- The National Information Technology Development Agency (NITDA) is considering developing an indigenous blockchain named Nigerium, aimed at protecting the country’s data and promoting national security.
- The proposed project was disclosed as NITDA’s Director General, Kashifu Abdullahi received delegates from the University of Hertfordshire Law School in Abuja.
This development comes just a few days after NITDA unveiled plans to establish research centres for blockchain technology and other emerging technologies across the six geopolitical zones in the country.
The Nigerian government approved the national blockchain policy in 2023, providing a legal framework for the adoption of blockchain in the country. Now, a delegation is proposing that the country develop a home grown blockchain.
Recall that Nigeria launched the eNaira, a digital currency, in 2021 on a private blockchain run on Hyperledger Fabric. However, it has struggled to drive adoption for the digital currency despite efforts, including partnerships.
The University of Hertfordshire Law School delegation, led by Chanu Kuppuswamy, emphasising the importance of Nigeria developing its own indigenous blockchain technology, mentioned that it would ensure that Nigeria's data and people's information are not controlled by foreign co-developers who may not have Nigeria's interests at heart.
Per Kuppuswamy, using existing blockchain platforms like Ethereum means that Nigeria is subject to the decisions of foreign developers, who are not bound by Nigerian laws. The delegation recommends developing a Nigerian equivalent of blockchain, which would allow for control and decision-making within the country. This would require planning ahead to avoid potential problems and ensure that Nigeria's information and data are secure and under its control.
The delegation also explained the need for a "data embassy" for Nigeria, which is a server hosted in a third-party country to back up and protect the country's data. According to them, this is necessary to ensure digital continuity, as data can be vulnerable to attacks, natural disasters, and cyber threats. A data embassy would be regulated by Nigerian law, and the country would partner with the host country to ensure security and control over their data, the delegation noted.
Additionally, the group emphasised the need for synergy between government departments to explore how blockchain services can be harmonised for interdependency between agencies.
Despite the Nigerian government's advancements in Blockchain technology, it has imposed stringent regulations on the crypto environment, affecting service providers. In addition to its legal disputes with Binance, which it holds accountable for currency issues, another global crypto exchange, KuCoin, has begun charging a value-added tax (VAT) of 7.5% on crypto trades on its platform.
Meanwhile, Ghana is already gearing up to become the first blockchain-powered government in Africa, aiming to digitise government services and make government data secure and tamper-proof.
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