Nigeria’s SEC Boss Says Crypto Can Aid 38M Unbanked

Emomotimi Agama observed that cryptocurrencies such as Bitcoin can significantly reduce remittance costs, simplifying and reducing the cost of money transfers for Nigerians living abroad

Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC) in Nigeria, has emphasized the potential of cryptocurrency to provide substantial benefits to the country’s unbanked population.

Agama predicted that Nigeria’s cryptocurrency market would reach $52.5 million by 2028 at the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria, as reported by local news media.

The volume of transactions and the adoption of cryptocurrency
According to Agama, 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, with Bitcoin BTC transactions totaling $61,613, making sending money home easier and more cost-effective for Nigerians in the diaspora. He observed that Nigeria is one of Africa’s largest recipients of remittances.

The SEC DG endorses transparent regulations regarding cryptocurrency.
Nevertheless, Agama also recognized the obstacles 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.

Agama was appointed as the new chairman of the Nigerian Securities and Exchange Commission (SEC) by President Bola Ahmed Tinubu 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.