Nigeria’s Minister of Communications and Digital Economy, Isa Pantami, announced on May 3rd that the Nigerian Federal Government has passed a “national blockchain policy.” According to Pantami, the new policy was developed in collaboration with 56 Nigerian institutions and personalities, making it a product of widespread consultations. The minister believes that the approval of the national blockchain policy for Nigeria is a significant milestone for the country’s blockchain industry.
National Blockchain Policy to Institutionalize Blockchain in Nigeria
Isa Pantami stated that the national blockchain policy institutionalizes blockchain technology in Nigeria with all its components and types. After the approval of the policy, the country’s Security Council and the National Information Technology Development Agency (NITDA) will work together to develop regulatory instruments for all sectors.
This policy will give players in the blockchain industry official backing from the government. The policy’s announcement has created hope for Nigerian cryptocurrency traders and enthusiasts who have suffered from the Central Bank of Nigeria’s (CBN)’s crypto directive.
CBN Crypto Directive and the Future of Private Digital Currency
Despite the new policy, Lucky Uwakwe, the founder of the technology service delivery company Sabi Group, believes that the CBN is unlikely to reverse its stance on privately issued digital currency. Uwakwe says that the central bank operates independently, and even with the executive policy passed by the Federal Executive Council, they still have the power to continue to maintain the law of CBN crypto restriction.
The Sabi Group founder stated that while the announcement excites the blockchain industry participants, players in the crypto space fear that the new policy alone will not force the CBN to change its position on privately issued digital currency. Uwakwe asserts that the CBN’s crypto instruction may only be canceled when the CBN “deletes” the directive on February 5, 2021.
Benefits and Limitations for the Blockchain Industry and Crypto Traders
The benefit of the Nigerian Federal government’s approval of the “national blockchain policy” is that it provides official recognition and institutionalization of blockchain technology in Nigeria. The policy is a product of consultations with 56 institutions and personalities, which suggests that various players in the blockchain industry now have the official backing of the government.
This gives hope to Nigerian crypto traders and enthusiasts, as it signals a shift in the government’s disposition towards technology that underpins cryptocurrencies. The new policy also suggests that the technology is “here to stay,” which could attract more investment in the blockchain industry in Nigeria.
However, while the announcement is set to excite the blockchain industry participants, players in the crypto space fear that the new policy alone will not force the CBN to reverse its position on privately issued digital currency. Nonetheless, the government’s blockchain policy provides a step forward in providing regulatory instruments for all sectors in Nigeria.
Final Thoughts
The adoption of national blockchain legislation by the Nigerian Federal Government is a key step toward Nigerian instituting blockchain technology. The policy’s development through consultations with 56 Nigerian institutions and personalities shows the government’s commitment to the technology’s growth and development. However, the policy’s impact on the CBN’s crypto directive remains to be seen, and players in the crypto space are still unsure if this announcement will change anything.