Nigerian President’s Hopeful’s Party Says It Will Review Country’s Blockchain and Crypto Policies If Elected – Africa Bitcoin News

The party of Nigerian presidential hopeful Asiwaju Bola Tinubu has promised to set up an advisory committee to review regulations governing blockchain and virtual asset services if it wins the upcoming election. The All Progressives Congress also said it “will work with the central bank and the financial sector to carefully review and better optimize the exchange rate regime.”

A “business-friendly regulation”

In its recently unveiled manifesto, Nigerian presidential aspirant Asiwaju Bola Tinubu’s party – the All Progressives Congress (APC) – said it plans to “establish an advisory committee to review the existing regulatory environment governing blockchain technology and virtual asset services.” The APC, which is also the party of current Nigerian President Muhammadu Buhari, added that the committee would, where necessary, propose changes that provide “a more efficient and business-friendly regulatory framework”.

According to the APC’s 80-page manifesto, the Tinubu government actually wants to reform Nigeria’s policy towards information technology.

“We will reform government policy to encourage the prudent use of blockchain technology in finance and banking, identity management, revenue collection and the use of crypto-assets,” reads an extract from the APC manifesto.

During the tenure of the outgoing President Buhari, the Nigerian government and the Central Bank of Nigeria (CBN) have pursued policies that discourage the use of crypto-assets. In addition, the CBN’s February 5, 2021 directive against crypto-assets as well as the subsequent crackdown on entities defying the order are believed to have forced some start-ups to stop operations in Nigeria.

However, according to the APC manifesto, the Tinubu government will prioritize putting in place a business-friendly regulatory framework. In addition, the manifesto says an APC government will “also encourage the CBN to expand the use of our digital currency, the e-naira.”

Exchange rate “Most Evocative Monetary Questions”

Meanwhile, regarding the local currency’s exchange rate, APC acknowledges that this may be “the most evocative monetary issue of the day.” However, the party argues that since it affects the cost of imports, the competitiveness of exports and net capital flows, management “cannot be ignored or left to the vagaries of an unfettered market”.

As previously reported by Bitcoin.com News, the naira’s fall against the US dollar – albeit on the parallel market – has partly contributed to the rise in Nigeria’s inflation rate. Nigeria’s inability to generate enough foreign exchange to cover its import bill is often cited as the main reason for the naira’s continued weakening. Despite the currency falling against the dollar to just below N750;$1, the CBN is still keeping the naira officially pegged at just below N450:$1.

However, the APC suggested in its manifesto that it would take a different approach to managing the stock exchange.

“To ensure that exchange rate policy harmonizes with our goals of optimal growth and job creation driven by industrial, agricultural and infrastructural expansion, we will work with the central bank and the financial sector to carefully review and better optimize the exchange rate regime,” APC said.

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Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, writer and author. He has written extensively about the economic problems in some African countries, as well as how digital currencies can provide Africans with an escape route.