Nigeria’s Federal Executive Council Approves Blockchain Policy

The Nigerian government has just approved a blockchain policy that will facilitate the development of a regulatory framework for the technology. The approval took place on 3 May Federal board meeting.

Blockchain adoption can positively impact the economy

In particular, the Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim, had presented a note on the regulations earlier.

While announcement approval, FMCDE cited a PricewaterhouseCoopers (PwC) report that predicts the growing blockchain adoption and how it will increase global gross domestic product by 2030. It noted that global GDP could gain an additional $1.76 trillion from various industries representing about 1, 4% of world GDP.

In October 2020, the country released a draft blockchain adoption strategy. The document mentioned decentralized ledger and blockchain technology would support the growth of the Nigerian digital economy.

FMCDE developed the national policy by consulting private and public sector stakeholders. The creation of the policy is in accordance with the seventh pillar of the national policy and strategy for the digital economy, with the main focus of the policy on growing global innovative technologies and the digital society.

The importance of the new national policy

The main objective of the new policy is to create a blockchain-based economy suitable for digital activities in the country. It will ensure secure transactions, value exchange and data sharing between individuals, companies and authorities. The policy will also positively affect the public and private sectors in the country.

Blockchain adoption strategy in Nigeria cuts across multiple avenues and initiatives. These include establishing a blockchain consortium, promoting digital identity and developing a national blockchain sandbox for piloting and testing.

The strategy will also involve the creation of blockchain business incentive programs, promoting digital awareness and literacy of blockchain technology, and building a robust regulatory and legal framework.

While the FMCDE will oversee the policy initiatives, the coordinating responsibility rests with the National Information Technology Development Agency (NITDA). A multi-sectoral committee has also been established to oversee policy implementation.

Furthermore, several regulatory bodies will put in place some regulatory regimes for the implementation of blockchain technology in many sectors of the economy.

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