Although the Nigerian government passed the blockchain policy, cryptocurrency transactions remain illegal in the country.
Nigeria's government has given the green light to a national blockchain policy, embracing the technology that underlies cryptocurrencies like Bitcoin (BTC).
The approval came shortly after Isa Ali Ibrahim, the Minister of Communications and Digital Economy, presented the memo.
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According to the Federal Ministry of Communications and Digital Economy's (FMCDE) announcement, a PricewaterhouseCoopers (PwC) report suggests that by 2030, blockchain adoption across various industries could contribute $1.76 trillion to the global GDP, accounting for 1.4% of the world's GDP.
In developing the policy, the FMCDE consulted stakeholders from both the public and private sectors, aligning it with the seventh pillar of Nigeria's national digital economy policy and strategy.
The blockchain adoption strategy draft, published in October 2020, emphasized that blockchain and decentralized ledger technology would play a crucial role in the growth of Nigeria's digital economy.
The new policy aims to create a blockchain-based economy that enables secure transactions, value exchange, and data sharing among individuals, businesses, and the government.
The National Information Technology Development Agency (NITDA) will coordinate policy initiatives under the FMCDE's supervision, with a multisectoral steering committee overseeing implementation.
The Federal Executive Council has directed various regulatory bodies, including NITDA, the Central Bank of Nigeria, the National Universities Commission, the Securities and Exchange Commission, and the Nigerian Communications Commission, to establish regulatory frameworks for blockchain technology implementation across different economic sectors.
The blockchain adoption strategy features initiatives for promoting digital identity, setting up a Nigerian blockchain consortium, introducing blockchain business incentive programs, enhancing the regulatory and legal framework, creating a national blockchain sandbox for testing and piloting, and fostering digital literacy and blockchain technology awareness.
Despite this progressive policy, it's important to note that cryptocurrency transactions remain illegal in Nigeria. This highlights the government's focus on leveraging the underlying blockchain technology for economic development while maintaining a cautious approach toward cryptocurrencies.
At the end of March, Nigeria's CBDC experienced rapid adoption amid the fiat currency crisis.
