The National Information Technology Development Agency (NITDA) of Nigeria has disclosed plans to develop an Indigenous blockchain system, codenamed ‘Nigerium’ to address local needs and boost data sovereignty in the nation.
NITDA Director-General, Kashifu Inuwa stated that the proposed blockchain would “ensure secure and transparent transactions across various sectors.”
According to local reports, the system is expected to play a significant role in Nigeria’s digital economy, potentially facilitating the growth of finance, healthcare, and public services in Nigeria’s digital economy.
The concept for this Indigenous blockchain was proposed by a delegation from the University of Hertfordshire Law School, led by blockchain expert Chanu Kuppuswamy, who hopes that Nigeria will be able to personalize its own technological requirements for the technology as well as adhere to local laws and regulations.
Moreover, this initiative aligns with Nigeria’s national blockchain policy, launched in May 2023. The policy aims to foster a blockchain-powered economy supporting secure transactions, data sharing, and value exchange among individuals, businesses, and government entities.
Additionally, the development of “Nigerium” is expected to have a major impact on national security. Nigeria aims to enhance its cyber defense capabilities by creating a secure and autonomous blockchain to protect critical infrastructure from potential threats.
Furthermore, the inherent transparency of blockchain technology could enhance data integrity as well as accountability thereby potentially lowering risks regarding data breaches or fraud.
However, NITDA spokesperson Hadiza Umar emphasized that the project is still in the discussion phase with stakeholders. There is currently no definitive timeline for its development, and the final name of the blockchain system has not been confirmed.
The move towards an indigenous blockchain represents a shift from Nigeria’s previous cautious stance on digital assets. Previously, the country’s central bank and securities regulator had expressed concerns about potential risks associated with cryptocurrencies.
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