The Nigerian government has released a whitepaper in its efforts to create a National Blockchain Policy. The country’s Minister of Communications, Innovation, and Digital Economy, Federal Republic of Nigeria, Bosun Tijani, announced the development of X.
According to Tijani, the policy seeks to provide a framework for blockchain adoption in Nigeria that considers the local dynamics.
He said:
“The inclusive approach ensures that Nigeria’s Blockchain policy is not only technically sound but also locally relevant, with broad-based support that reflects the realities and aspirations of our nation.”
Meanwhile, the whitepaper, which is a five-page document, highlighted how blockchain technology could benefit the country. It listed financial inclusion, digital identity, and supply chain transparency as direct impacts that the technology could have on the country.
Thus, the policy intends to build on the National Blockchain Strategy published by the National Information Technology Development Agency (NITDA) in 2024. The government plans to work with top researchers globally and engage with stakeholders in the public and private sectors.
Interestingly, the paper claimed that it identified 21 researchers of Nigerian descent who published papers on blockchain technology after using generative AI to analyze almost 3,000 papers by around 7,000 contributors in the field.
It listed all the researchers, noting that they will work with the government to develop a structured and comprehensive policy. However, the paper called on the public to recommend any other researchers of Nigerian descent in the blockchain technology space.
Mixed reactions trail the whitepaper publication
Meanwhile, the paper has generated multiple reactions from the crypto community and Nigerians. Some stakeholders, including Base creator Jesse Pollak, believe this is a step in the right direction for the country.
However, most Nigerians are not thrilled about the idea, noting that the government has not taken any steps to implement previous blockchain policies. They point to the NITDA Blockchain Policy launched in 2023, which also had a similar objective to the new one.
Thus, many believe this recent blockchain policy is another white elephant project by the government that does not yield any results and wastes the country’s resources.
However, others are more critical of the government’s approach to the crypto sector, particularly its treatment of Binance executives in 2024. They noted that the Minister needs to first apologize to Binance before championing any blockchain policy.
Still, some believe the country faces more important issues that must be addressed before blockchain technology. This group highlighted Nigeria’s infrastructural challenges, noting that this deserves more attention and must be addressed before achieving any technological goals.
Nigeria’s checkered relationship with the crypto and blockchain industry
The criticisms of Nigerians about the blockchain policy are not completely surprising, given the country’s history with the industry. Over the past few years, there has been a lack of regulatory clarity about the crypto industry in the country, with some government policies considered anti-crypto.
While crypto activity has never been outrightly banned, there have been instances of debanking crypto-related transactions, such as in 2020 when the Central Bank ordered banks to stop processing transactions for crypto firms.
In 2024, Nigeria was in the negative spotlight after detaining two Binance executives and blaming the exchange for the depreciation of the local currency. It took the US government intervention for the country to finally release one of the executives after the other escaped.
Despite the government’s approach to the industry, Nigeria remains one of the top countries in terms of crypto adoption. It ranks second on the Chainalysis 2024 Global Crypto Adoption Index and was the first in stablecoin adoption, according to a survey of emerging markets by Castle Island Ventures.
Interestingly, the sector is also seeing more regulatory clarity. The Nigerian Securities and Exchange Commission (SEC) granted crypto licenses to some exchanges last year and published rules for issuing, trading, and custody of digital assets.
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