SEC Urges Stronger Crypto Regulation Amidst West Africa’s Digital Asset Boom
By Patience Ikpeme
Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC Nigeria), has revealed that West Africa saw over $20 billion in remittances in 2024.
However, he noted that traditional channels charged up to 10% in fees, while cryptocurrencies, particularly stablecoins like USDT and USDC, are now offering faster and more affordable alternatives.
Speaking at the West Africa Compliance Summit, organized by GIABA in Praia, Cape Verde, Dr. Agama stated that West Africa, with its large and young population, has become a significant hub for virtual asset adoption globally.
He encouraged regulators across the sub-region to implement Regulatory Technology (RegTech) and Supervisory Technology (SupTech) solutions to enhance the monitoring, detection, and reporting of suspicious activities. “These regulatory technologies are essential, given the explosive growth we’re witnessing in virtual asset adoption across the region,” he said.
The summit’s discussions centered on the theme: “Adapting and Thriving in a Complex and Evolving Compliance Landscape.”
Discussing the rise of virtual assets in West Africa, Dr. Agama reiterated that “Over $20 billion in remittances flowed into West Africa in 2024, yet traditional channels charged up to 10% in fees. Cryptocurrencies, particularly stablecoins like USDT and USDC, now offer faster, cheaper alternatives.”
He also shared that in Nigeria alone, crypto transactions surpassed $56 billion last year. The volatility of the naira, depreciation of Ghana’s cedi, and foreign exchange shortages have driven citizens toward “crypto-dollarization.” He added that young professionals increasingly ask for salaries in stablecoins, and businesses are utilizing platforms like Binance Pay for cross-border trade.
With more than 60% of West Africa’s population under 25, mobile-first crypto solutions are flourishing. Dr. Agama further noted that Nigeria currently ranks as the third-largest crypto adopter globally, following India and Vietnam.
However, the SEC Nigeria DG cautioned that this growth has also attracted malicious actors, citing high-profile scandals that have resulted in millions in investor losses.
He said, “DeFi ‘rug pulls’ continues to defraud unsuspecting users. GIABA reported $2.1 billion in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection.” Agama also listed artificial crashes, unregistered exchanges absconding with funds, and inadequate oversight as factors contributing to billions in losses, concluding that “Regulation, therefore, is not optional but an imperative.”
Speaking about Nigeria’s experience, Dr. Agama described the journey as one of challenging lessons and eventual clarity. He explained that in 2021, the Central Bank banned banks from servicing crypto firms, which pushed activity underground. In 2022, the SEC categorized crypto as securities but lacked sufficient enforcement capabilities. He continued that the Investment and Securities Act 2025 fundamentally altered the landscape.
“Cryptocurrencies, stablecoins, utility tokens, and NFTs are now formally recognized digital assets as seen in Section 355(4) and the Second Schedule, Part I of the Investments and Securities Act (ISA) 2025, which states that Investments include: Virtual assets, digital assets, and other distributed ledger technology (DLT) offers, tokens and products. Exchanges, wallets, and DeFi platforms must be licensed by the SEC.”
Dr. Agama proposed that the West African sub-region can gain valuable insights from Nigeria’s experience, as financial crimes do not respect borders. “We must harmonize our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors. A trader banned in Nigeria simply relocates to Ghana.
ECOWAS must adopt a Unified VASP Licensing System,” he urged. He also mentioned Nigeria’s plan to deploy AI surveillance tools for blockchain analytics to trace illicit activity. “While we encourage innovation, we must ensure that emerging technologies like cryptocurrencies and digital assets operate within a framework that safeguards market integrity and protects consumers,” Dr. Agama stated.
He concluded by noting that SEC Nigeria’s newly formed Fintech and Innovation Department regularly engages with industry leaders to ensure policies remain relevant and practical. In addition to the recent collapse of the popular CBEX Ponzi scheme, which defrauded thousands of unsuspecting investors, the SEC has intensified its Ponzi Awareness Campaign, already conducted in key locations in Abuja and Lagos, with plans for nationwide expansion.
