Nigerian Government Launches National Policy To Encourage Implementation Of Blockchain Technology In All Economic Sectors

JAKARTA - The Nigerian government, one of the countries most interested in cryptocurrencies such as Bitcoin (BTC), has approved blockchain's national policy in its meeting on May 3, 2023. The approval is a response to a memo delivered by Isa Ali Ibrahim, Minister of Communication and Digital Economy.

In its official announcement, the Ministry of Communication and the Digital Economy Federal (FMCDE) quoted a report from PricewaterhouseCoopers (PwC) predicting the widespread adoption of blockchain technology in various industries could potentially contribute US$1.76 trillion (Rp25,850 trillion) to global gross domestic product (GDP) by 2030, representing 1.4% of the world's GDP.

FMCDE developed a blockchain national policy through stakeholder consultations in the public and private sectors. This policy was developed on behalf of Nigeria's federal government, in line with the seventh pillar of the policy and strategy of the national digital economy focused on digital society and emerging technology.

A draft blockchain adoption strategy, released in October 2020, states that blockchain technology and decentralized ledgers will "facilitate Nigeria's digital economy development".

This policy aims to make a blockchain-based economy that facilitates transactions, data sharing, and safe exchange of value between individuals, businesses and the government. Policy implementation is expected to have a positive impact on the public and private sectors in Nigeria.

The National Information Technology Development Agency (NITDA) will be responsible for coordinating policy initiatives under FMCDE supervision. In addition, a multi-sectoral steering committee has been formed to oversee policy implementation.

The Federal Executive Council has ordered relevant regulatory bodies, such as NITDA, the Nigerian Central Bank, the National University Commission, the Nigerian Securities and Exchange Commission, and the Nigerian Communications Commission to create a regulatory framework for the implementation of blockchain technology in various economic sectors.

Strategies for blockchain adoption include initiatives to form a blockchain consortium in Nigeria, strengthen regulatory and legal frameworks, promote digital identity, create blockchain business incentive programs, increase digital literacy and awareness of blockchain technology, and form a national blockchain testing room for testing and piloting.

However, despite blockchain adoption supported by this new policy, cryptocurrency transactions are still banned in the country.