The Nigerian Federal Government’s initiative to develop a home-grown blockchain infrastructure has received significant support from the National Blockchain Policy Implementation Steering Committee. Two weeks ago, the government unveiled its plans to build a home-grown blockchain, emphasizing the importance of data security and privacy in the effort.
Support from key stakeholders
The committee’s chair, Chimezie Chuta, expressed strong support for the initiative in a discussion with The Punch. Chuta deemed the initiative of a national blockchain infrastructure an important and positive step. He highlighted that countries such as India, China, the UAE, South Korea and Singapore have already built blockchain infrastructure, suggesting that Africa’s third-largest economy should not lag behind.
Naming the National Blockchain
Chuta suggested several names for Nigeria’s blockchain, including “Nigereum,” “NaijaChain,” “NijaBlock” and “AfriLedger,” drawing parallels with the Indian blockchain known as “IndiaChain.” He advocated for the adoption of a consortium or federated blockchain model, explaining that this provides controlled access, encourages collaboration among parties, increases scalability and efficiency, supports smart contracts and improves regulatory compliance. He noted that this type of blockchain would be managed by a group of organizations rather than a single organization.
Strategic Implementation Partner
Chuta positioned Galaxy Backbone, the Nigerian government agency responsible for providing ICT infrastructure and services, as the best suited organization to host a major blockchain infrastructure. Highlighting Galaxy Backbone’s capabilities and existing role in Nigeria’s ICT landscape, Chuta argued that the company should be formally appointed as a strategic partner in the implementation of the national blockchain infrastructure.
Comparative analysis and future prospects
Chuta compared Nigeria’s blockchain aspirations with those of other countries, highlighting the potential for significant advances in data security, economic efficiency and technological innovation. By establishing a national blockchain, Nigeria aims to join the ranks of countries that have successfully integrated the technology into their national framework, enhancing its international competitiveness and technological sovereignty.
Wider impacts on the Nigerian economy
The push for a national blockchain infrastructure is seen as a move that could bring significant benefits to the Nigerian economy. The adoption of such technology is expected to streamline various sectors, increase transparency, and promote a more secure and efficient data management system, which could attract foreign investment and boost confidence in Nigeria’s tech capabilities.
Additionally, the development of a national blockchain could provide a platform for different industries to innovate and collaborate more effectively. By supporting smart contracts and providing a scalable, efficient infrastructure, blockchain can facilitate new business models and drive economic growth.
Meeting regulatory and compliance challenges
Chuta’s consortium-based blockchain model also addresses regulatory and compliance challenges more effectively, by involving multiple stakeholders in governance, ensuring that the blockchain operates within a framework that supports regulatory oversight and compliance, making it more trustworthy and reliable.
Conclusion: A strategic move towards technological advancement
The Nigerian government’s initiative to establish a national blockchain infrastructure represents a strategic move to embrace advanced technology for the development of the nation. With strong support from key stakeholders and the potential for significant economic and technological benefits, the initiative is poised to position Nigeria as a leader in blockchain technology within Africa and beyond. As the country moves forward with this ambitious project, there will be a focus on ensuring the infrastructure is robust, secure, and capable of meeting the demands of a modern digital economy.
