FG's Recent Approval Of Blockchain Policy: A Commendable Step

After what seemed like unnecessary foot-dragging, the Federal Government of Nigeria, on Wednesday, approved the National Blockchain Policy.

This was revealed by the Minister of Communications and Digital Economy, Isa Pantami, during the Federal Executive Council meeting held at the State House in Abuja. 

In a statement signed by the Senior Technical Assistant, Research and Development to the Honourable Minister of Communications and Digital Economy, Dr Femi Adeluyi, the minister disclosed that the activities of the policy would be coordinated by the National Information Technology Development Agency, under the supervision of the Federal Ministry of Communications and Digital Economy.

The National Blockchain Policy for Nigeria aligns with the National Digital Economy Policy and Strategy which was unveiled and launched by the president, Major Gen. Muhammadu Buhari (retd) on November 28, 2019.

The policy was developed by the Federal Ministry of Communications and Digital Economy, in line with the 7th Pillar of the NDEPS, which focuses on Digital Society and Emerging Technologies.

An Overview of Blockchain History

For those unused to blockchain technology, blockchain is a distributed ledger technology that enables secure, transparent, and immutable transactions.

It is a decentralized system that allows for the secure storage and transfer of digital assets without the need for a central authority.

This way, the technology is used to create digital records of transactions that are stored on a distributed ledger, which is shared among a network of computers. 

Blockchain technology was first introduced in 2008 as part of the Bitcoin protocol. 

Since then, blockchain technology has been adopted by a variety of industries and organizations and has become an official instrument in many countries ever since.

Why Some Countries May Struggle to Have a Blockchain Policy in Place

Some countries may be hesitant to have a blockchain policy because of the lack of understanding of the technology and its implications.

At the heart of this resistance may be the decentralised nature of blockchain that rules out meddlesomeness by state actors.

Additionally, there may be concerns about the security of the technology, as well as the potential for misuse or abuse.

Moreover, some countries may be concerned about the potential for blockchain to disrupt existing economic and political systems. 

In other contexts, there are also concerns about the potential for blockchain to be used for illegal activities, such as money laundering or tax evasion.

A Glimpse at a Few Blockchain Benefits from FGN's Perspectives

According to data by PricewaterhouseCoopers, Blockchain Technologies could boost the global economy with $1.76 trillion by 2030.

The statement partly reads, “Blockchain Technology has the potential to revolutionise many industries, from finance and healthcare to transportation and supply chain management.

“Blockchain Technology makes transactions more transparent, trustworthy, and efficient and it can result in considerable cost savings and better user experiences.

“Furthermore, Blockchain Technology can boost innovation, improve public services, create job opportunities, and drive economic growth.

“The vision of the Policy is to create a Blockchain-powered economy that supports secure transactions, data sharing, and value exchange between people, businesses, and government, thereby enhancing innovation, trust, growth, and prosperity for all.

“The implementation of the National Blockchain Policy will have a positive effect on both the public and private sectors of the country.

“These benefits have inspired governments around the world to explore ways to leverage this important technology.

“With the approval of the National Blockchain Policy, Nigeria joins the United Kingdom, Switzerland, Estonia, Singapore, United Arab Emirates, Denmark, and other leading technology countries in adopting Blockchain Technology at the national level.”

The Federal Executive Council (FEC) of Nigeria, in regard to the recent approval of the blockchain policy, further directed relevant regulatory bodies to develop regulatory instruments for the deployment of Blockchain Technology across various sectors of the economy. 

These regulatory agencies include NITDA, the Central Bank of Nigeria, the National Universities Commission, the Securities and Exchange Commission, and the Nigerian Communications Commission, among others.

The FEC also urged all other Federal and State Government institutions, as well as the private sector to leverage Blockchain Technologies in education, health, security, agriculture, and finance, among many other sectors in view of the fact that deploying these applications will further support the implementation of the NDEPS for a digital Nigeria.

Furthermore, a multi-sectoral Steering Committee has also been approved to oversee the implementation of the policy.

Conclusion

While the blockchain policy approval by the FGN is highly applauded, relevant authorities must be awake to the fact that many countries are already well ahead in tapping into the dividends of this amazing technology.

This is not the time for buck-passing and unnecessary red tape. With a full-scale adoption of blockchain technology, a lot of the endemic corruption in our system may be checkmated.