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The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has sounded the alarm over the growing threat of fraud within the digital assets space, cautioning that such activities are eroding market integrity and weakening investor confidence.
Speaking in Abuja during an event commemorating African Union Anti-Corruption Day, themed “Understanding Virtual Assets and Investment Fraud,” Dr. Agama stressed that corruption remains a persistent impediment to Africa’s economic progress, social stability, and investment appeal.
“Digital innovation is reshaping financial ecosystems globally. However, it has also given rise to complex fraud schemes involving virtual assets, which exploit unsuspecting investors and compromise the integrity of our markets,” he stated.
Agama noted that fraud linked to cryptocurrencies and other blockchain-based investments is increasingly sophisticated, posing a direct threat to the credibility of Nigeria’s financial markets and diverting resources intended for sustainable development initiatives.
In response to these emerging risks, he outlined the SEC’s ongoing commitment to:
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Intensifying investor education to help the public detect and avoid fraudulent schemes,
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Modernizing regulatory frameworks to keep pace with rapid technological advancements in virtual assets, and
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Strengthening cross-border cooperation to counter corruption and illicit financial flows in the digital economy.
He further highlighted that the Investment and Securities Act (ISA) 2025 includes strategic provisions for regulating digital assets such as cryptocurrencies, digital tokens, and other blockchain-based instruments. Under the new legislation, the SEC is designated as the principal regulatory authority for all virtual assets classified as securities or investment products.
Dr. Agama’s remarks underscore the urgent need for regulatory vigilance and multi-stakeholder collaboration as Nigeria navigates the evolving landscape of digital finance.
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