The Securities and Exchange Commission (SEC) revealed that over $50 billion worth of cryptocurrency transactions flowed through Nigeria between July 2023 and June 2024. Director-General of the SEC, Dr Emomotimi Agama, said in a statement that the situation raised concerns over the low participation of citizens in the traditional capital market.
Agama noted that no fewer than 4% of the country’s adult population were active investors. He described the low participation rate as a major impediment to economic growth and capital formation.
Gambling outpaces capital market investment
Agama revealed that fewer than three million citizens invested in the capital market, while more than 60 million engaged daily in gambling activities. Nigerians spend an estimated $5.5 million every day on gambling.
“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.
This pattern highlights the rise of the iGaming industry as an outlet for financial risk-taking. Many young Nigerians view betting as a faster means of income compared to formal investment, reflecting broader financial distrust and accessibility challenges.
Nigeria’s cryptocurrency market continues to expand, reflecting deepening digital adoption and economic shifts. The market is projected to reach a revenue of US$2.4 billion in 2025 and grow at an annual rate of 3.46% to US$2.5 billion by 2026. Average revenue per user will stand at US$87.4 in 2025, with 28.69 million users expected by 2026. User penetration will rise from 11.66% in 2025 to 11.83% in 2026.
Market growth lags behind regional peers
The SEC chief lamented that Nigeria’s market capitalisation to Gross Domestic Product ratio stood at about 30%. This is far below South Africa’s 320%, Malaysia’s 123%, and India’s 92%.
He said the disparity underscored the urgent need to deepen financial inclusion and rebuild investors’ confidence. According to him, “Nigeria’s $150 billion annual infrastructure deficit far exceeds the market’s contribution, with only N1.5 trillion approved in Public Private Partnership bonds.” Agama explained that the situation “shows a misalignment between financial innovation and national priorities.”
Cryptocurrency and iGaming: parallel economies
The increased engagement in cryptocurrency and gambling shows that there’s an underlying hunger for alternative investment avenues. The two sectors mainly function outside the standard framework of regulation and offer hope for hefty returns to millions of investment-seekers. In Nigeria, digital players usually leverage digital currencies for transactions such as withdrawals and deposits on online gaming companies. The intersection of online gaming and cryptocurrencies indicates that online gaming needs regulation that accommodates digital currencies.
Although the United States leads globally with US$16.1 billion in projected revenue, Nigeria’s performance underscores its growing relevance in global crypto adoption. The nation’s youthful population, widespread mobile connectivity, and search for alternative financial solutions continue to drive participation, mirroring the same appetite for digital risk-taking seen in its thriving iGaming sector.
A call for balanced financial innovation
Agama urged for a “reimagined SEC” that acts as both regulator and enabler of private-sector-driven growth. He emphasised that innovation must align with Nigeria’s economic needs and help channel citizens’ appetite for risk into productive investments.
Industry observers say that integrating secure blockchain technologies and transparent gaming regulation could help formalise both sectors. A balanced approach could strengthen public trust and create sustainable pathways for digital finance and entertainment in Nigeria.
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