Nigeria’s National Information and Technology Development Agency plans to build a national blockchain network, dubbed “Nigerium,” designed to meet local needs and strengthen the nation’s data sovereignty.
The agency, known as NITDA, stressed the country's need for its own blockchain to Addressing challenges related to data security and transparency in the country.
Hadiza Umar, Head of Corporate Affairs and External Relations at NITDA, said the creation of a national blockchain will help provide a more efficient way of transacting and managing data, thereby ensuring that transactions are secure, accessible and transparent across various sectors.
According to Umar, Nigeria’s blockchain could be called “Nigerium,” although this is not a final name.
Umar stressed that there is no guarantee that the final name of the blockchain the nation plans to build will be Nigerium and that the agency and stakeholders are currently discussing the possibility and feasibility of creating this blockchain. Umar also indicated that there is no set timeline yet for the development or implementation of this blockchain.
Blockchain technology plays a key role in Nigeria's development
“Nigerium” could play a crucial role in Nigeria’s digital economy, driving innovation in key sectors of the country such as finance, education, healthcare and public services.
According to NITDA's statements, the creation and launch of its own blockchain aligns with the country's national blockchain policy, which seeks to foster a clear and solid environment for the development of emerging technologies and the digital economy.
In May last year, Nigeria launched a National policy focused on blockchain technology, in order to speed up the transition to a digital economy powered by this technology, supporting secure transactions, data transfer and value exchange between people, businesses and government. This was highlighted by the Ministry of Communications and Digital Economy of Nigeria, when announcing the approval of the country’s national blockchain policy.
This year Nigeria also committed to Bringing clarity to the cryptocurrency market to foster its integration with the national banking system. The country's president, Bola Tinubu, assured that legalizing cryptocurrencies and digital assets will help strengthen the Nigerian economy and that blockchain technology will stimulate the country's economic and financial growth.
These initiatives contrast with Nigeria’s previous crackdown on the cryptocurrency and digital asset industry. In recent years, Nigeria’s central bank and the Securities and Exchange Commission had been warning about the risks of trading crypto assets, which could encourage fraud, terrorist financing, and volatility. However, authorities have been reconsidering this negative approach as cryptocurrency adoption grows in the country and blockchain technology innovation spreads around the world.
According to professional services firm PwC, blockchain technology could boost the global economy by $1,76 trillion by 2030.
Security and data sovereignty
In addition to the initiatives mentioned above, the development of Nigerium is also seen as a strategic move to create a digital economy that will have a positive impact on both the public and private sectors in Nigeria. Furthermore, this initiative is seen as key to reducing the nation’s dependence on foreign blockchain technologies. In this regard, Umar underlined the potential that blockchain has shown to revolutionize many sectors.
Experts say building a proprietary blockchain represents an important step towards achieving data sovereignty and trust in digital transactions within Nigeria.
