The new blockchain policy is in line with Nigeria’s plan for digital transformation.
As Nigeria intensifies efforts to develop a blockchain-powered economy, the Federal Ministry of Communications and Digital Economy (FMCDE) has approved the National Blockchain Policy.
The government’s adoption of the policy will clear the road for the technology to be officially used in the nation, which has recently experienced a huge uptick in cryptocurrency adoption. Both the public and commercial sectors in Nigeria, according to the FMCDE, will benefit from its adoption.
The Adoption of Blockchain Technology
The most recent push for blockchain technology has also been sparked by Nigeria’s ambitions to transition away from its heavy reliance on the oil and gas industry. Thus allowing the economy to take on another dimension powered by digital technology.
As a result, the National Blockchain Policy was developed by the Federal Ministry of Communications and Digital Economy. This is consistent with President Muhammadu Buhari’s National Digital Economy Policy and Strategy (NDEPS), which was created in November 2019.
Under the direction of the FMCDE, the National Information Technology Development Agency (NITDA) will be responsible for organizing the policy. A multisectoral steering group has also been established by the authorities to oversee the application of policies.
The Federal Executive Council, on the other hand, gave the National Information Technology Development Agency (NITDA), the Central Bank of Nigeria, the National Universities Commission, the Securities and Exchange Commission, and the Nigerian Communications Commission specific instructions on how to create regulatory frameworks for the adoption of blockchain technology across various economic sectors.
Earlier this year, there was a cash crunch in the nation, which sparked unrest that left many people hurt and a few others dead. Nigerians are embracing cryptocurrency as a hedge against rising prices and to get around numerous restrictions on naira transactions in internet payments.
In terms of peer-to-peer exchange trading volume, the African nation was ranked 17th overall and 11th on the Chainalysis 2022 Global Crypto Adoption Index.
Adoption of Blockchain Technology: A Timeline
A recent analysis by PricewaterhouseCoopers (PwC) examined blockchain technology in depth. According to their findings, blockchain, one of the “world’s fastest-developing technologies,” might contribute $1.76 trillion to global economic growth by 2030.
The financial behemoth’s economists predict that by 2025, most companies will be using blockchain. The GDP of blockchain is anticipated to reach $422 billion by 2025.
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