The rise of blockchain technology in Nigeria has been met with a mixture of excitement and caution. It is still an emerging technology and there are no laws that mandate the use of blockchain in Nigeria. Yet, the National Information Technology Development Agency (NITDA) has acknowledged the use of this technology and is fostering an enabling environment to encourage its use. For entrepreneurs interested in building blockchain startups in Nigeria, it is imperative to build innovative products that address problems in several important industries and boost the country’s digital economy.
For starters, there are numerous ethical concerns about the use of blockchain technology in Nigeria. Nigerians rely on traditional principles of law and opinions of scholars to determine the legal framework for cryptocurrency use. Additionally, power usage for cryptocurrency mining activities in Nigeria is not a significant concern yet. This could pose a dilemma for entrepreneurs looking to use this technology in their businesses. In addition, some Nigerian law enforcement agencies have been reluctant to accept the use of blockchain in the country because of potential security threats.
While cryptocurrency use is not legal tender in Nigeria, the CBN has warned the public about the risks associated with using this technology in the country. Regardless of the legality of cryptocurrency, it is crucial for users to understand existing laws governing blockchain technology. For example, there are no anti-money laundering provisions in Nigeria. However, some cryptocurrency exchanges, such as Paxful, are licensed by the CBN, proving that they are legitimate.
The first Nigeria Blockchain Summit focused on the local tech ecosystem. Key speakers included Dr. Vincent Olatunji, National Commissioner of the Nigerian Data Protection Bureau, and Professor Umar Garba Danbatta, Chief Executive Officer of the Nigerian Communications Commission. These professionals provided an overview of how blockchain can benefit the country. Ultimately, the event provided insight into the role of Blockchain in Nigeria. And while the first Nigerian Blockchain Summit focused on the local tech ecosystem, it also showcased the promise of the blockchain in the country.
In addition to the ICO, there are other nuances that should be clarified. Regulations on security tokens and initial coin offerings are still in the works in Nigeria. Although the Securities and Exchange Commission (SEC) regulates securities and investments, the Nigerian government has not yet passed a clear regulation on the new technology. However, the Commission has published an exposure draft on crowdfunding, which would govern investments offered through crowdfunding platforms. The Securities and Exchange Commission is expected to issue a rulebook in the future.
In addition to this, the study also proposes policy solutions to promote the adoption of blockchain technology in the built environment in Nigeria. While this study focuses on the built environment, it is also relevant to other parts of the 4IR. It is possible that future studies will further explore other components of 4IR in Nigeria. And it should be noted that it is likely that the recommendations of this study will be considered by other developing countries. That is the primary aim of the paper.