Data Analysis: SEC Nigeria Confirms Over a Third of the Population Participate in Digital Assets

The Securities and Exchange Commission (SEC) Nigeria is taking significant strides in the digital asset space, announcing a collaboration with the Nigerian Exchange and Busha, as well as the Kenya School of Government, to launch a comprehensive crypto course. This move is part of a broader effort to establish a clear regulatory framework for cryptocurrencies in the country.

Under the new regulatory framework, crypto assets are defined as securities under Nigerian law. Virtual Asset Service Providers (VASPs) will be required to obtain licensing, and stringent custody and segregation standards will be enforced for customer protection. The framework also introduces tougher penalties for Ponzi operators and promoters, and mandates transparency and disclosures for digital asset offerings.

Dr. Emomotimi Agama, Director General of SEC Nigeria, emphasised the high adoption rate of cryptocurrencies in the country as a significant opportunity. According to government officials, over 33% of Nigeria's 220+ million population is actively engaged in the digital asset space, a figure that surpasses earlier surveys suggesting a 20% crypto user ratio.

The SEC's goal is to ensure sustainable growth of the crypto economy without being derailed by fraud. To this end, the Commission is pushing for multi-agency collaboration with the Central Bank of Nigeria, Economic and Financial Crimes Commission (EFCC), National Financial Intelligence Unit (NFIU), Police, and national security bodies to crack down on scams and strengthen oversight.

Chainalysis has confirmed a collaboration with SEC Nigeria, further underscoring the Commission's commitment to fostering a secure and transparent digital asset ecosystem. Notably, Nigeria ranks #2 worldwide in crypto adoption, with tens of billions of dollars in value flowing through its crypto economy each year.

However, the SEC faces the challenge of balancing innovation with investor protection in the country's crypto economy. Despite the risks associated with fraudulent crypto projects, Nigeria's youthful and tech-savvy population uses cryptocurrencies not just speculatively, but practically for payments, remittances, and savings against inflation. To date, Nigerians have lost over ₦1 trillion (~$625 million) to Ponzi schemes and fraudulent crypto projects.

In a bid to address these challenges, the SEC Nigeria is rolling out a clearer regulatory framework under the new Investment and Securities Act (ISA) 2025. While the Commission is open to tokenized assets, it maintains a stance against cryptocurrency directly. The head of the Nigerian Securities and Exchange Commission, identified as Lamido Yuguda, is spearheading these efforts to ensure a secure and thriving digital asset market in Nigeria.

In a recent report, 93% of people were found to be aware of cryptocurrency at least by name, indicating a growing understanding and acceptance of digital assets in the country. As the SEC continues to shape the regulatory landscape for cryptocurrencies in Nigeria, it is poised to play a crucial role in fostering a secure and sustainable digital asset market.

Data Analysis: SEC Nigeria Confirms Over a Third of the Population Participate in Digital Assets