Nigeria: Proposed Strategy for Blockchain/ Crypto National Adoption

The wind of cryptocurrency and blockchain is blowing very fast. We see that Bitcoin adoption is already happening as many companies like Microstrategy, Squares etc are recently accumulating. Of recent also, Turkey made a move on Bitcoin following the downturn of their economy. It's only disastrous to not join in the adoption of bitcoin and cryptocurrency in general. The future is bright for bitcoin and many are already speculating that it might hit $15k by November ending.

I was very excited to see Nigeria making plans and setting up strategies for a mainstream adoption of cryptocurrency in the nation after it was being termed as legal by the SEC. In this regards, a proposed draft title "National Blockchain Adoption" was being developed by the National Agency for Information Technology Development (NITDA) together with other bodies, in view of encouraging the adoption of cryptocurrency with the vision of creating a “Digital Nigeria“.

As we all know, blockchain has emerged as a technology that has the potential to become a transformative force in multiple aspects of government and private sector operations. Its potential has been recognized globally, with a variety of international organisations and technology companies highlighting the benefits of its application in reducing costs of operation and compliance, as well as in improving the efficiency and security of business processes. It is because of this that Nigeria needs a national adoption of blockchain and cryptocurrency.

The Federal Ministry of Communications and
Digital Economy (FMoCDE) developed/ proposed national crypto adoption policy and strategy is
anchored on 8 pillars. These eight pillars are:

• Developmental Regulation
• Digital Literacy & Skills
• Solid Infrastructure,
• Service Infrastructure,
• Digital Services Development &
  Promotion
• Soft Infrastructure
• Digital Society & Emerging technologies
• Indigenous Content Development and Adoption.

More so, the primary objective of the Nigerian Blockchain Adoption Strategy is to identify and utilize the opportunities provided by Blockchain technologies in order to strengthen the country's security on cyberspace as well as stimulate the growth of the economy. Also, the goal of this strategy is to key into the Economic
Recovery and Growth Plan of the Federal Government by increasing the
contribution of ICT to the Gross Domestic Product.

Furthermore, the document outlined the following 5 strategic objectives which includes; Regulatory Oversight, Stimulate innovation and entrepreneurship, Security, trust, and transparency in value chain, Investment opportunities/ job creation and governance. It was also noted that this developed strategy puts into perspective existing government’s policies,
strategies, and frameworks and takes them into consideration in the design of the initiatives outlined.

The body then proposed that the below initiatives will aid in the adoption of blockchain across the nation.

1. Establishment of Nigeria Blockchain Consortium
2. Strengthening of the Regulatory and legal framework
3. Focus of the provision of National Digital Identity.
4. Promotion of Blockchain digital literacy and awareness.
5. Creation of Blockchain business incentive programmes.
6. Establishment of a national blockchain sandbox for proof of concepts and pilot implementation.

According to the draft, a Nigeria Blockchain Consortium (NBC) is proposed to be constituted and prioritized with the primary objective to drive these initiatives and will initially be expected to consider how to effectively apply the use of this technology in public sector processes and services. The Blockchain Task Force (BTF) is to be championed by the National Digital Economy Council (NDEC) and membership is to be drawn from key stakeholder groups, relevant government agencies, and the private operators. The BTF is to be championed by NITDA being the regulatory arm for information technology in Nigeria. The NBC may be guided by certain criteria given it a clear direction and purpose to ensure effective implementation of this strategy towards achieving a digital economy.

Also, the Digital Identity initiative is aimed at promoting the establishment of a national digital identification framework as it is a key driver to a digital economy. A program that would allow more government services to be
available to people and businesses digitally at any time. The framework is to include everything from the policy and processes to the technology and systems. Digital Identity is a huge and complex challenge that involves multiple aspects. It touches upon areas such as governance, policy, operation, technology, and law. Therefore, it is necessary that national leaders and policy makers deeply understand the topic.

In conclusion, the following recommendations were made:

1. Regulatory and policy considerations for evolving a vibrant
   blockchain ecosystem
2. Creation of a national infrastructure for deployment of blockchain
   solutions that integrate identity and incentive platforms.
3. Promotion of research and development in blockchain, in
   addition to focus on skilling of workforce and students
4. Creating a bimodal procurement process to enable government
   agencies to adopt blockchain solutions

For full information about the proposed adoption strategy for blockchain and cryptocurrency, you can read here:

https://technologytimes.ng/wp-content/uploads/2020/10/DRAFT-NATIONAL-BLOCKCHAIN-ADOPTION-STRATEGY.pdf