Markets
Nigeria’s Crypto Market Valued at $400 Million
Nigeria’s Securities and Exchange Commission (SEC) recently valued the country’s cryptocurrency sector at over $400 million.
This information came from the Director General of the SEC, Emomotimi Agama, while he was speaking at the Abuja 2024 Annual Conference of the Association of Capital Market Academicians of Nigeria (ACMAN).
According to local reportsAgama stated that Nigeria is one of the leading countries in terms of virtual currency adoption. The country recorded $56.7 billion in transactions between July 2022 and June 2023, reflecting a YoY growth rate of 9%, which denotes growing crypto activities in its domain.
Therefore, this means that the country’s unbanked population (estimated to be around 33.4%) can access financial services through cryptocurrencies via digital wallets.
Furthermore, it is believed that cryptocurrencies will help speed up cross-border payment systems, especially our migrants’ remittances, which could reduce transfer costs by half.
However, these benefits outweigh some of the challenges Agama faces, such as regulatory uncertainty, cyber risks and insufficient financial literacy among Nigerians. He also stressed the importance of developing a balanced regulatory framework to foster innovation while protecting investors and consumers.
SEC Chairman Mairiga Katuka also addressed the conference, emphasizing the opportunities presented by cryptocurrencies for Nigeria’s financial markets. He further called for collaboration among stakeholders to develop a sustainable approach to the integration of cryptocurrencies into the country’s financial system.
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