Nigeria's financial regulator has warned that citizens' heavy involvement in gambling and cryptocurrencies is diverting funds away from the capital markets, limiting resources for infrastructure development. Securities and Exchange Commission Director-General Emomotimi Agama highlighted stark disparities in investment participation. He noted significant daily gambling stakes and a surge in crypto transactions among the youth.
Emomotimi Agama, Director-General of Nigeria's Securities and Exchange Commission, issued a statement via email expressing concern over Nigerians' investment habits. He stated that the preference for plowing money into gambling and cryptocurrencies rather than the capital market is denying the nation funds needed to build key infrastructure.
Nigeria has nearly 240 million people, and more than a fourth of them are staking a combined $5.5 million daily in gambling. In contrast, fewer than three million people are investing in the capital market, Agama said. This imbalance underscores a broader trend where alternative investments overshadow traditional financial channels.
Agama also pointed to the growing appeal of cryptocurrencies among young people with access to digital platforms. Between July 2023 and June 2024, more than $50 billion worth of crypto transactions were conducted in the country. These figures illustrate how digital assets and gambling are capturing significant portions of disposable income, potentially at the expense of long-term economic growth through capital markets.
The regulator's comments come amid efforts to bolster Nigeria's financial ecosystem, where inflation and currency fluctuations add to investment challenges. Agama's statement aims to redirect public focus toward sustainable investing options that support national development.