Nigeria's digital finance ecosystem recorded approximately $96 billion in cryptocurrency and other virtual asset transactions, according to Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC).

Agama disclosed this figure during a Citizens and Stakeholders Engagement Session in Abuja, emphasizing the substantial activity in the digital asset market necessitates stronger regulatory oversight.

The recently enacted Investment and Securities Act 2025 has reinforced the regulatory framework, granting the SEC enhanced powers to oversee digital assets and emerging financial technologies. This legislation also reaffirms the SEC as the apex regulator of the Nigerian capital market.

The Act includes provisions for monitoring systemic risks and aligning Nigeria’s market operations with global standards. Agama highlighted that the capital market has continued to support investments across key economic sectors.

In 2024, the commission approved new capital market issues worth approximately N3.68 trillion, encompassing both equity and fixed income instruments. The capital market also played a crucial role in strengthening the banking sector during recent recapitalisation efforts, with over 31 banks raising funds to meet new capital requirements.

The overall market capitalization has seen significant growth, rising from about N55 trillion in 2024 to roughly N127 trillion currently. Correspondingly, the capital market’s contribution to the Gross Domestic Product (GDP) has increased, with the market capitalization-to-GDP ratio climbing from approximately 13% to about 33%.

The SEC has intensified efforts to protect investors and maintain confidence in the market. Over 90 advisory notices have been issued, warning Nigerians about suspicious investment schemes and risky financial offers. The commission is also collaborating with the Nigeria Police Force to investigate and prosecute fraudulent investment operations.

Agama cautioned that many victims fall prey to unregistered platforms promising unrealistic returns, urging investors to verify SEC approval for any investment opportunity. The capital market has also supported infrastructure development through state government bond issuances, with safeguards like the Irrevocable Standing Payment Order (ISPO) ensuring repayment from states’ Federation Account allocations.

Looking ahead, the SEC plans to deepen the capital market, aiming to increase the market capitalization-to-GDP ratio from its current 30% towards levels seen in emerging markets like India, which stands at approximately 92%.

Raymond Omenka Omachi, Permanent Secretary of the Federal Ministry of Finance, addressed concerns regarding federal budget performance. He cited challenges in meeting the oil production benchmark of about 2.1 million barrels per day and fluctuations in global crude oil prices as factors affecting revenue.

The budget benchmark was set at $75 per barrel, but oil prices dropped below $60 per barrel at one point, impacting government revenue. Rising debt servicing obligations and increased salary commitments have also strained available funds.

Omachi stated that the government is implementing closer monitoring of revenue and expenditure, including weekly cash management meetings every Monday, to improve financial performance. He added that budget implementation is expected to improve once Nigeria returns to a single budget cycle, with plans to consolidate overlapping budgets for a unified national budget from 2026 onward.