Nigeria's tech agency plans indigenous blockchain Nigerium

AFRICAN BUSINESS AND ECONOMYJuly 10, 2024 at 9:40 AM UTC

TLDR

NITDA plans to develop 'Nigerium', an indigenous blockchain for Nigeria's data and national security.
The initiative addresses concerns of foreign-controlled blockchain technologies like Ethereum.
Collaboration between private and public sectors will drive development of Nigerium for enhanced data protection.

The National Information Technology Development Agency (NITDA) has announced plans to develop an indigenous blockchain called 'Nigerium' to protect Nigeria’s data and promote national security.

This initiative was prompted by concerns that popular blockchain technologies like Ethereum are controlled by foreign developers who may not prioritize Nigeria’s interests.

NITDA’s Director General, Kashifu Abdullahi, revealed this during a meeting with the University of Hertfordshire Law School delegates in Abuja, saying that the project would involve collaboration between the private and public sectors to develop this homegrown blockchain technology.

Key Takeaways

The development of an indigenous blockchain may be a significant step towards implementing the propositions in Nigeria's national blockchain policy but this comes amid ongoing crackdowns on crypto usage and adoption by Nigerian authorities. Despite advancements in blockchain regulation, the authorities have maintained a stringent stance on cryptocurrencies. In addition to prolonged legal disputes with Binance, which is accused of Naira manipulation and tax evasion, KuCoin, a prominent crypto exchange, has started imposing a 7.5% value-added tax (VAT) on transactions. This reflects the complex regulatory environment where blockchain innovation is encouraged, but cryptocurrency activities face significant regulatory challenges.

NITDA

Blockchain

Ethereum

Cryptocurrency

Nigeria

Binance

Kucoin