Nigeria Approves Policy to Build a Blockchain-Powered Economy

The executive branch of the Nigerian government approved the country’s National Blockchain Policy, according to a recent press release. The African country expects to create a blockchain-powered economy by implementing the policy and leveraging the technology’s accelerating growth.

Blockchain Could Significantly Boost Global GDP Growth

The federal government of Nigeria approved the implementation of the National Blockchain Policy, hoping to tackle the opportunities presented by rapid growth in the blockchain industry. The policy got a green light from the Federal Executive Council in Abuja on Wednesday, May 3.

In the press release announcing the approval, the country’s Federal Ministry of Communications and Digital Economy (FMCDE) cited data from a PricewaterhouseCoopers (PwC) report. The report expects the burgeoning blockchain technology to contribute up to $1.76 trillion to the global gross domestic product (GDP) by 2030, representing around 1.4% of the total global GDP.

FMCDE said in the announcement it has developed the National Blockchain policy on behalf of Nigeria’s federal government “in line with the 7th Pillar of the NDEPS, which focuses on Digital Society and Emerging Technologies.”

The primary objective of the policy is to build a blockchain-powered economy that serves as a foundation for “secure transactions, data sharing, and value exchange between people, businesses, and Government, thereby enhancing innovation, trust, growth, and prosperity for all,” FMCDE added in the release. It also said it expects the policy to leave a positive impact on both the public and private sectors of the nation.

Nigeria’s Ever-Growing Interest in Blockchain Technology

The National Blockchain Policy’s approval does not surprise, given Nigeria’s profound interest in crypto and blockchain technologies. In 2020, Nigeria published a draft of the blockchain adoption strategy, saying that blockchain and distributed ledger technologies (DLT) could streamline the development of the country’s digital economy.

The West African nation has also been one of the leaders in the global central bank digital currency (CBDC) race, with the adoption of the eNaira surging by 63% since its launch in October 2021. Many global leaders have ramped up their CBDC efforts over the past year, including Japan, India, and Brazil.

Earlier this month, Nigeria’s Securities and Exchange Commission (SEC) said it may approve tokenized coin offerings on licensed digital exchanges to drive market participation in the country. However, the securities regulator is currently considering allowing offerings of coins backed by assets like property and equity, but not crypto.

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