Nigeria’s digital finance ecosystem recorded about $96bn in cryptocurrency and other virtual asset transactions, the Director-General of the Securities and Exchange Commission, Emomotimi Agama, has disclosed.

Agama revealed this during a Citizens and Stakeholders Engagement Session organised by the Federal Ministry of Finance in Abuja on Monday, stressing that the scale of activity in the digital asset market makes it necessary for regulators to place the sector under stronger oversight.

“As we speak today, it is a known fact from research and statistics that the virtual asset service providers and indeed the digital space, cryptocurrency operation is within the range of $96bn in transaction flow in Nigeria, and that is important for us to manage,” he said.

According to him, the regulatory framework governing the space has been reinforced with the enactment of the Investment and Securities Act 2025, which gives the commission powers to regulate digital assets and other emerging financial technologies.

He explained that the legislation also reaffirmed the SEC as the apex regulator of the Nigerian capital market while introducing provisions aimed at monitoring systemic risks and aligning the country’s market operations with global standards.

Agama stated that the capital market has continued to support investment across key sectors of the economy, noting that the commission approved about N3.68tn worth of new capital market issues in 2024, covering both equity and fixed income instruments.

He added that the market also played a major role in strengthening the banking sector during the recent recapitalisation exercise, with more than 31 banks raising funds through the capital market to meet new capital requirements.

The SEC boss noted that the overall performance of the market has improved significantly in recent years, with total market capitalisation rising from about N55tn in 2024 to roughly N127tn currently.

He further stated that the capital market’s contribution to the economy has increased, as the ratio of market capitalisation to gross domestic product rose from about 13 per cent to roughly 33 per cent.

Agama said the commission has also intensified efforts to strengthen investor protection and sustain confidence in the market. He disclosed that the SEC had issued more than 90 advisory notices warning Nigerians about suspicious investment schemes and risky financial offers.

According to him, the regulator has also stepped up its crackdown on fraudulent investment operations, including Ponzi schemes, while working with the Nigeria Police Force to investigate and prosecute offenders.

He warned that many victims of such schemes often invest through unregistered platforms promising unrealistic returns, advising investors to verify whether any investment opportunity has been approved by the SEC.

The SEC Director-General also noted that the capital market has helped support infrastructure development through bond issuances by state governments. He explained that several public projects, including markets, stadiums, and other infrastructure, have been financed through subnational bonds raised in the capital market.

Agama added that investors in state bonds are protected through the Irrevocable Standing Payment Order system, which allows repayments to be deducted directly from states’ allocations from the Federation Account.

He disclosed that the commission has established an Office of Municipal Fund Development to assist state and local governments in accessing capital market funding for development projects at the grassroots level.

Agama also said the SEC supported the launch of the Mortgage Refinancing and Infrastructure Fund to help address Nigeria’s housing deficit by providing long-term funding that enables Nigerians to obtain mortgages at single-digit interest rates.

Looking ahead, he said the commission plans to deepen the capital market by increasing the market capitalisation-to-GDP ratio from about 30 per cent towards levels seen in emerging markets such as India, where the ratio stands at about 92 per cent.

Also speaking at the session, the Permanent Secretary of the Federal Ministry of Finance addressed concerns about the implementation of the federal budget.

He explained that several factors have affected budget performance, including Nigeria’s difficulty meeting its oil production benchmark of about 2.1 million barrels per day and fluctuations in global crude oil prices.

According to him, the budget benchmark was set at $75 per barrel, but oil prices at some point dropped below $60 per barrel, reducing government revenue. He added that rising debt servicing obligations and increased salary commitments have also placed pressure on available funds.

The Permanent Secretary said the government is taking steps to address the situation through closer monitoring of revenue and expenditure. He disclosed that the ministry now holds weekly cash management meetings every Monday to review government finances and identify measures to improve revenue performance.

He added that budget implementation is expected to improve once Nigeria returns to operating a single budget cycle, noting that efforts are underway to collapse overlapping budgets so that the country will run only one national budget from 2026 onward.

Transcorp Energy Limited has emerged as the successful bidder for selected lots in the Federal Capital Territory under the World Bank–supported Utility Enabled Projects coordinated by the Rural Electrification Agency.

According to a statement on Monday, Transcorp Energy, the integrated energy development and services subsidiary of Transnational Corporation Plc, will deploy renewable energy solutions through interconnected mini-grids designed to integrate with existing distribution networks and deliver reliable electricity to underserved communities across Abuja, the Federal Capital Territory of Nigeria.

The initiative forms part of REA’s broader strategy to accelerate sustainable energy access through innovative public–private sector collaboration.

The Utility Enabled Projects programme, supported by the World Bank, is designed to catalyse private sector participation in delivering decentralised renewable energy solutions that complement the national grid, improve reliability of supply, and expand electricity access for businesses and households.

Speaking on the development, the Managing Director/Chief Executive Officer of Transcorp Energy, Chris Ezeafulukwe, said, “This renewable energy project marks a significant milestone for Transcorp Energy as we continue to expand access to clean and reliable energy across Nigeria. It demonstrates our commitment to driving renewable energy growth while supporting economic development and environmental sustainability.

“Through this initiative and in collaboration with our consortium partners, we are confident that we will deliver impactful energy solutions that strengthen local economies and improve livelihoods.”

In his remarks, the Managing Director/Chief Executive Officer of the Rural Electrification Agency, Dr Abba Aliyu, congratulated Transcorp Energy on its successful bid and reaffirmed the agency’s commitment to enabling credible private sector participation in Nigeria’s electrification drive.

“The Utility Enabled Projects are a critical component of REA’s strategy to empower capable private sector developers to deliver sustainable electricity solutions at scale.

“Transcorp Energy’s emergence as a successful bidder reflects the strength of this programme in attracting strong partners who share our commitment to accelerating Nigeria’s electrification and energy transition goals through innovative solutions such as interconnected mini-grids,” Aliyu stated.

The statement added that the deployment of interconnected mini-grids in the FCT will support Nigeria’s broader efforts to modernise its power sector by integrating renewable energy systems with existing distribution infrastructure, reducing reliance on expensive self-generation, lowering energy costs for consumers, and improving power reliability.

Transcorp Energy said it remains committed to investing in sustainable energy solutions and building strategic partnerships that expand access to electricity while contributing to Nigeria’s socio-economic development.

Cash held outside Nigeria’s banking system fell by N197.68bn in one month to N5.21tn in January 2026, even as the amount of money circulating in the economy remained broadly flat, and bank reserves dropped sharply, according to the latest Money and Credit Statistics released by the Central Bank of Nigeria.

The figures showed that currency outside banks declined from N5.41tn in December 2025 to N5.21tn in January 2026, representing a month-on-month drop of N197.68bn. This came as total currency in circulation slipped marginally by N1.74bn to N5.731tn in January 2026 from N5.732tn in the preceding month.

Despite the monthly decline in cash held outside the banking system, the data indicated that a very large share of Nigeria’s physical cash remained outside deposit money banks. The proportion of currency in circulation that was held outside banks stood at 90.91 per cent in January 2026.

This means that more than nine-tenths of cash in circulation was still outside the vaults of banks during the month under review, although the ratio was lower than the 94.33 per cent recorded in December 2025.

The latest reading suggests that while some cash returned to the banking system between December and January, the broader structure of cash usage in the economy remained heavily tilted towards cash retention outside formal banking channels.

A comparison with the same period last year showed that cash outside banks was still significantly higher on an annual basis. In January 2025, currency outside banks stood at N4.74tn, compared with N5.21tn in January 2026. This translates to a year-on-year increase of N473bn.

Similarly, currency in circulation rose by N495.68bn year-on-year from N5.24tn in January 2025 to N5.73tn in January 2026, indicating that the stock of physical cash in the economy expanded over the 12-month period.

The data also showed that the share of currency in circulation outside banks was 90.48 per cent in January 2025, slightly below the 90.91 per cent posted in January 2026. This suggests that although the ratio eased on a monthly basis from December, it remained marginally higher than the level recorded a year earlier.

The PUNCH also observed that Nigeria’s broad money supply declined by N1.05tn to N123.36tn in January 2026, largely driven by a drop in the country’s net foreign assets.

Data published on the Central Bank of Nigeria website showed that the broad money supply, commonly referred to as M3, fell from N124.41tn in December 2025 to N123.36tn in January 2026.

M3 represents the broadest measure of money circulating in an economy. It includes cash in circulation, bank deposits, and other highly liquid financial instruments held by households, businesses, and financial institutions.

The January decline represents a month-on-month contraction of N1.05tn in overall liquidity within the financial system. Despite the monthly drop, the data showed that money supply expanded significantly compared with the same period last year. Broad money stood at N111.11tn in January 2025, indicating a year-on-year increase of N12.26tn.

An analysis of the underlying components of money supply suggests that the contraction in January was largely triggered by a decline in Nigeria’s net foreign assets. According to the CBN data, net foreign assets fell to N29.61tn in January 2026 from N31.51tn recorded in December 2025, representing a month-on-month decline of N1.90tn.

Net foreign assets refer to the foreign holdings of the banking system, including the Central Bank and commercial banks, such as foreign reserves, foreign currency deposits, and other overseas financial assets, minus their external liabilities.

The year-on-year comparison also showed a decline. In January 2025, net foreign assets stood at N33.19tn, meaning the January 2026 level reflects a drop of N3.58tn. The reduction in foreign assets occurred during a period when the naira strengthened in the official foreign exchange market.

The naira ended January 2026 on a stronger footing in the official market, closing at N1,391 to the dollar, compared with its opening rate of N1,431 to the dollar at the start of the month.

Data from the Central Bank of Nigeria showed that the currency largely traded below the N1,425 to the dollar mark throughout January, reflecting relative stability in the foreign exchange market amid improved liquidity conditions.

When the naira appreciates against the dollar, the naira value of foreign assets held by the monetary authorities may decline when converted from foreign currency.

While foreign assets declined, the data showed that domestic liquidity conditions expanded. Net domestic assets increased to N93.76tn in January 2026 from N92.90tn recorded in December 2025, representing a month-on-month increase of N850.76bn.

Net domestic assets represent the financial claims within the domestic economy, including credit to the Federal Government, lending to the private sector, and other domestic financial assets held within the banking system.

On a year-on-year basis, domestic assets recorded a stronger increase, rising from N77.92tn in January 2025 to N93.76tn in January 2026, indicating a growth of N15.83tn over the period.

Further breakdown of the CBN data showed that the narrower measure of liquidity in the financial system, known as M2, also declined during the month. M2 stood at N123.35tn in January 2026, compared with N124.40tn recorded in December 2025, representing a month-on-month drop of N1.05tn.

M2 is a slightly narrower measure of money supply than M3. It typically includes currency in circulation, demand deposits, savings deposits, and time deposits held in banks, but excludes certain institutional or large financial instruments captured under M3.

Meanwhile, narrow money, which represents the most liquid form of money in the economy, increased during the period. Narrow money rose to N42.33tn in January 2026 from N42.14tn recorded in December 2025, reflecting a month-on-month increase of N190.76bn.

Narrow money generally consists of physical currency in circulation and demand deposits in banks that can be easily accessed for transactions. The figure also showed a strong annual increase compared with N36.77tn recorded in January 2025, representing a year-on-year rise of N5.57tn.

Overall, the January figures suggest that while domestic credit and transactional money expanded within the economy, the decline in the value of Nigeria’s foreign assets played a decisive role in pushing down the country’s broad money supply during the month.

The movement in monetary aggregates comes amid the Central Bank of Nigeria’s continued efforts to manage liquidity conditions in the financial system through tight monetary policy aimed at curbing inflation and stabilising the foreign exchange market.

With the decline in money supply and inflation rate, the Monetary Policy Committee (MPC) of the CBN reduced the benchmark interest rate to 26.5 per cent. This was the second time the MPC cut rates under the current leadership of the apex bank.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 304th meeting in Abuja. Cardoso said, “The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5 per cent.”

He added that the MPC also resolved to “retain the Standing Facilities Corridor around the MPR at +50/-450 basis points” and to “retain the Cash Reserve Requirement for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.”

This marks the second rate cut under the current leadership of the apex bank, following a similar 50-basis-point reduction in September 2025 and a hold at the November 2025 meeting.

Cardoso said the decision was based on “a balanced evaluation of risks to the outlook,” which indicates that “the ongoing disinflation trajectory would continue, largely supported by the lagged transmission of previous monetary tightening, sustained exchange rate stability, and enhanced food supply.”

He noted that headline inflation eased to 15.10 per cent in January 2026 from 15.15 per cent in December 2025, marking the eleventh consecutive month of year-on-year decline.

According to the governor, “Food inflation declined markedly to 8.89 per cent from 10.84 per cent,” while “core inflation declined to 17.72 per cent from 18.63 per cent.”

On a month-on-month basis, headline inflation fell to -2.88 per cent in January from 0.54 per cent in December, which the committee said signalled “a continued softening of price pressures.”

He reaffirmed the MPC’s commitment to “an evidence-based policy framework, firmly anchored on the Bank’s core mandate of ensuring price stability, while safeguarding the soundness and resilience of the financial system.”

Analysts backed the decision of the MPC to cut the rate by 50 basis points, as stakeholders affirmed that the rate cut to 26.5 per cent is mostly viewed as a credibility-building signal rather than the start of rapid easing.