Explainer: What blockchain policy approval means for Nigeria

The Federal Government of Nigeria recently adopted a nationwide blockchain policy aimed at institutionalizing blockchain technology in the country’s economic and security sectors.

The endorsement, which highlights the potential opportunities of blockchain technology, paves the way for Nigerians, especially the tech-savvy youths, to tap more into the trillion dollar blockchain market.

According to a PwC report, blockchain technologies could boost the global economy to $1.76 trillion by 2030 through increasing levels of tracking, tracing and trust.

Blockchain technology is a decentralized digital ledger that records transactions in a secure, transparent and immutable manner. Each block in the chain contains a cryptographic hash of the previous block, creating an unbreakable chain of information that allows a high level of trust and integrity, since it is virtually impossible to change previous transactions without the consensus of the network. It has the potential to revolutionize a wide range of industries by enabling secure and efficient peer-to-peer transactions without the need for intermediaries.

Many tech-savvy Nigerians who had intentions of building their platform by leveraging technology over the years have sometimes been discouraged due to regulatory concerns and this policy now provides an opportunity to advance their projects.

“Nigeria’s economy, if allowed to become a blockchain-powered one, will see a tremendous improvement, where blockchain-based projects and start-ups will increase, innovations will thrive, foreign investors will flood the country, transactions will be safe, data sharing will be easily accessible and secure and trust will increase,” said Jude Ozinegbe, founder of Cyberchain.

Ozinigbe said with the approved policy implemented, Africa’s largest economy will reassess the position of blockchain and other related platforms, which were neglected since 2021 following the ban on cryptocurrency transactions by the Central Bank of Nigeria.

He said: “In 2021, there was a restriction on commercial banks by the Central Bank of Nigeria from engaging and facilitating cryptocurrency transactions. This had a huge negative effect on everything related to blockchain, when in the real sense, crypto is only a subset of blockchain. With this approval, that narrative will soon change. We will begin to see an increase in the level of acceptance of blockchain technology across the nation.”

“Over time, we will see enormous industrial growth, creating jobs, new sources of wealth and increased productivity in both the private and public sectors. In fact, Nigeria’s economy is experiencing a tremendous boost and expansion.”

He called for more education and awareness to enable relevant stakeholders to experience a better understanding of what blockchain offers.

For Gozie Onyema, a cryptocurrency investor, the policy will enable the government to gain more understanding of the potential of these platforms, including cryptocurrency, which have been neglected due to the proposed dangers they envisioned in the market.

“Despite crypto operations not being fully accepted by the Nigerian government, the country has been ranked as one of the leading markets globally. As our leaders begin to see the success of blockchain technology, they may reconsider crypto operation, which is the future payment disruptor, Onyema said.

Also Read: Cyberchain to Empower Nigerians with Blockchain Education

He added that the technology being approved will also help identify talent who can now leverage the technology to secure wealth and create more job opportunities in the country as unemployment continues to rise, especially among the youth.

Nadeem Anjarwalla, Director at Binance West & East Africa, said with the approval of the National Blockchain Adoption Policy, Nigeria is positioning itself as a nation significantly ahead of the curve, supporting further blockchain innovation, user protection, security and economic competitiveness in the long run. term.

“Although we are still in the early stages, we are happy to see this development as it will help with clarity, trust and confidence in the ecosystem,” Anjarwalla said. “We believe that growth in blockchain technology is set to become a key differentiator for economies and a key measure of international competitiveness in the next decade to attract foreign direct investment, cultivate innovation and create jobs. As such, this is a welcome development and a significant milestone for the blockchain industry in Nigeria.”

With the approval, Nigeria has joined the list of countries such as the UK, Switzerland, Estonia, Singapore, the United Arab Emirates and Denmark to adopt blockchain technology at the national level.