Nigeria Approves Blockchain Integration in Economic and Security Sectors

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Mon, 25 Sep 2023, 05:04 PM
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Nigeria Approves Blockchain Integration in Economic and Security Sectors

The Nigerian government establishes industry-wide regulatory frameworks and a National Steering Council, as it aims to become a pioneer in blockchain technology adoption.

Thu, 04 May 2023, 17:16 pm UTC

The decision was made public by Isa Pantami, Minister of Communications and Digital Economy, after the weekly Federal Executive Council (FEC) meeting, which was presided over by President Buhari at the Presidential Palace in Abuja.

Pantami explained that the policy was formulated after engaging in dialogue with 56 organizations and individuals, with the primary objective of incorporating blockchain technology into Nigeria's economic and security sectors.

The Security Council has directed regulatory bodies to collaborate with the National Information Technology Development Agency (NITDA) in order to create industry-wide regulatory frameworks.

This approval underscores the significant potential of blockchain technology, with projections estimating that it could contribute $1.76 trillion to the global GDP by 2030. A National Steering Council, overseen by NITDA, will be established as part of this approval.

In 2022, NITDA collaborated with Domineum Blockchain Solutions to initiate the Blockchain Scholarship Program. This program aims to educate 30,000 Nigerians in blockchain technology and help them establish professional skills in emerging technologies.

The Nigerian Export Processing Zone Authority (NEPZA) has disclosed that it is discussing a partnership with Binance to establish a digital economy that will enable entrepreneurs to expedite the adoption of blockchain technology in the West African nation.

This collaboration aims to develop a digital center akin to Virtual Dubai, as indicated in the report. Free trade zones provide incentives such as zero percent tax rates, favorable tariff rates, and full import and export tax exemptions to enhance international business.

The Nigerian government is no stranger to blockchain technology. For instance, the Central Bank of Nigeria (CBN) utilized the Hyperledger Fabric blockchain to support the country's digital currency, eNaira.

Prior to the story, the government was at a standstill regarding the use of blockchain technology and crypto payments in the country. With the authorities giving a green signal to blockchain usage, Nigeria could pave the way as a pioneer in Africa.

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