In its efforts to integrate blockchain technology into its economy, Nigeria’s Federal Executive Council gave its approval for a blockchain strategy that would support the development of its digital economy. The policy was discussed by both the public and commercial sectors before being approved, according to a tweet from the Federal Ministry of Communications and Digital Economy (FMCDE) on May 4. This information was made public in response to a note sent by Isa Pantami, the Minister of Communications and Digital Economy, to the Federal Executive Council at its meeting in the state house in Abuja.
According to the announcement signed by Dr. Femi Adeluyi, the National Information Technology Development Agency (NITDA) will oversee the measure’s operations under the direction of the Federal Ministry of Communications and the Digital Economy, Senior Technical Assistant for Research and Development to the Minister of Communications and the Digital Economy. The National Digital Economy Policy and Strategy, which President Muhammadu Buhari revealed and inaugurated on November 28, 2019, is in line with the National Blockchain Policy for Nigeria.
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.
Reflecting on the statement, “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 FMCDE pointed to a PricewaterhouseCoopers (PwC) report in the statement, which estimated that the broad adoption of blockchain technology throughout different sectors might add $1.76 trillion, or 1.4% of global GDP by 2030.
In addition to the banking sector, the news release implied that the technology may be used in the healthcare, transportation, and supply chain sectors. Both public and private sector organisations were advised by the government body to think about integrating blockchain technology. Initiatives to create a consortium for blockchain in Nigeria, strengthen the legal and regulatory framework, promote digital identity, develop incentive programmes 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.
The Federal Executive Council gave the Securities and Exchange Commission (SEC) and other authorities the order to “develop regulatory instruments for the deployment” of blockchain technology across multiple economic sectors. It was reported earlier in the week that the SEC was thinking about permitting tokenized currency offerings on authorised digital asset exchanges that were “not crypto” and were backed by equities, debt, or property.
Although crypto transactions have been banned in the country since 2021, this effort can be seen as a pavement towards a bright future for crypto in the country. Under a regulated environment, Nigeria will be able to attract investment into the country with such adoptions which in turn can boost the country’s economy.