Economy
The Impact of Digital Asset Trading Market on Nigeria’s Economy
What are Digital Assets?
Digital assets are simply items whose content is stored in electronic format.
With that definition, you would most likely be thinking about images, music, movies, documents, etc. The truth is, those indeed are digital assets. Thanks to technology, these assets have developed far beyond that, and are also digital currencies.
What Are The Types of Digital Assets?
Based on this article, I would be focusing on two major types of digital assets which serve as a source of money. Gift cards and cryptocurrencies.
Gift Cards
Gift cards or gift certificates are a type of debit card, pre-loaded with a specific amount of money that could be used for a variety of purchases at a designated brand.
Gift cards serve as alternative sources of payment at designated brands. For example; A $100 Amazon gift card could be redeemed to make purchases online or any of the multiple Amazon stores located in the United States.
These cards are also excellent presents to give a loved one on their special day. When a birthday, wedding anniversary, baby shower, graduation, etc is coming up, gifting your loved one a loaded gift card from their favourite brand would always put you in their good books.
Presently, the numerous gift card brands could not all be possibly be listed. However, some of the notable and familiar names include; Amazon, Itunes, Steam, Walmart, Apple, Google Play Gift Cards, etc.
Cryptocurrencies
What are cryptocurrencies?
Cryptocurrencies are Binary data that were designed to serve as a means of exchange of goods and services. Created with the use of blockchain technology, these coins are secured by Cryptography.
Currently, there are over 10,000 coins in the crypto market. You should be familiar with certain names like Ethereum, Bitcoin, Tether, etc.
Evolution of Digital Asset trading in Nigeria
To those who are just getting accustomed to digital asset trading in Nigeria, you should consider yourselves lucky. There is a very huge difference between what it is now and what it was back then.
A couple of years back, most Nigerians were not familiar with this concept. A crypto or gift card holder in Nigeria, wanting to exchange his asset for cash was practically embarking on an impossible mission here.
It was just not feasible. This was not a result of the difficulty of this process per se, but the awareness, There were a lot of dark clouds regarding these assets here in Nigeria, and as a result, people felt very hesitant to own or collect them. With very little demand for this service, there was no incentive for individuals to provide supply.
How did we get here? you may be wondering. Thanks to certain trading platforms that decided to pioneer the movement, the market was able to grow over the years.
The founders of these early platforms also witnessed the vast scarcity in the market and knew that they most likely won’t be the only ones going through this. They leapt and decided to create a solution to this problem without ripping people off.
Word got around, and many other Nigerians developed the confidence to trust these platforms with their assets. As the demand for this service started growing rapidly, other entrepreneurs saw the opportunity and decided to enter the market.
In Nigeria, what was once perceived as a myth, is not only possible but has been made very simple.
The Impact of The Digital Asset Trading Market on Nigeria’s Economy
Another important aspect to look at after the evolution of this market is its impact. Has this market affected Nigeria’s economy Positively or negatively?
I believe that everything in life has its pros and cons. It would be up to you to decide if the pros outweigh the cons for you or vice versa.
Since the introduction of digital asset trading on a national level, Nigerian citizens have enjoyed the ease of transactions. Day-to-day activities such as payments and exchange have been made simpler and faster amongst Nigerians and even beyond.
The increase in patronage of this service has profited such platforms, which has led to its continuity and expansion. This act has employed various intelligent Nigerians.
This market has also aided international business transactions between Nigerians and individuals and companies in the diaspora.
For example, a graphics designer or web developer working remotely in Nigeria could be freelancing for a company located in America and receive payment straight to his BTC wallet or the equivalent in gift cards, which saves the several hassles faced in the banking halls or waiting for hours or days for the money to arrive from outside the country.
With the massive rise in demand for this service, unfortunately, there was also an increase in digital asset scams in the market. Crypto and gift card owners have fallen victim to these scammers throughout exchanging their assets for cash.
Quite frankly, this would only happen when adequate research is not conducted. With money, you should be patient. There should be enough background checks done with whoever you are entrusting your money with. Till today there are still various victims of BVN and real estate scams. This would not stop us from using our traditional banks or buying and renting properties.
There are still legitimate exchange platforms to sell gift cards in Nigeria which could be used to avoid scams.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
