Government Endorses Nigeria’s National Blockchain Policy

May. 4, 2023
Government Endorses Nigeria’s National Blockchain Policy

Nigeria’s government adopts National Blockchain Policy as the regulatory framework for blockchain technology adoption. This move will establish a blockchain-based economy to enhance secure transactions, data sharing, and value exchange among individuals, businesses, and the government. Additionally, they expect it to boost all stakeholders’ innovation, trust, growth, and prosperity.

The Federal Ministry of Communications and Digital Economy (FMCDE), in the announcement, referenced a PricewaterhouseCoopers (PwC) analysis that projects that the broad use of blockchain’s technology across a variety of industries may possibly add $1.76 trillion, or 1.4% of global GDP, to the global gross domestic product by 2030.

Through stakeholder consultations in the public and private sectors, the FMCDE created the National Blockchain Policy for Nigeria.

Moreover, the Federal Government of Nigeria created the National Digital Economy Policy and Strategy (NDEPS) on behalf of its citizens, with a focus on the Digital Society and Emerging Technologies, as outlined in the 7th pillar of the Policy. In October 2020, a draft of the Blockchain’s Adoption plan stated that blockchain and DLT would aid Nigeria’s digital economy.

Boosting The Economy with Blockchain Adoption

NITDA will coordinate Policy-related activities directed by FMCDE. They are responsible for Information Technology Development under this arrangement. To oversee the Policy’s execution, a Steering Committee comprising members from several industries has been established.

Furthermore, the Federal Executive Council has instructed regulatory bodies to create frameworks for blockchain technology implementation. The bodies include NITDA, CBN, NUC, SEC, and NCC. The aim is to apply the technology in various sectors of the economy. This move will likely promote growth and development in Nigeria’s economy.

Initiatives to create a consortium for blockchains in Nigeria, strengthen the legal and regulatory framework, promote digital identity, develop incentive programs for blockchain businesses, promote digital literacy and awareness of blockchain technology, and establish a national blockchain sandbox for testing and piloting are all part of the strategy for blockchain adoption.

Despite the new Policy, transactions using cryptocurrency remain illegal in the country. In conclusion, approving the National Blockchain Policy for Nigeria is a significant step towards boosting the country’s economy and enhancing innovation and trust in blockchain technology.

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With this Policy, Nigeria will join other countries already implementing blockchain-based solutions in various industries. They expect that Nigeria’s regulatory framework will facilitate blockchain technology adoption. This will help the country tap into its potential benefits.

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.