Nigeria’s Federal Executive Council Approves Its National Blockchain Policy 

Subh Rath

May 5, 2023

The Nigerian government gives a green signal to the national blockchain policy to assist the country in developing a regulatory framework. This framework will further assist the country in implementing this technology.

Nigeria’s government is known to be one of the world’s most crypto-obsessed nations. However, it took a long while for the government to officially step into the race of blockchain development by passing a national blockchain policy at its meeting on May 3, 2023. 

After all, transactions with cryptocurrency are still illegal in Nigeria. However, still, this policy came in response to a document given by Minister of Communications and Digital Economy Isa Ali Ibrahim.

The Federal Ministry of Communications and Digital Economy (FMCDE) cited a PricewaterhouseCoopers (PwC) report in the announcement, predicting that widespread adoption of blockchain technology across various industries could potentially contribute $1.76 trillion global GDP by 2030, representing 1.4% of global GDP.

According to Kashifu Inuwa, the Director General of NITDA, initiatives aimed at establishing a blockchain consortium in Nigeria, strengthening the regulatory and legal framework, promoting digital identity, creating blockchain business incentive programs, fostering digital literacy and awareness of blockchain technology, and establishing a national blockchain sandbox for testing and piloting are all part of the blockchain adoption strategy.

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The Goal of This National Blockchain Policy: 

A draft of the blockchain adoption strategy was previously posted in October 2020. This proposal states blockchain and decentralized ledger technology will “facilitate the development of the Nigerian digital economy.”

Given this, the policy seeks to develop a blockchain-based economy that allows for safe transactions, data sharing, and value exchange between individuals, corporations, and the government. The policy’s execution is projected to benefit Nigeria’s public and private sectors.

Under the direction of the FMCDE, the National Information Technology Development Agency (NITDA) will coordinate policy initiatives. A multi-sectoral steering committee has also been formed to oversee policy implementation.

The Federal Executive Council has directed relevant regulatory bodies, including NITDA, the Central Bank of Nigeria, the National Universities Commission, the Securities and Exchange Commission, and the Nigerian Communications Commission, to develop regulatory frameworks with SEC for using blockchain technology in various sectors of the economy.

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