s 92%. However, Nigeria’s crypto transaction volume surpassed $50 billion in a single year.
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The opinion over the days was unanimous, with many finally understanding some of the core issues of Nigeria’s financial dilemma. Unexpected gambling was a concern alongside crypto. Well over 60 million Nigerians engage daily in gambling activities, collectively staking an estimated $5.5 million every single day.
In Dr. Agama’s words:
“This reveals a paradox: an appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment.
Nigeria’s $150 billion annual infrastructure deficit far exceeds the market’s contribution, with only N1.5 trillion approved in public-private partnership bonds.
This shows a misalignment between financial innovation and national priorities.”
At this point it’s a behavioral pattern, with many opting for riskier investments for bigger profits. Despite education steadily improving, many novice traders often think Bitcoin is a get-rich-quick scheme. Additionally, Nigerians opt for stablecoins to avoid the Naira’s inflation.
The role of P2P crypto trading in Nigeria’s market
P2P crypto trading has taken root in Nigeria, with local and international startups offering viable alternatives to its regions. Economic pressures, including double-digit inflation, significant naira depreciation (nearly 70 percent since May 2023), and widespread poverty, have forced many citizens toward alternative financial strategies.
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According to Agama, the Gen Zs are crypto’s biggest advocates given its lucrative nature rather than traditional stocks burdened with bureaucracy. This very need also fueled many to focus on developing fintech solutions backed by global investors like Lisk and Base.
In Africa the main focus is on utility rather than value; hence, the majority of users often transact below $1000 with businesses and SMEs below $1 million. This provides a market for startups; however, scaling becomes the true mark of successful Web3 platforms.
Gambling, markets, and household cash flows
The scale of gambling has become a major concern throughout East and West Africa. Currently Nigeria’s market capitalization-to-GDP ratio, in contrast to peer economies, is a stark reminder that simply having access to a trillion-dollar economy doesn’t mean much with poor execution. Having only 30%, it translates to fundamental challenges in financial inclusion, investor confidence, and capital mobilization for national development.
High risk means high rewards, and other facts simply fuel this trend. For instance, when looking back at a previous finding, Nigeria houses Africa’s highest crypto developer ratio, yet the majority are unsatisfied with payment. In fact, most participants earn less than $200 monthly.
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What clear digital asset regulations could be prioritized?
Nigerian SEC regulations on crypto have entered a new phase. Since President Bola Tinubu enacted the new investments and securities legislations, digital assets are now within regulatory frameworks, with the SEC being the primary regulator.
Currently millions of citizens already participate in digital asset markets, and as witnessed before, prohibition won’t stall growth.
The Capital Market Masterplan review revealed that fewer than half of its 108 planned initiatives were fully achieved over the decade-long period. Limited alignment with national development plans, inadequate tracking metrics, and weak stakeholder ownership contributed to this shortfall.
Despite progress in areas like green bonds, sukuk issuance, fintech integration, and non-interest finance products, market liquidity remains concentrated among a handful of large-cap stocks such as Airtel Africa, Dangote Cement, and MTN Nigeria.
According to Dr. Agama, the SEC has attained new clarity with digital assets now a current finance. This new outlook addresses low retail participation, excessive market concentration, declining foreign investment flows, and untapped diaspora capital.
As Nigerian SEC regulations on crypto evolve, the regulator has signaled a “reimagined SEC” that acts as both watchdog and enabler of private‑sector‑led growth.
Where Nigeria goes next
Nigeria’s $50 billion crypto transaction volume is a wake-up call to its regulators and government. Gambling is a major concern, especially with Nigeria’s 60 million user base. However,proper digital asset regulation, credible investor protections, and easier access to productive instruments will determine whether the next wave of crypto transaction volume becomes a bridge to broader prosperity or remains a parallel track.
In Agama’s words:
“Our task goes beyond regulation. We must rebuild the market into one that earns trust, embraces innovation, and promotes patient investment rather than short-term speculation.”
