Nigeria intends to begin a blockchain system to serve local requirements and improve its “data sovereignty.” Named Nigerium, the blockchain is going to be constructed by the nation’s National Technology and Information Development Agency (NITDA).
A representative for NITDA told reporters on Monday that it has no timeline for implementation and development. The committee is still discussing that with stakeholders, “said Hadiza Umar, NITDA’s director of business affairs and external relations. “Even if a decision is reached, it can not be assured the name will be Nigerium.”
Nigerium is anticipated to solve numerous data security and transparency issues and facilitate faster and secure transactions. The blockchain will “ensure secure and transparent transactions across sectors,” NITDA Director General Kashifu Inuwa said.
It might be essential to Nigerian digital economy to encourage innovation in finance, health and public services. The country’s cryptocurrency business may be worth $400 million.
The launch comes in line with Nigeria’s national Blockchain policy to develop a digital economy. In May last year, Nigeria announced a national blockchain strategy. The policy would “create a blockchain powered Economy which supports safe transactions, data sharing and value exchange” the Minister for Communications stated.
The plan contrasts with the country’s earlier crackdown on the digital assets industry. Nigeria’s central bank (CBN) and the Security & Exchange Commission had warned of the dangers of digital currencies. They stated that the anonymity afforded by virtual currencies might be exploited to propagate fraud, terrorism funding and currency rate manipulation.
An indigenous blockchain like Nigerium will be “a significant step to information sovereignty and trust in electronic transactions within Nigeria,” said Chanu Kuppuswamy, a blockchain specialist with the University of Hertfordshire Law.
Kuppuswamy led a faculty team that suggested developing the blockchain. She argued Nigerium will allow Nigeria to adapt and customize the technology to its requirements and be constructed in line with its laws.
Kuppuswamy didn’t immediately return a request for comment from reporters.
Nigerium development is also viewed as a move towards reducing dependence on foreign blockchain solutions. But Umar said the blockchain that’s developed will not necessarily address data sovereignty in itself. Rather, measures will be put in the eventual blockchain solutions to preserve data sovereignty, “she told reporters.
