Abdul Muhammed Law Practice
Abdul Muhammed Law Practice’s Lead Lawyer Abdulateef Muhammed breaks down Nigeria’s Blockchain Policy.
Introduction
On May 3, 2023, the Federal Government of Nigeria approved the National Blockchain Policy for Nigeria (“the Policy”).
The Policy recognizes the potential of blockchain to revolutionize many industries from supply chain management, to healthcare, to finance, to transportation and to governance.
Presidential mandate
The Presidential mandate outlines Nigeria’s strategic approach to harnessing the potential of Blockchain Technology (BT) for economic growth and development while emphasizing transparency, efficiency and secure transactions, the policy acknowledges the global trend of integrating BT into various sectors.
Key highlights of the Nigerian National Blockchain Policy are discussed below.
Digital economy growth
The policy acknowledges the significant contribution of the digital economy, particularly the ICT sector, to Nigeria’s GDP and, as such recognizes the need for a National Blockchain Policy to leverage BT for innovation, job creation and economic growth.
Policy framework
The policy introduces the National Blockchain Policy as a roadmap for BT adoption, addressing key issues like governance, interoperability, security and regulatory compliance by directing relevant agencies to develop regulatory instruments and commence immediate policy implementation.
Focus on innovation
The National Blockchain Policy identifies innovation as a critical focus area and, accordingly outlines policy statements to support research, collaboration with industry experts, regulatory sandboxes for startups, education programs and incentives for BT startups.
Blockchain adoption areas
The National Blockchain Policy Approves the adoption of Blockchain in financial services and in government/corporate digital services and recognizes the transformative potential of BT in financial transactions, identity management, land registration, supply chain management and more.
Financial services adoption
The National Blockchain Policy specifically recognizes the potential benefits of cryptocurrencies in fostering BT adoption, and thus aims to establish a regulatory framework for integrating BT into the financial system, ensuring consumer protection and supporting the growth of fintech startups.
Government and corporate services adoption
The National Blockchain Policy identifies BT’s potential in enhancing transparency, accountability and efficiency in government and corporate operations and aims to develop a National Strategy, promote adoption in key areas and collaborate with industry and academia.
Expected outcomes
The policy anticipates outcomes such as the creation of supportive legal frameworks, encouragement of entrepreneurship, increased adoption in the public and private sectors, establishment of BT standards and the promotion of education and awareness.
National Blockchain Infrastructure
The National Blockchain Policy advocates for the creation of a national Blockchain infrastructure to facilitate transactions, encouraging the development of new services and applications.
Conclusion
In summary, the Policy, approved by President Muhammadu Buhari on May 3, 2023, underscores Nigeria’s commitment to embracing BT as a catalyst for innovation, economic growth and the development of a blockchain-powered economy.
Disclaimer: This article provides general information and does not constitute legal advice. Consult with a Nigerian cryptocurrency lawyer, a crypto competent lawyer in Nigeria or other legal professionals for advice tailored to your specific situation.
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