Nigeria has recently approved a National Blockchain Policy that promises to bring about significant development in the country’s rapidly growing crypto industry.
However, the nation’s blockchain revolution faces some serious challenges, with local experts voicing concerns about the implications of this new policy on the Nigerian blockchain ecosystem.
The potential of blockchain technology in Nigeria
The Nigerian government approved the National Blockchain Policy during a meeting on May 3, 2023. The policy aims to facilitate the development of Nigeria’s digital economy by leveraging blockchain and decentralized ledger technology.
Olajide Abiola, the co-founder and CEO of Nigerian fintech company KiaKia, believes that the policy has the potential to impact various areas of governance and policymaking in t.he country
Abiola says that with the correct implementation, blockchain technology can help manage digital identity, create a tamper-proof digital identity for citizens, and enable them to securely access government services.
Moreover, it could influence e-payments and billings, with businesses benefiting from reduced costs and improved cash flow while offering secure and transparent payment options.
Regulatory frameworks and economic growth
The Federal Executive Council has instructed relevant regulatory bodies to create frameworks for implementing blockchain technology in different sectors of the economy.
Local blockchain expert Barnette Akomolafe from the crypto exchange app M7pay emphasizes the importance of governments recognizing blockchain technology’s potential and encouraging innovation and investment through policies and regulations.
This could lead to economic growth and job creation for Nigerian youth.
Nadeem Anjarwalla, Binance’s West and East Africa director, also praised Nigeria’s forward-looking approach.
He believes that by approving the policy, the African country positions itself as a nation supporting blockchain innovation, user protection, security, and long-term economic competitiveness.
Six key initiatives in the national blockchain policy
Anjarwalla commended the policy document’s comprehensive approach, focusing on six key initiatives.
These include establishing Nigeria’s blockchain consortium, strengthening the regulatory and legal framework, providing national digital identity, promoting blockchain digital literacy and awareness, creating blockchain business incentive programs, and setting up a national blockchain sandbox for proof of concepts and pilot implementation.
Despite the enthusiasm surrounding the National Blockchain Policy, Nigeria’s blockchain revolution faces some obstacles. The technology has yet to be fully integrated into the daily activities of Nigerians, and the country must overcome significant challenges to fully embrace the potential of blockchain technology.
To achieve a successful blockchain revolution, Nigeria will need to invest in digital literacy and awareness, develop a solid regulatory and legal framework, and provide incentives for businesses and individuals to adopt blockchain technology.
Additionally, the nation must ensure that the technology remains secure, transparent, and accessible to all citizens.
