Nigerian National Blockchain Policy Gets Government Approval

Nigeria, known to be one of the world’s most curious nations on cryptocurrencies like Bitcoin (BTC), has approved the National Blockchain Policy for Nigeria during its meeting on May 3, 2023. The approval was in response to a note presented by Professor Isa Ali Ibrahim (Pantami ), the Honorable Minister for Communications and Digital Economy.

The Federal Ministry of Communications and Digital Economy (FMCDE), i announcementcited a report by PricewaterhouseCoopers (PwC), which predicts that the widespread use of blockchain technology across various industries could potentially contribute $1.76 trillion to global gross domestic product by 2030, representing 1.4% of world GDP.

The National Blockchain Policy for Nigeria was developed by FMCDE through stakeholder consultations in both the public and private sectors. The policy was developed on behalf of the Federal Government of Nigeria, in line with the 7th pillar of the National Digital Economy Policy and Strategy (NDEPS), which focuses on digital society and emerging technologies.

A draft Blockchain Adoption Strategy, released in October 2020, stated that blockchain and decentralized ledger technology (DLT) would “facilitate the development of the Nigerian digital economy”.

The policy aims to establish a blockchain-based economy that enables secure transactions, data sharing and value exchange between individuals, businesses and authorities. This will promote innovation, trust, growth and prosperity for all stakeholders. The implementation of the national blockchain policy is expected to have a beneficial impact on both the public and private sectors in Nigeria.

The National Information Technology Development Agency (NITDA) will be responsible for coordinating the initiatives of the policy under the supervision of FMCDE. In addition, a multi-sectoral steering committee has been established to monitor the implementation of the policy.

The Federal Executive Council has directed relevant regulatory bodies, such as NITDA, Central Bank of Nigeria (CBN), National Universities Commission (NUC), Securities and Exchange Commission (SEC), and Nigerian Communications Commission (NCC), to create regulatory frameworks for the implementation of blockchain technology in various sectors of the economy.

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The blockchain adoption strategy includes initiatives aimed at establishing a consortium for blockchain in Nigeria, strengthening the regulatory and legal framework, promoting digital identity, creating incentive programs for blockchain business, promoting digital literacy and awareness of blockchain technology, and establishing a national blockchain sandbox for testing and piloting .

Despite this new policy, transactions using cryptocurrency remain illegal in the country.