Blockchain Could Have Profer Solution to Nigeria’s Naira Scarcity, Local Experts Say

Blockchain technology has come into focus as a potential remedy for economic challenges in Nigeria and across Africa, with local experts pointing to Nigeria’s currency flow shortage as a case in point.

During the Digital Assets Summit 2023, organized by the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) in Abuja, Nigeria, stakeholders deliberated on the government’s decision to print new naira notes and the country’s recent efforts to promote central bank digital currency (CBDC) adoption, both of which contributed to a scarcity of naira in circulation.

Christopher Eniayemo, a Sahara ICP Hub West Africa co-founder, emphasized that the decision to print new naira notes could have been executed within the decentralized finance (DeFi) ecosystem, enabling active participation from Nigerians and better preparation for the currency transition.

“Introducing blockchain technology to Nigeria and Africa at large will promote the advancement of DeFi and empower citizens to have control over their finances and the economy,”

Eniayemo stated.

Blockchain technology serves as the foundational infrastructure for DeFi, enabling decentralized, transparent, and secure financial operations, all while bypassing traditional financial intermediaries. This empowers users with a range of financial services.

Tinubu’s Campaign Manifesto

However, Nigeria’s current President, Bola Tinubu, introduced a campaign manifesto that, if implemented, could usher in the use of blockchain technology and cryptocurrencies within the nation’s banking and finance sector.

Tinubu’s manifesto proposes a thorough review of the Nigerian Securities and Exchange Commission regulations concerning digital assets, intending to make them more business-friendly.

These new regulations aim to establish a comprehensive framework for overseeing digital assets within Nigeria, including cryptocurrencies and digital tokens.

In 2022, Nigeria implemented restrictions on how much cash individuals and businesses could withdraw from banks and ATMs.

This move was part of an effort to promote a “cashless Nigeria” and increase the utilization of the eNaira, the country’s CBDC.

NB: Any Information provided here is NOT FINANCIAL ADVICE. Do Your Own Research before making any Financial Decisions.