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National Blockchain Policy of Nigeria Gets Government Approval

National Blockchain Policy of Nigeria Gets Government Approval

The Federal Government of Nigeria announced the approval of the national blockchain policy on May 3. The minister of communications and digital economy, Isa Pantami, said the new policy is the outcome of consultations with 56 institutions and personalities. Lucky Uwakwe, the founder of the technology service delivery company Sabi Group, said the Central Bank of Nigeria (CBN) is unlikely to reverse its stance on privately issued digital currency.


Image of 3 Bitcoins with the national flag of Nigeria in the background


Blockchain Policy: An Outcome of Widespread Consultations

The Nigerian Federal Government recently approved a national blockchain policy. Isa Pantami, the minister of communications and digital economy, described the new policy as the outcome of widespread consultations with some 56 Nigerian institutions and personalities. Speaking on the occasion of Nigeria’s blockchain industry, after a Federal Executive Council meeting chaired by outgoing President Muhammadu Buhari, Pantami said:

"With the approval of the national blockchain policy for Nigeria today, we can safely say that blockchain technology with all its components and types has been institutionalized in the country."

The Security Council and the National Information Technology Development Agency (NITDA) have been asked to jointly develop and formulate regulatory instruments for all sectors, the minister said.

Central Bank of Nigeria’s Crypto Ban Directive

The announcement has led to widespread speculation in Nigeria that the new policy signals a shift in the outgoing government’s disposition towards the blockchain technology that underpins cryptocurrencies. The new policy also provides hope to Nigerian crypto traders and investors reeling from the Central Bank of Nigeria’s crypto ban directive.

Lucky Uwakwe, the founder of the technology service delivery company Sabi Group, said the new policy will boost the confidence of various players in the blockchain industry with official government support. Uwakwe also said the government's approval of the new policy is an indication that the technology is "here to stay."

However, the Sabi Group founder explained that while the announcement is set to excite blockchain industry participants, players in the crypto space fear that the new policy is unlikely to impact the CBN's decision to reverse its decision on privately issued digital currency.

"The central bank is empowered by the law to act independently. If the CBN decides to see this executive policy that has been passed by the Federal Executive Council as a threat to financial stability, they still have the power to continue maintaining that law," Uwakwe said. The only way the CBN’s crypto directive can be removed is when the central bank itself decides to change or remove the February 5, 2021 directive.

What is your take on the government's approval of the national blockchain policy in Nigeria? Please post your comment.

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