Nigeria Eyes New Regulatory Framework to Boost Crypto and Blockchain Adoption

Nigeria’s Ministry of Finance is collaborating with the Securities and Exchange Commission (SEC), the nation’s capital market watchdog, to provide a new regulatory environment to boost adoption in the blockchain and crypto space.

Nigeria has crafted a name for itself in the crypto sector

Speaking during the Fintech in Nigeria State of Play event, Armstrong Takang, a special adviser in the Finance Ministry, alluded to the fact that a regulatory environment was needed in the blockchain field.

In September, the SEC announced that it was creating a clear crypto trading regulatory framework to protect investors’ interests and ensure transparent transactions. Nevertheless, it cleared the air by stating that the aim was not to stifle innovation or hinder technology but rather create standards that promote ethical practices.

Nigeria has been among the nations in Africa leading the pack in the crypto/blockchain arena. In July, together with other countries like Kenya, South Africa, and Ghana, their weekly Bitcoin (BTC) trading volumes exceeded $1 million showing notable strides in the sector.

Nigerians are fighting inflation with Bitcoin

A recent Paxful study revealed that Nigerians are thinking out of the box by using Bitcoin to deal with the devaluation of the nation’s native currency Naira prompted by factors like the current COVID-19 pandemic. For instance, the devaluation of Naira (NGN) from 2018 till now has seen 380NGN being exchanged for one USD compared to the previous 306 NGN.

Through the National Information Technology Development Agency (NITDA), the Nigerian administration sees Blockchain technology as the stepping stone needed tp help the country generate revenue of between $6 and $10 billion in the next ten years.

The NITDA mandated with spearheading the nation’s digital economy policy stipulated that the target was realistic because Nigeria had a huge potential in the payment and financial services sector.

Moreover, the nation is seen as one of the financial technology (FinTech) hotspots in Africa. With the new crypto and blockchain regulatory guidelines being formulated, Nigeria seeks to continue being one of Africa’s hubs in this field.