Nigeria approves new policy to build a “blockchain-powered” economy

•  The Nigerian communications ministry developed a new national blockchain strategy.
• The government statement made no mention of cryptocurrency, which the government banned in 2021.

As part of Nigeria’s endeavor to transition to a digital economy, the government has established a national blockchain strategy.

The policy was developed by the Federal Ministry of Communications and Digital Economy (FMCDE) on 3 May, as per a statement shared on Twitter.

The clearance came in response to a document given by Minister of Communications and Digital Economy Isa Ali Ibrahim.

The FMCDE cited a PricewaterhouseCoopers 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.

According to the press statement, the policy’s objective is to build a blockchain-powered economy.  This can help in improving innovation, trust, growth, and prosperity for all.

The policy document does not appear to have been made public yet.

The cabinet, called the Federal Executive Council, instructed regulators like the Central Bank of Nigeria, the National Information Technology Development Agency (NITDA) and the Securities and Exchange Commission (SEC) to create and implement regulatory measures for the deployment of blockchain technology across various sectors of the economy.

Furthermore, under the direction of the FMCDE, the NITDA will be in charge of coordinating policy initiatives.  A multi-sectoral steering committee was formed as well.

No mention of cryptocurrency as it remains banned

The blockchain adoption strategy includes initiatives aimed at establishing a consortium for blockchain in Nigeria, strengthening the regulatory and legal framework, promoting digital identity and creating blockchain business incentive programs.

Additionally, it also plans to establish a national blockchain sandbox for testing and piloting.

However, the statement made no mention of cryptocurrency. The government banned cryptocurrencies in 2021 after the country emerged as one of the world’s quickest digital asset adopters. Cryptocurrency transactions are still banned in the country.