The potential of cryptocurrency to significantly benefit Nigeria’s unbanked population was emphasized by Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC) in Nigeria. According to local news media, Agama projected that Nigeria’s cryptocurrency market would reach $52. million by 2028 during the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria.
Agama noted that Nigeria’s cryptocurrency market is valued at over $400 million, with a substantial portion of the population in crypto trading and transactions. Approximately 33.4% of Nigerians own or use cryptocurrencies, presenting an opportunity to extend financial to the country’s over 38 million unbanked adults.
Highlighting the advantages of cryptocurrencies in providing financial services for those without traditional bank accounts, Agama remarked their accessibility: “Some people don’t have bank accounts, but they have wallets.”
In addition to this, Agama pointed out that cryptocurrencies could significantly reduce remittance costs and make it easier and cheaper for Nigerians in the diaspora to send money home using Bitcoin (
BTC
). He also noted Nigeria is one of Africa’s largest recipients of remittances.
However, Agama challenges associated with cryptocurrency use including regulatory uncertainty, security concerns, and financial literacy issues. He emphasized a balanced approach as necessary to harnessing crypto assets’ benefits while mitigating risks.
Agama on clear regulatory frameworks supported by improved cybersecurity measures and financial education as essential elements for investor protection and promoting a healthy digital asset market.