According to Emomotimi Agama, Director-General of the Securities and Exchange Commission, transactions involving cryptocurrencies and virtual assets have totaled approximately $96 billion in Nigeria’s digital financial ecosystem. Agama revealed this on Monday at a Citizens and Stakeholders’ Engagement Session hosted by the Federal Ministry of Finance in Abuja. He pointed out that because of the volume of transactions in the digital asset market, authorities must properly oversee the industry. He claims that the Investment and Securities Act 2025, which gives the commission the authority to supervise digital assets and other cutting-edge financial technology, enhanced the sector’s regulatory structure.He clarified that the new law had mechanisms to monitor systemic risks and bring Nigeria’s market operations into compliance with international norms, while also reaffirming the SEC as the capital market’s supreme regulator. overlay-clevercloseLogo Agama noted that the commission approved N3.68 trillion worth of new capital market issuance in 2024, including stocks and fixed income instruments, and stated that the Nigerian capital market has also continued to encourage investment activity across the economy.More than 31 banks raised money through the capital market to meet new capital requirements during the most recent recapitalization exercise, he continued, adding that the market was crucial in bolstering the banking industry. According to the SEC Director-General, the market’s performance has greatly improved in recent years, with its overall market capitalization increasing from N55 trillion in 2024 to roughly N127 trillion at now. Additionally, he pointed out that the market capitalization-to-GDP ratio has risen from around 13% to roughly 33%, indicating an increase in the capital market’s economic contribution.He claims that the commission has taken a number of actions to improve investor safety and preserve market trust. He revealed that the authority has sent out more than 90 advisory notifications alerting Nigerians to dubious financial offerings and investment schemes. According to Agama, the commission has also stepped up its efforts to combat Ponzi schemes and other fraudulent investment schemes, closely collaborating with the Nigeria Police Force to look into and prosecute violators. He emphasized that investors should always confirm whether an investment opportunity is permitted by the SEC, cautioning that many victims of such schemes frequently participate on unregistered platforms that promise unrealistic returns.The head of the SEC stated that state governments’ bond issuance has helped the nation’s infrastructure development. He clarified that subnational bonds issued in the capital market have been used to finance a number of public projects, such as stadiums, marketplaces, and other infrastructure. He claims that Nigeria’s Irrevocable Standing Payment Order (ISPO) system, which permits loan repayments to be taken directly from state allocations from the Federation Account, protects investors in state bonds.According to Agama, the commission has also created an Office of Municipal Fund Development to assist state and local governments in obtaining capital market funding for grassroots development initiatives. In order to alleviate Nigeria’s housing shortage, he said, the SEC backed the establishment of the Mortgage Refinancing and Infrastructure Fund (MREIF), which offers long-term finance that enables Nigerians to get mortgages at single-digit interest rates. In the future, he stated that the commission is attempting to expand the market by increasing the capital market capitalization-to-GDP ratio from roughly 30% to levels observed in developing nations like India, where it is approximately 92%.Concerns regarding the federal budget’s performance were also discussed by the Permanent Secretary of the Federal Ministry of Finance, who clarified that a number of circumstances had impacted its execution. According to him, Nigeria has struggled to achieve the standard for daily oil output of roughly 2.1 million barrels, and revenue has also been impacted by changes in the price of oil globally. The Permanent Secretary also stated that although oil prices eventually dropped below $60 per barrel, lowering anticipated government revenue, the budget benchmark was established at $75 per barrel.He pointed out that pressure on available cash has also come from growing salary responsibilities and debt servicing requirements. He claims that the administration is examining revenue and expenditures on a regular basis in an effort to rectify the situation. According to him, the ministry now reviews government finances and looks for methods to improve revenue performance at weekly cash management meetings on Mondays. The Permanent Secretary also stated that measures are in place to eliminate overlapping budgets so that Nigeria will run a single national budget starting in 2026. The government anticipates improvements once Nigeria resumes operating a single budget cycle.
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