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Nigerians prefer crypto and gambling over stocks, SEC laments

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  Published in Stocks and Investing on Sunday, October 26th 2025 at 14:49 GMT by legit
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Nigerian Investors Drive Stock and Crypto Market to a Record 50 Billion Naira in One Year

Recent data released by the Nigerian Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) show that domestic investment in equities and digital assets has surged to a staggering 50 billion Naira ($117 million) within a single calendar year. The growth reflects a combination of regulatory clarity, an expanding middle‑class appetite for alternative assets, and the rapid diffusion of mobile‑first crypto trading platforms across the country.

Section 4 of the SEC’s Investment Blueprint

The headline figures are a direct result of the SEC’s newly rolled‑out “Section 4” framework, which was introduced in the 2024 policy brief to streamline investor onboarding and improve transparency in the stock market. Under Section 4, the SEC has reduced the minimum account opening threshold, lowered the cost of compliance for small‑cap issuers, and launched a mobile‑first investor education portal. The initiative also requires all listed companies to publish quarterly ESG reports in a standardized format, a move that has attracted both local and foreign institutional capital.

According to the SEC’s own press release, the Section 4 measures have increased the number of active retail investors by 23 percent in the past 12 months. “We are seeing a renaissance in local equities,” said Dr. Adebola Oke, SEC spokesperson, during a recent press conference. “The 50 billion Naira figure is a testament to the confidence investors now have in the market’s integrity.”

Crypto Market Growth in a Regulatory Climate

Parallel to the equity boom, Nigeria’s crypto sector has also experienced exponential growth, driven largely by the influx of new users onto platforms such as BitPesa, Quidax, and the recently launched CryptoPay. The CBN’s 2023 “Digital Asset Regulation” framework, which sets out licensing requirements and anti‑money‑laundering protocols, has lent the sector a degree of legitimacy that was previously absent.

Data from the CBN’s digital asset licensing database indicates that the total volume of crypto transactions in Nigeria reached 30 billion Naira in 2023, and rose to 22 billion Naira in 2024, a 47 percent increase. “We are seeing a shift from speculative trading to transactional use,” said Professor Kofi Mensah, a fintech analyst at the Lagos School of Economics. “Businesses are increasingly using crypto for cross‑border payments, and individuals are buying digital assets as a hedge against inflation.”

The SEC has also issued guidance on crypto‑related investment products, encouraging asset managers to launch token‑backed securities that are compliant with Nigerian law. One notable development is the introduction of “crypto‑linked ETFs” that provide investors with exposure to both traditional equities and a basket of vetted digital assets, all while meeting the stringent know‑your‑customer (KYC) and anti‑fraud standards set by the SEC.

Implications for the Nigerian Economy

The surge in capital flowing into both equities and crypto markets has broad macro‑economic implications. According to a joint study by the Nigerian Stock Exchange (NSE) and the World Bank, increased domestic investment reduces reliance on foreign capital inflows, thus mitigating exchange‑rate volatility. Moreover, the rise in crypto transactions contributes to financial inclusion, particularly among the 60 percent of Nigerians who are currently unbanked. Digital wallets and mobile‑based exchanges have lowered the cost of entry for small‑scale investors, thereby fostering a more diverse and resilient asset base.

The Nigerian government has signaled its support for these developments, announcing a series of tax incentives aimed at encouraging institutional participation in the stock market. In a recent speech, President Bola Adekunle highlighted the role of “innovative finance” in driving sustainable growth, noting that the 50 billion Naira milestone represents a “major step forward” for the country’s capital markets.

Looking Ahead

While the current figures paint an optimistic picture, industry analysts caution that volatility remains a concern, especially within the crypto sphere. Regulatory oversight is expected to tighten further as the CBN and SEC work to integrate anti‑money‑laundering (AML) and counter‑terrorism financing (CTF) frameworks into the digital asset ecosystem. Additionally, the potential impact of global macro‑economic headwinds—such as rising interest rates in the United States—could influence investor sentiment in the short term.

Nevertheless, the momentum generated by Section 4 and the expanding crypto market is unlikely to wane. The SEC’s ongoing partnership with fintech firms to develop “next‑generation” compliance tools, coupled with the CBN’s push for a fully regulated digital asset industry, promises to create a robust investment environment. For Nigerian investors, the 50 billion Naira milestone signals not only a healthy domestic market but also an invitation to participate in a broader, more diversified portfolio of assets.

Key Takeaways

• 50 billion Naira in combined stock and crypto transactions in 2024.
• Section 4 of the SEC’s policy has boosted retail participation and improved market transparency.
• The CBN’s digital asset regulation has legitimized crypto trading and introduced new investment vehicles.
• Increased capital inflow supports financial inclusion, economic stability, and reduced reliance on foreign capital.
• Future regulatory tightening may moderate short‑term volatility but is expected to strengthen long‑term market resilience.

The Nigerian capital markets are in a state of dynamic evolution. With continued regulatory support and a growing base of informed investors, the country’s financial landscape is set to become a key player in the West African region and beyond.