The Federal Executive Council of Nigeria has approved the National Policy on Blockchain, which was drafted by the Federal Ministry of Communications & Digital Economy. This approval marks a significant milestone for the implementation of blockchain technology in Nigeria. Relevant agencies will work together to establish appropriate regulatory frameworks, and a steering committee led by the National Information and Technology Development Agency will oversee policy implementation.
Potential Legalization of Cryptocurrency Usage
The government has not yet made the approved policy public; however, many Nigerians have welcomed the news of its approval. Some have questioned whether the new policy will legalize cryptocurrency usage in the country. The Central Bank of Nigeria prohibited financial institutions from providing crypto-related services in 2021, but the CBN has yet to clarify its stance towards the industry. Despite the lack of clarity, Nigeria ranks in the top 20 of Chainalysis’ 2022 Global Crypto Adoption Index.
Nigeria’s Pro-Crypto Moves
The approval of the National Policy on Blockchain is the latest in a series of pro-crypto moves made by Nigeria. The Nigeria Securities and Exchange Commission plans to support asset tokenization and is currently processing applications from fintech firms that would serve as sub-brokers, crowdfunding intermediaries, tokenized coin issuers, and fund managers. Another Nigerian government agency met with Binance to discuss establishing a virtual assets free trade zone similar to the Dubai free trade zone in the country.
Future of Blockchain in Nigeria
The approval of the National Policy on Blockchain in Nigeria is a significant development for the country’s technology sector. With the appropriate regulatory frameworks in place, blockchain technology has the potential to revolutionize various industries, including finance, logistics, and healthcare. As Nigeria continues to make pro-crypto moves, it will be interesting to see how the country’s stance on cryptocurrency evolves and how it impacts the industry in Nigeria.