- Nigerium is meant to protect the country’s data and improve national security
- A steering committee set up for the indigenous blockchain development
- Nigeria launched eNaira on a private blockchain run on Hyperledger Fabric in 2021
Nigeria’s National Information Technology Development Agency (NITDA) has said it is ready to develop an indigenous blockchain called Nigerium. NITDA says it will use the technology to protect the country’s data and improve national security.
According to NITDA’s Director General, Kachifu Abdullahi, the agency has already set up a steering committee, ready to consult widely and develop a strategic and innovative developmental roadmap.
Abdullahi made this plan known when a delegation from the University of Hertfordshire Law School, led by Chanu Kuppuswamy, visited him in Abuja, Nigeria’s capital.
During a presentation, on the need for indigenous blockchain for Nigeria, Kuppuswamy said Nigerium will be a fundamental infrastructure necessary for creating a new registry for Nigeria and Nigerians.
According to Kuppuswamy, Nigeria is subject to the decisions of foreign developers who are not constrained by Nigerian laws when it uses established blockchain platforms like Ethereum. The delegation suggested creating a blockchain-like system in Nigeria to facilitate national control and decision-making.
“What we are saying in essence is that you have to plan ahead”, Kuppuswamy said. “They always say technology is always ahead and regulation laws always lagging behind but here we are thinking ahead. We do not want problems of seeing the people and government helpless about all their information being put on a particular product which then can be controlled by any foreign product.”
After Kuppuswamy’s presentation, Abdullahi explained that “We don’t want it to be seen as NITDA to be working within a silo, or you impose something on other members. So we can schedule a meeting with the steering committee members and you present the white paper to them. And when it’s adopted you can bring it to us for implementation. I want us to strengthen the partnership.”
“Failed CBDC (eNaira) and policy implementation
Blockchain is not new in Nigeria. There is already a legal framework for blockchain in the country: in 2023, the Nigerian government approved the national blockchain policy.
Recall that on July 4, NITDA announced that it had concluded plans to establish research centers across the country for blockchain and other new technologies. And now the development of Nigerium.
However, Nigeria has not been outstandingly successful in the implementation of policies.
In 2021, the Nigerian government launched a central bank digital currency (CBDC) called the eNaira on a private blockchain run on Hyperledger Fabric. It was received with optimism at the moment, given that Nigeria became among the first countries in the world to successfully launch CBDC. However, three years down the line, eNaira has failed to live up to its bidding.
KuCoin to charge 7.5% VAT on trading fees for Nigerian users
Meanwhile, TheRadar earlier reported that KuCoin, one of the leading crypto exchanges used by Nigerians, has said it would begin to charge a 7.5% Value Added Tax (VAT) fee on trades executed by its users whose Know Your Customer (KYC) is registered in Nigeria.
In a post on X, the exchange described it as a “regulatory update that impacts our users from Nigeria” and stated that the new measure took effect on July 8, 2024.
