The Securities and Exchange Commission has expressed concern over Nigerians’ increasing shift from traditional capital market investments to cryptocurrency trading.

SEC Director-General Emomotimi Agama revealed that over $50 billion worth of cryptocurrency transactions were recorded in Nigeria between July 2023 and June 2024, highlighting a strong investor appetite for high-risk assets that has yet to reflect in the formal market.

“Over $50 bn worth of cryptocurrency transactions flowed through Nigeria between July 2023 and June 2024, underscoring the sophistication and risk tolerance of investors that the traditional market has yet to capture,” he said.

In his presentation titled “Evaluating the Nigerian Capital Market Masterplan 2015–2025” at the annual conference of the Chartered Institute of Stockbrokers, Agama disclosed that less than four per cent of Nigerian adults currently participate in the capital market.

He said, “There are concerns over the alarmingly low participation of Nigerians in the traditional capital market, revealing that fewer than four per cent of the country’s adult population are active investors.”

He identified the low participation rate as a significant barrier to economic growth and capital formation, noting that while fewer than three million Nigerians invest in the capital market, more than 60 million participate in daily gambling activities valued at about $5.5 million.

Agama also lamented that Nigeria’s market capitalisation-to-GDP ratio is roughly 30 per cent—well below South Africa’s 320 per cent, Malaysia’s 123 per cent, and India’s 92 per cent.

He urged for greater financial inclusion, enhanced investor confidence, and renewed reforms to draw more retail investors and position the capital market as a catalyst for sustainable economic transformation.