The Director-General of the Securities and Exchange Commission Nigeria, Emomotimi Agama, has expressed concern over the rising tide of cryptocurrency-related financial crimes across West Africa.
He warned that terror groups and fraudulent networks are exploiting regulatory loopholes in the region.
Speaking at the West Africa Compliance Summit hosted by GIABA in Praia, Cape Verde, Agama emphasized the need for coordinated virtual asset regulation and intelligence-sharing across ECOWAS member states.
“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 said.
Citing data presented at the summit, Agama revealed that GIABA tracked $2.1 billion in suspicious crypto-related transactions across West Africa in 2024. He highlighted that “DeFi ‘rug pulls’ continue to defraud unsuspecting users,” and added, “terror groups exploit privacy coins to evade detection.”
He also warned of the growing risks posed by artificial market crashes, unregistered exchanges disappearing with investor funds, and weak enforcement measures, which collectively expose the region to systemic threats. “Regulation, therefore, is not optional but an imperative,” he stated.
Agama described West Africa as a rapidly growing market for digital assets, driven by currency instability and costly remittance fees.
“Over $20 billion in remittances flowed into West Africa in 2024, yet traditional channels charged up to 10 per cent in fees. Cryptocurrencies, particularly stablecoins like USDT and USDC, now offer faster, cheaper alternatives,” he said.
He noted that in Nigeria alone, crypto transactions reached $56 billion in 2024.
“The naira’s volatility, Ghana’s cedi depreciation, and forex shortages have pushed citizens toward ‘crypto-dollarisation.’ Young professionals increasingly demand salaries in stablecoins, and businesses use platforms like Binance Pay for cross-border trade,” he added.
Agama also pointed out that more than 60 percent of the West African population is under 25, with mobile-first crypto platforms seeing significant traction.
“Today, Nigeria ranks as the third-largest crypto adopter globally, after India and Vietnam,” he stated.
Reflecting on Nigeria’s evolving regulatory stance, Agama acknowledged previous policy missteps.
“In 2021, the Central Bank banned banks from servicing crypto firms, pushing activity underground. In 2022, the SEC classified crypto as securities but lacked sufficient enforcement,” he said.
He explained that the Investment and Securities Act (ISA) 2025 has since brought clarity.
“Cryptocurrencies, stablecoins, utility tokens, and NFTs are now formally recognised digital assets as seen in Section 355(4) and the Second Schedule, Part I of the ISA 2025,” he said. “Exchanges, wallets, and DeFi platforms must be licensed by the SEC.”
To improve oversight and reduce illicit financial flows, Agama called for advanced technological tools.
“These regulatory technologies are essential, given the explosive growth we’re witnessing in virtual asset adoption across the region,” he said, advocating for Regulatory Technology (RegTech) and Supervisory Technology (SupTech) across all West African jurisdictions.
He disclosed Nigeria’s plan to introduce AI-powered blockchain surveillance tools for improved transaction tracking. He also referenced the recent collapse of the CBEX Ponzi scheme that defrauded thousands, calling it a stark reminder of ongoing threats.
“The SEC has intensified its Ponzi Awareness Campaign, already conducted across key locations in Abuja and Lagos, with plans to extend to other states nationwide,” he noted.
Agama concluded by underscoring the need for proactive and balanced regulation.
“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.”
