Nigeria Adopts National Blockchain Policy

Nigeria’s The Minister of Communications and Digital Economy, Isa Pantami, announced on May 3 that the Nigerian federal government has adopted a “national blockchain policy.” According to Pantami, the new policy was developed in collaboration with 56 Nigerian institutions and personalities, making it the product of extensive consultations. The Minister believes that the approval of the National Blockchain Policy for Nigeria is a significant milestone for the country’s blockchain industry.

National Blockchain Policy to Institutionalize Blockchain in Nigeria

Isa Pantami stated that the national blockchain policy institutionalizes blockchain technology in Nigeria with all its components and types. After the approval of the policy, the country’s security council and the National Information Technology Development Agency (NITDA) will work together to develop regulatory instruments for all sectors.

This policy will provide players in the blockchain industry with official support from the government. The policy’s announcement has brought hope to Nigerian cryptocurrency traders and enthusiasts who have suffered under the Central Bank of Nigeria’s (CBN) crypto directive.

The CBN Crypto Directive and the Future of Private Digital Currency

Despite the new policy, Lucky Uwakwe, the founder of technology services company Sabi Group, believes that the CBN is unlikely to reverse its stance on privately issued digital currency. Uwakwe says the central bank operates independently and even with the executive policy enacted by the Federal Executive Council, they still have the power to continue to uphold the CBN crypto restriction law.

The Sabi Group founder stated that while the announcement excites blockchain industry participants, players in the crypto space fear that the new policy alone will not force the CBN to change its position on privately issued digital currency. Uwakwe claims that the CBN’s crypto directive can only be canceled when the CBN “deletes” the directive on February 5, 2021.

Advantages and limitations of the blockchain industry and crypto traders

The benefit of the Nigerian Federal Government’s endorsement of the “National Blockchain Policy” is that it provides official recognition and institutionalization of blockchain technology in Nigeria. The policy is the product of consultations with 56 institutions and personalities, which suggests that various actors in the blockchain industry now have official support from the authorities.

This gives hope to Nigerian crypto traders and enthusiasts as it signals a shift in the government’s disposition towards technology underpinning cryptocurrencies. The new policy also suggests that the technology is “here to stay”, which could attract more investment in the blockchain industry in Nigeria.

But while the announcement is set to excite blockchain industry participants, players in the crypto space fear that the new policy alone will not force the CBN to reverse its position on privately issued digital currency. Nevertheless, the government’s blockchain policy provides a step forward in providing regulatory instruments for all sectors in Nigeria.

Final thoughts

The adoption of national blockchain legislation by the Nigerian federal government is an important step towards Nigerian adoption of blockchain technology. The development of the policy through consultations with 56 Nigerian institutions and personalities demonstrates the government’s commitment to the growth and development of technology. However, the policy’s impact on the CBN’s crypto directive remains to be seen, and players in the crypto space are still unsure whether this announcement will change anything.

Ken Emmanuel is a blockchain content writer, a Web3 enthusiast and a social media management strategist, he enjoys writing educational content to help people become more knowledgeable and inspired. The growth of any organization he works with is always his priority. He is a geographer by profession and loves to read.