Nigeria Paves the Way for Digital Economy Growth with National Blockchain Policy Approval

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Key takeaways:

  • To help its economy, Nigeria has established a National Blockchain Policy.
  • The policy aims to create a blockchain-based economy that enables safe exchanges of value between citizens, companies, and the government. 

On May 3, 2023, the Nigerian government, one of the world’s most interested countries in cryptocurrencies like Bitcoin, enacted a national blockchain policy. The minister of communications and the digital economy, Isa Ali Ibrahim, delivered a letter, which was approved in response.

The Federal Ministry of Communications and Digital Economy (FMCDE) cited a PricewaterhouseCoopers (PwC) report in its announcement, which forecast that the widespread implementation of blockchain technology throughout different sectors could potentially bring $1.76 trillion, or 1.4% of global GDP, to the global gross domestic product by 2030.

The national blockchain policy was created by the FMCDE after consulting with stakeholders in the public and business sectors. The national digital economy policy and strategy’s seventh pillar, which strongly emphasizes the digital society and emerging technologies, was followed in developing the policy on behalf of the Nigerian federal government. The press release mentioned:

“The vision of the Policy is to create a Blockchain-powered economy that supports secure transactions, data sharing, and value exchange between people, businesses, and Government, thereby enhancing innovation, trust, growth, and prosperity for all”

The expansion of the Nigerian digital economy would be facilitated by blockchain and decentralized ledger technology, according to a draft of the blockchain adoption strategy published in October 2020.

The goal of the policy is to create a blockchain-based economy that enables safe exchanges of value between citizens, companies, and the government. The public and private sectors in Nigeria are anticipated to benefit from the policy’s implementation.

Under the direction of the FMCDE, the National Information Technology Development Agency (NITDA) will be in charge of organizing the policy initiatives. A multisectoral steering committee has also been established to oversee the application of the strategy.

The National Universities Commission, the Securities and Exchange Commission, the Securities and Exchange Commission of Nigeria, and the Nigerian Communications Commission are among the regulatory agencies that the Federal Executive Council has directed to develop regulatory frameworks for adopting blockchain technology in various economic sectors.

Initiatives to create a consortium for blockchain in Nigeria, strengthen the legal and regulatory framework, promote digital identity, develop incentive programs for blockchain businesses, promote digital literacy and awareness of blockchain technology, and establish a national blockchain sandbox for testing and piloting are all part of the strategy for blockchain adoption. Despite this new regulation, cryptocurrency transactions are still prohibited in the country.

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