FEC approves adoption of national blockchain policy

From Leon Usigbe, Abuja

The Federal Executive Council (FEC) on Wednesday approved a National Blockchain Policy for Nigeria to institutionalize the blockchain technology in the country.

The Minister of Communications and Digital Economy, Professor Isa Pantami, disclosed this while briefing correspondents on the outcome of the council meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

He said the approval of the policy means that the federal government has formally approved the use of the blockchain platforms, including that for cryptocurrency.

Pantami added that relevant agencies are expected to develop appropriate usage and regulatory frameworks.

He also said that a National Steering Council has been established with all other relevant federal government agencies and officials represented.

It will be headed by the Director General of the National Information Technology Development Agency (NITDA).

According to the minister further, the policy was developed through consultations with 56 institutions and personalities and aims to institutionalize blockchain technology in Nigeria’s economy and security sectors.

While noting that the Pantami National Blockchain Policy was his ministry’s 23rd national policy approved by the council, Pantami also disclosed that the policy document for the newly approved policy should be online soon.

He explained: “Today, the Federal Executive Council approved the National Blockchain Policy for Nigeria. As we all know, the Federal Government of Nigeria previously approved the National Digital Economy Policy and Strategy for a Digital Nigeria. It was unveiled and launched by His Excellency, President Muhammadu Buhari, November 28, 2019.

“In the National Digital Economy Policy and Strategy for a Digital Nigeria, we have eight pillars. Pillar number seven is the digital society and new technologies. To facilitate the implementation of this pillar, the Federal Government of Nigeria has previously approved the National Policy on Artificial Intelligence and Robotics which led to the establishment of the National Center for Artificial Intelligence and Robotics here in Abuja.

“To consolidate the implementation of the new technology pillar, the Federal Government of Nigeria today approved the National Blockchain Policy for Nigeria. This policy was developed through consultation with our stakeholders where 56 institutions and personalities were involved in the process of conceptualizing, developing and revising the policy .

“With the approval of the National Blockchain Policy for Nigeria today, we can confidently say that blockchain technology, with all its components and types, has been institutionalized in the country and part of the approval by the Federal Executive Council directs regulatory bodies to collaborate with the National Information Technology Development Agency to ensure that they come up with regulatory instruments in all sectors of our economy and security.

“Blockchain technology is relevant to so many sectors in banking, security, education, commerce, among many others.

“So, regulatory bodies like the Central Bank of Nigeria, Nigerian Communications Commission, Security and Exchange Commission, National Universities Commission have been directed with approval to come up with regulatory instruments in their sector for the implementation of the National Blockchain Policy for Nigeria.

“In addition, today’s approval involves the creation of a national steering council. That council will bring together relevant government institutions to work together, and these efforts will be coordinated by NITDA, which happens to be the regulatory body for information technology.”

On the benefits of the policy, Pantami said Nigeria has become one of the very few countries in the effort to have adopted the technology and can share in the projected potential global GDP of $1.76 trillion from it.

He said with the adoption of the policy, Nigeria can protect the integrity of most of its critical sectors that rely heavily on information and data, including the economy, education and security sectors as well as the electoral system.

The minister further stated: “There are so many opportunities in blockchain technology. A study by Price Waterhouse Coopers (PwC) predicted that by 2030, blockchain technology could be able to add $1.76tn USD to global GDP.

“African countries were left out of the equation in the first, second and third industrial revolutions. It is only in the fourth industrial revolution that we are not far away from the developed countries, it becomes necessary for us to be proactive. With this approval, we join the the very few countries that have legalized and approved blockchain in their countries, such as UK, Denmark, Switzerland, Estonia, Georgia, Singapore, United Arab Emirates, these are the few countries, they are not many.

“So, now we have joined them and we are proactive to ensure that with the policy we will increase our talent development, also discover our young innovators, give them all the necessary support they need as provided by the Nigeria Startup Act 2022 and also ensure that the technology is adopted, especially as we know that blockchain technology ensures information integrity or data integrity.

“It is also relevant even for the Independent Electoral Commission, where you need to preserve the integrity of data and by adopting blockchain technology in the process, we will get to a situation where content or information or data at their disposal cannot be changed.

“So with this approval, the blockchain and all its components and types had been approved in Nigeria and regulatory bodies shall immediately develop regulatory instruments in the sector for effective implementation and adoption.

The FEC has approved the repayment of N16.772 billion to the Borno State government which it spent on various projects.

Senior Special Assistant to the President (Vice President) Laolu Akande, disclosed this during the post-FEC briefing.

The money is the expenditure incurred by the state in the dualization of Maiduguri-Dikwa-Gambo /Ngala Road from Custom roundabout to Muna (N4,918,732,648.94), construction road and multi-level flyover at Custom Area connecting Maiduguri Konduga-Bama (Route A3) ( # 4,276,719,648.93), construction of Damboa-Chibok Road (section 1) (#5,610,014,492.32), and construction of Damboa-Chibok Road (section ii) (#1,967,019,212.00).

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