Nigeria plans to establish a blockchain system to meet local needs and enhance its “data sovereignty”. The blockchain, nicknamed Nigerium, will be built by the National Information Technology Development Agency (NITDA) of the country.
However, a spokesperson for NITDA told Decrypt on Monday that there is no timetable for its development and implementation.
Hadiza Umar, Director of Corporate Affairs and External Relations at NITDA, said, “The committee is still discussing this possibility with stakeholders. Even if a decision is eventually made, there is no guarantee that the name will be Nigerium.”
Nigerium is expected to address various challenges related to data security and transparency, providing a more secure and efficient way of conducting transactions. Kashifu Inuwa, the Director-General of NITDA, stated that blockchain will “ensure secure and transparent transactions across various sectors”.
It can play a crucial role in Nigeria’s digital economy, driving innovation in finance, healthcare, and public services. The cryptocurrency industry in the country is estimated to be worth $400 million.
The launch of Nigerium aligns with Nigeria’s National Blockchain Policy, which aims to foster a robust digital economy. The country introduced the policy in May last year. The Ministry of Communications and Digital Economy stated at the time that the policy would “create a blockchain-driven economy that supports secure transactions, data sharing, and value exchange among people, businesses, and governments”.
This initiative stands in stark contrast to China’s crackdown on the digital asset industry. The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission have previously warned that the anonymity provided by cryptocurrencies could facilitate fraud, terrorism financing, and volatility.
This move comes after the country has shown increasing interest in blockchain technology, as indicated by previous efforts to regulate digital assets and integrate them into the economy. The Securities and Exchange Commission has set the end of July as the deadline for cryptocurrency companies to register or face enforcement actions.
Chanu Kuppuswamy, a blockchain expert from the University of Hertfordshire Law School, said, “The development of local blockchains like Nigerium is a significant step for Nigeria to achieve data sovereignty and foster trust in digital transactions”.
Kuppuswamy’s university team proposed the idea of developing the blockchain, believing that Nigeria will allow for adjustments to the technology based on its needs and in accordance with its existing laws.
Kuppuswamy did not immediately respond to Decrypt’s request for comment.
The development of Nigerium is also seen as a strategic move to reduce dependence on foreign blockchain technology. However, Umar insists that the blockchain to be developed may not necessarily focus on data sovereignty itself.
She told Decrypt, “Instead, measures will be implemented in the final blockchain solution to uphold data sovereignty”.
