West Africa Emerging As Global Hotspot For Virtual Asset Adoption – SEC

The director-general of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has said that West Africa, with its vibrant and youthful population, has become a global hotspot for virtual asset adoption.

Speaking at the West Africa Compliance Summit organised by GIABA in Praia, Cape Verde, Agama urged regulators across the sub-region to deploy Regulatory Technology (RegTech) and Supervisory Technology (SupTech) solutions to strengthen monitoring, detection, and reporting of suspicious activities.

He said those regulatory technologies were essential, given the explosive growth in virtual asset adoption across the region.

The summit’s theme was ‘Adapting and Thriving in a Complex and Evolving Compliance Landscape’.

Speaking on the growth of virtual assets in West Africa, he said, “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.

“In Nigeria alone, crypto transactions exceeded $56 billion last year. The naira’s volatility, Ghana’s cedi depreciation, and forex shortages have pushed citizens toward “crypto-dollarisation.”

He added that, “young professionals increasingly demand salaries in stablecoins, and businesses use platforms like Binance Pay for cross-border trade. With over 60 per cent of West Africa’s population under 25, mobile-first crypto solutions thrive. Today, Nigeria ranks as the third-largest crypto adopter globally, after India and Vietnam.”

The SEC Nigeria DG, however, warned that the growth has also attracted predators, stressing that high-profile scandals have wiped out millions in investor funds.

“DeFi ‘rug pulls’ continue 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.

“Artificial crashes, unregistered exchanges absconding with funds, and inadequate oversight have resulted in billions in losses. Regulation, therefore, is not optional but an imperative,” he stated.

Speaking on the Nigerian environment, Agama said, the journey has been one of hard lessons and eventual clarity, saying “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.

“The Investment and Securities Act 2025 fundamentally changed the landscape. 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 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. The SEC must license exchanges, wallets, and DeFi platforms.”

He said the West African subregion can draw many lessons from the Nigerian experience because financial crimes know no borders.

“We must harmonise 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.

“Nigeria intends 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,” he pointed out.