Nigeria’s Securities and Exchange Commission (SEC) has valued the country’s cryptocurrency industry at $400 million.

In a press conference Friday, SEC chief Emomotimi Agama predicted an increase in crypto trade volume in the next few years despite the country’s recent clampdown on exchanges.

“The country’s crypto market is estimated to be worth over $400 million, with a significant portion of the population involved in cryptocurrency trading and transactions,” Agama said.

Nigeria has a thriving cryptocurrency landscape, ranking 11th on the 2022 Global Crypto Adoption Index from crypto analytics firm Chainalysis.

The country jumped to second place on the index in 2023, despite an ongoing clampdown that saw the Central Bank of Nigeria prohibit banks in the country from facilitating crypto trading.

Per Agama, at least 33.4% of the country’s population own or use cryptocurrencies.

Crypto regulations in Nigeria

Nigerian authorities have struggled to implement a definite crypto regulatory framework to guide operators, especially after having accused cryptocurrency exchanges of facilitating illicit transactions and forex manipulation.

Agama insisted that the absence of proper regulation is hurting the country’s economy and is making operators and traders vulnerable to cyber threats.

“The lack of a comprehensive regulatory framework has created uncertainty, which can deter both investors and innovators,” he said.

“Cybersecurity threats, including hacking and fraud, pose significant risks. A substantial portion of the population lacks adequate financial literacy, making them vulnerable to scams and risky investments.”

Last week, Agama’s SEC gave cryptocurrency exchanges and digital asset traders 30 days to re-register their businesses—or risk facing enforcement actions.

​​The SEC said the new registration is aimed at amending its rules on digital assets issuance, offering platforms, exchanges, and custody in regards to virtual asset service providers (VASPs).