The Securities and Exchange Commission (SEC) has disclosed that Nigerians traded more than $50 billion worth of cryptocurrency between July 2023 and June 2024, highlighting a rapid rise in digital asset activity outside the formal capital market space.

The SEC said the scale of transactions reflects the increasing sophistication and risk appetite of Nigerian investors who are choosing crypto over traditional investment channels.

Director-General of the SEC, Dr. Emomotimi Agama, made the revelation in a lead paper titled “Evaluating the Nigerian Capital Market Masterplan 2015–2025”, delivered at the annual conference of the Chartered Institute of Stockbrokers.

Agama raised alarm over the contrast between the booming crypto market and low participation in regulated investments. “While fewer than three million Nigerians invest in the capital market, more than 60 million engage daily in gambling activities, spending an estimated $5.5 million every day. This reveals a paradox — an appetite for risk clearly exists, but not the trust or access to channel that energy into productive investment,” he said.

He warned that fewer than four percent of Nigerian adults are active in the capital market — a trend he believes undermines long-term economic growth and capital formation.

Agama also drew a sharp comparison between Nigeria’s 30 percent market capitalization-to-GDP ratio and other emerging economies, citing South Africa’s 320 percent, Malaysia’s 123 percent, and India’s 92 percent. According to him, the gap signals a shallow market foundation and an urgent need to rebuild investor confidence while expanding financial inclusion.

Reflecting on the Capital Market Master Plan (CMMP) launched in 2015, he noted its goal was to transform the market into a hub for long-term financing, infrastructure development, and enterprise growth.

“Today, as we stand at the sunset of that ten-year plan, our task is not ceremonial; it is reflective and diagnostic. We must ask: what did we achieve, where did we fall short, and what lessons must anchor our next decade of reforms?” he stated.

Agama acknowledged that fewer than half of the 108 CMMP initiatives have been fully implemented. He attributed the shortfall to weak integration with national plans, inadequate tracking, and limited buy-in from key institutions.

While noting achievements such as Green Bonds, Sukuk, fintech integration, and non-interest finance, he pointed out that liquidity remains heavily concentrated in large-cap stocks including Airtel Africa, Dangote Cement, and MTN Nigeria.

According to him, “The market’s liquidity profile is still narrow and dependent on a few major players. The next decade must deliberately address this concentration and attract a more diverse range of issuers and investors.”

The SEC Director-General outlined six critical challenges shaping the next reform phase:

low retail participation, market concentration, falling foreign inflows, underutilized pension assets, untapped diaspora capital, and a growing infrastructure funding deficit.

He stressed that Nigeria’s $150 billion annual infrastructure deficit dwarfs capital market contributions, noting that only N1.5 trillion has been approved so far through public-private partnership bonds.

“This shows a misalignment between financial innovation and national priorities,” he said. “The capital market must evolve beyond securities trading to become a central pillar in financing the country’s infrastructure and industrial ambitions.”

Calling for a “reimagined SEC”, Agama said the regulator must operate as both a supervisor and an economic catalyst.

He concluded that the future of the Nigerian capital market must rest firmly on restored confidence and broader participation.

“Vision without execution is inertia — and reform without measurement is aspiration without accountability,” he declared.