Nigerian Government Promotes Blockchain National Strategy

The federal government of Nigeria is developing strategies for national blockchain adoption with the vision of creating a “Digital Nigeria.” 

October 17, 2020 | AtoZ Markets – It turns out that the federal government of Nigeria, which boasts the largest population and economy in Africa, is planning to introduce blockchain technology as a national strategy.

According to the local media “Technology Times“, the Federal Ministry of Communications and Digital Economy (FMoCDE) and the National Information Technology Development Agency (NITDA) have jointly created a document entitled “National Blockchain Recruitment Strategy” and the government will “go to the digital economy”. He presented comprehensive guidelines and frameworks for “utilizing blockchain technology as a platform for migration.”

Why the Nigerian government is leveraging on Blockchain for national strategy

According to this document, the Nigerian government is leveraging digital technology to step up its efforts to diversify its economy in order to move away from an economy that is highly dependent on its main industry, the oil and gas sector.

In order to promote the creation and development of “Digital Nigeria” that is efficient, safe, highly productive, and feasible, the strategy of adopting blockchain technology has been struck by the arrow.

The document introduces the value of blockchain to promote trust between the government and the private sector, considerations and challenges in assessing blockchain use cases, as well as lessons learned from experience in implementing blockchain in developed countries. It is, however, intended to be a guide for the introduction of the blockchain system in Nigeria.

Strategic framework

The document outlines the roadmap and strategies for adopting blockchain technology, and sets strategic goals and specific initiatives that should be specifically pursued through all federal ministries.

Nigerian Government Promotes Blockchain National Strategy

Source: FMoCDE

Vision : Utilize blockchain as a technology to realize the transition to the digital economy

Mission : Promote the adoption of blockchain technology in government, increase efficiency, transparency and accountability in governance and open up opportunities for job creation in the transformational challenges of the digital economy.

The strategic framework, however, consists of five goals, six initiatives, government policy, and a regulatory framework.

Strategic goal

  • Establishment of regulation and supervision methods
  • Promote innovation and entrepreneurship
  • Improving safety, reliability, and transparency in the value chain
  • Promote investment opportunities and job creation
  • Governance

The following six initiatives are listed as initiatives to achieve these goals.

  • Establishment of Nigeria Blockchain Consortium
  • Strengthening regulatory and legal framework
  • Creating a framework for national digital IDs
  • Incentive program for blockchain business
  • Promote the improvement of knowledge and awareness about blockchain
  • Establishment of public blockchain sandbox for proof of concept and pilot operation

And the following government framework supports the promotion of blockchain adoption.

  • National Digital Economic Strategy and Policy (2020-2030)
  • National IT Policy (formulated in 2012)
  • E-government master plan
  • Nigeria Cloud Policy (formulated in 2019)
  • National Broadband Plan (2020-2025)
  • Data protection regulations (formulated in 2019)

Nigeria with high virtual currency usage

According to a cryptocurrency usage report released in September by blockchain analysis company Chainalysis, Nigeria ranked 8th after the United States in 6th place and South Africa in 7th place. (1st Ukraine, 2nd Russia, 3rd Venezuela)

Read also: Nigeria ranks top in Google Bitcoin search

As AtoZ Markets reported, Binance, the world’s largest cryptocurrency exchange by volume is the first to laucnch fiat currency pair in Nigeria Naira. This is also available in the social payment app Bundle, which mainly targets the African market. P2P cryptocurrency trading is also the most popular among African countries.

In terms of regulation, the situation has been ambiguous for a long time, but last month the Securities and Exchange Commission (SEC) announced that it would treat all digital assets and token offerings as securities. The authorities have also made progress in creating a clear regulatory framework.

Read also: Growing Crypto Adoption in Africa Prompts Regulatory Concerns

The above-mentioned strategic document aiming at the spread of blockchain also mentions the strengthening of the legal framework for virtual currencies, and it is expected that the momentum for regulatory development will increase in Nigeria in the future.

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