The Nigerian government has approved its national blockchain policy. It aims to institutionalize blockchain technology and its components in the nation.
Nigeria, the most populous country in Africa, is finally ready to bring regulatory clarity to its blockchain industry and lay the foundation for web3 adoption in the oil-rich nation.
Barely a week after the country’s Securities and Exchange Commission (SEC) revealed plans to license fintech firms within its shores to enable them to issue asset-backed tokens, the Nigerian government has introduced a National Blockchain Policy.
Per a report by a local newspaper, the Punch, Professor Isa Pantami, Nigeria’s Minister of Communications and Digital Economy, disclosed during a Federal Executive Council meeting on May 3 that the president Muhammadu Buhari-led government has greenlighted a new blockchain policy for the country.
Is amenable crypto regulation in the works?
The minister noted that the new blockchain policy is a product of consultations with 56 institutions and entities within the country. The policy aims to institutionalize blockchain technology and its components in the Nigerian economy.
“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 minister also stated that the country’s Security Council has mandated the relevant regulatory watchdogs to collaborate with the National Information Technology Development Agency (NITDA) to formulate a regulatory framework for blockchain technology within all sectors of the country’s economy.
The Central Bank of Nigeria (CBN) has barred financial institutions from facilitating crypto transactions since 2021. While the new blockchain policy is a welcome development for the nation, how the authorities will treat bitcoin (BTC) and other blockchain-based assets remains unclear.
whether the regulators will impose exorbitant capital gains taxes on bitcoin and other crypto assets just like India, or it will take a more relaxed and liberal approach towards crypto regulation, remains to be seen.