Nigeria’s push to embrace blockchain technology faces significant challenges due to unresolved regulatory uncertainties. The President of the Stakeholders in Blockchain Technology Association of Nigeria, Obinna Iwuno, raised these concerns in a recent discussion with The PUNCH obtained by REMOTEWORKBUSINESS.
In May 2023, Nigeria introduced a national blockchain adoption strategy to foster innovation, establish legal frameworks, and encourage public-private partnerships. However, despite these efforts, the regulatory landscape remains unclear, causing hesitancy among potential adopters.
In May 2024, the National Information Technology Development Agency (NITDA) reconstituted the National Blockchain Policy Steering Committee to assess blockchain trends and include new stakeholders. As part of this initiative, NITDA recently launched “Nigerium,” an indigenous blockchain platform aimed at enhancing data security and protecting national interests.
Iwuno highlighted that Nigeria’s evolving regulatory environment for blockchain and cryptocurrency is still marked by uncertainty. The lack of a comprehensive framework has hindered the widespread adoption and integration of blockchain technology in the country.
While the Central Bank of Nigeria has lifted restrictions on banks’ dealings with cryptocurrencies, allowing virtual asset service providers to operate accounts, banks are still prohibited from holding or trading cryptocurrencies directly. Meanwhile, the Securities and Exchange Commission is working on regulatory measures for crypto assets, but no licenses have been issued, leaving the industry in a state of flux.
Iwuno pointed out that other countries have faced similar challenges but developed effective strategies to overcome regulatory uncertainty. He cited Estonia’s clear legal structures, Singapore’s progressive regulatory environment, and Switzerland’s classification system for cryptocurrencies and tokens as models Nigeria could emulate.
Chimezie Chuta, Chairman of the National Blockchain Policy Implementation Steering Committee, suggested that Nigeria should consider adopting consortium or federated blockchains. This approach, he argued, would provide controlled access, enhance collaboration among stakeholders, and ensure better regulatory compliance, thus paving the way for more secure and efficient blockchain adoption in Nigeria.