Nigeria’s government, one of the world’s most interested in cryptocurrencies such as Bitcoin, passed a national blockchain policy at its meeting on May 3, 2023. The clearance 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 to global GDP by 2030, representing 1.4% of global GDP.
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The national blockchain strategy was established by the FMCDE through stakeholder discussions in both the public and business sectors.
According to a draft of the blockchain adoption strategy published in October 2020, blockchain and decentralized ledger technology will “facilitate the development of the Nigerian digital economy.”
The strategy aspires to create 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 both the public and private sectors in Nigeria.
Under the direction of the FMCDE, the National Information Technology Development Agency (NITDA) will be in charge of coordinating 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 for the use of blockchain technology in various sectors of the economy.
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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.
Despite this new policy, transactions using cryptocurrency remain illegal in the country.
