• Nigerian government has approved the use of blockchain technology in the country.
• Special assistant to the President on digital and new media, Tolu Ogunlesi, said that a steering committee led by the National Information and Technology Development Agency will oversee policy implementation.
• It is yet unclear if this policy legalizes crypto usage in Nigeria.
Nigerian Government Approves Blockchain Use
The Nigeria Federal Executive Council has approved the National Policy on Blockchain drafted by the Federal Ministry of Communications & Digital Economy, paving the way for formal use of blockchain technology in the country. Special assistant to the President on digital and new media, Tolu Ogunlesi, said relevant agencies would be working to develop appropriate regulatory frameworks and a steering committee led by the National Information and Technology Development Agency will oversee policy implementation.
Cryptocurrency Usage In Nigeria
Many Nigerians have questioned whether or not this approval legalizes cryptocurrency usage in the African country. In 2021, The Central Bank of Nigeria (CBN) prohibited financial institutions from providing their services for crypto-related transactions but yet to clarify its stance towards the industry. Despite this, adoption of cryptocurrency continues as Chainalysis ranked Nigeria among top 20 nations with largest volume of trading activity.
Reaction To The Policy
Many Nigerians have welcomed news of approval even before seeing policy document which is soon to be provided. Some have also questioned if it legalizes crypto usage in country while others believe that it may lead to more innovation within growing tech sector as well as encourages remittance payments amongst citizens abroad using Bitcoin or other cryptocurrencies.
Potential Benefits Of Blockchain Usage
The approval could open doors for further development within Nigerian tech industry as it provides opportunity for businesses operating within country to leverage blockchain technology for various operations such as data storage, smart contracts and distributed ledger tracking processes. This will help reduce costs associated with managing records while increasing efficiency through improved traceability thus reducing time taken for traditional procedures such as payment processing significantly.
The approval from Nigerian government opens up possibilities for growth within local tech sector and potential benefits associated with leveraging blockchain technology for various operations such businesses can take advantage off moving forward. However there are still some uncertainties surrounding crypto usage in Nigeria which need to be addressed before we can see any real impact from new policy changes.