Legal Informer: Nigeria Paves the Way for Technological Advancement With Approval of National Blockchain Policy
A National Blockchain Policy was recently adopted by Nigeria’s government, which is a promising move for the nation’s Tech sector. The use of blockchain technology, which has the potential to transform numerous industries, has been helped to be regulated by this policy. To ensure that everyone’s ideas were considered, the policy was produced through consultations with stakeholders from the public and private sectors.
This policy’s creation was consistent with the government’s general approach to the digital economy, which acknowledges the significance of cutting-edge innovations like blockchain. Following the draft of the blockchain adoption strategy, released in October 2020, which stated that blockchain and decentralized ledger technology would “facilitate the development of the
Nigerian digital economy.”
The strategy for blockchain adoption includes initiatives aimed at establishing a consortium for blockchain in Nigeria, strengthening the regulatory and legal framework, promoting digital identity, creating blockchain business incentive programs, fostering digital literacy and awareness of blockchain technology, and establishing a national blockchain sandbox for testing and piloting.
The FMCDE [Federal Ministry of Communications and Digital Economy] developed the national blockchain policy through stakeholder consultations in both the public and private sectors. The policy was developed on behalf of the federal government of Nigeria, in line with the seventh pillar of the national digital economy policy and strategy, which focuses on digital society and
The National Universities Commission, the Securities and Exchange Commission, the Securities and Exchange Commission of Nigeria, and the Nigerian Communications Commission are among the regulatory organisations that have been instructed by the Federal Executive Council to establish rules for the adoption of blockchain technology across various economic sectors.
The National Information Technology Development Agency (NITDA) will be responsible for coordinating the policy initiatives under the supervision of the FMCDE. Additionally, a multisectoral steering committee has been established to oversee policy implementation. These are encouraging indicators that the government is acknowledging the potential of blockchain technology and moving towards its regulation in Nigeria, despite the lack of a legal and regulatory framework to drive the use of the technology.
Blockchain technology in Nigeria has a bright future with initiatives like the National Blockchain Adoption Strategy and the SEC’s classification of cryptocurrencies as securities. As a result, it is expected that in the upcoming years, Nigeria will see a surge in the implementation of blockchain technology in both the public and private sectors, made possible by precise rules and laws that safeguard customers and businesses while encouraging innovation and growth.