Nigeria may miss out on significant economic gains as the government prioritizes the budding digital asset sector over the implementation of the National Blockchain Policy, prompting industry leaders to question its real progress.
The National Blockchain Policy was launched in 2023 under former President Muhammadu Buhari, but its execution has since stalled, with policymakers focusing more on providing investors a clear regulatory framework for digital assets and cryptocurrencies.
Crypto Bootcamp Community founder Obinna Iwuno lauded the new administration of President Bola Ahmed Tinubu for regulating the digital asset sector by recently signing the Virtual Assets Executive Order and implementing the Investments and Securities Act (ISA) 2005, which would eradicate institutional silos and provide robust consumer protection.
However, he expressed dismay at the lack of progress in enacting the National Blockchain Policy at a time when blockchain technology is being viewed globally as a critical infrastructure for digital transformation, Business Day reported.
“There has been no implementation. We thought that with the inception of this administration, it was going to be accelerated, but instead, what we have witnessed is a stalling,” Iwuno said, adding that shoving the blockchain policy into the back door puts Nigeria at a disadvantage.
He noted that Nigeria had a potential leadership role in blockchain innovation, as it is the only country in Africa to have passed a national blockchain policy, but said that failing to capitalize on this weakens its position as a possible blockchain hub.
The lack of progress in the policy’s implementation made Iwuno question whether the government is carefully setting its pace or if the regulation has entirely shut down.
“There needs to be much more focus on blockchain because of how it can revolutionise our economy,” he said, arguing that blockchain technology has far broader applications than what digital assets can offer.
“Blockchain is an entire system that can touch every fabric of our economy and society. From oil and gas to mining, governance, healthcare, education, public service, infrastructure, supply chains and agriculture, virtually every sector stands to benefit if the policy is fully implemented,” Iwuno explained.
The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) also lamented the government’s inaction, previously warning that the country may lose an estimated $2 trillion in long-term economic value if the policy remains idle.
Despite rallying behind the blockchain policy push, Avanor Labs founder and chief executive Bobola Odebiyi was quick to point out that its realization will not be easy, noting that the government will have to work on developing institutions, gathering necessary funding, and creating public-private partnerships to support the vision.
“Policy announces ambition. Infrastructure proves whether that ambition is real,” he said.
Meanwhile, as Nigeria’s crypto push brings clarity to its digital asset sector, the country is losing ground to rival markets such as Kenya, South Africa, and Ghana, which many industry players view as having more accommodating ecosystems for innovation.
According to market observers, many investors are choosing Kenya following its decision to lower its capital requirement for stablecoin issuers, while crypto asset service providers are now under financial supervision in South Africa. Ghana, on the other hand, is laying the groundwork to advance legislations that would support new ideas and aid tech startups.
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