Government Approves National Blockchain Policy In Nigeria

Nigeria's Federal Ministry of Communications and Digital Economy (FMCDE) announced on Thursday that the National Blockchain Policy has been approved in the country as the government plans to make a blockchain-powered economy.

The policy approval will reportedly ensure that the technology will be used in Nigeria formally, and FMCDE believes blockchain technology is going to help both the public and private sectors in the country.

In the official FMCDE statement posted on Twitter, the government referred to a PricewaterhouseCoopers (PwC) report, which claimed that "blockchain technologies could boost the global economy with US$1.76 trillion by 2030."

FMCDE further said the National Blockchain Policy for Nigeria aligns with the National Digital Economy Policy and Strategy (NDEPS), which was launched by President Muhammadu Buhari in November 2019.

"The Federal Ministry of Communications and Digital Economy developed the National Blockchain Policy for Nigeria on behalf of the Federal Government of Nigeria, in line with the 7th Pillar of the NDEPS, which focuses on Digital Society and Emerging Technologies," the statement read.

It further explained the vision of approving this policy, adding that it would help perform secure transactions, data sharing and value exchange between people and businesses.

Blockchain technology has the potential to bring positive effects in any industry including finance, health care, transportation and supply chain management, as it will ensure transactions are transparent, trustworthy and efficient. Moreover, it will save costs and provide a better user experience.

According to FMCDE, this new policy will help create more job opportunities and improve the economic condition of the country. "These benefits have inspired governments around the world to explore ways to leverage this important technology," it added.

FMCDE also shared that the activities of the policy shall be coordinated by the National Information Technology Development Agency under the supervision of the Federal Ministry of Communications and Digital Economy. Furthermore, the implementation of the Policy will be supervised by a multi-sectoral Steering Committee.

With the new policy, the government is encouraging everyone including the State government and private and public sectors to leverage blockchain technologies in education, health, security, agriculture and finance, among many other sectors.

"Deploying these applications will further support the implementation of the National Digital Economy Policy and Strategy for a Digital Nigeria," the statement concluded.

Central Bank of Nigeria Director of Banking Supervision Haruna Bala Mustapha said last month that they were promoting the use of electronic payments, as the country was struggling with hard cash following decentralization.

Nigeria's economy is struggling as the new currency redesign policy mopped up over 70% of cash in the country and caused an estimated loss of 20 trillion Nigerian nairas.

A report suggested last month that the unemployment rate in Nigeria had increased by 37.7% as of the previous year and was expected to increase to 40.6% this year.

Considering the economic crisis in the country, it makes sense that the government has approved the new policy of blockchain technology to improve their GDP in the next 10 years.

Like Nigeria, other countries like the United Kingdom, Switzerland, Estonia, Singapore, United Arab Emirates and Denmark have also adopted blockchain technology at the national level.