Nigeria’s President-elect, Bola Tinubu’s manifesto could potentially change the country’s financial landscape by allowing the use of blockchain technology and cryptocurrencies in the banking and finance sector.
The Nigerian President, Bola Tinubu's manifesto advocates for a reform in government policy to encourage use of blockchain technology and crypto assets 🇳🇬 pic.twitter.com/kCuZf8zVgE
— BitKE (@BitcoinKE) March 26, 2023
Tinubu’s manifesto proposes a review of the existing Nigerian Security Exchange Commission (SEC) regulations on digital assets to make them more business-friendly.
The suggested regulations will require digital asset companies to register with the SEC and ensure that all digital asset offerings and investments comply with SEC regulations. These regulations will provide a framework for regulating digital assets such as cryptocurrencies and other digital tokens in Nigeria.
The manifesto aims to encourage the prudent use of blockchain technology in various sectors, including banking and finance, identity management, revenue collection, and the use of crypto assets. An advisory committee will be established to review SEC regulation on digital assets and create a more efficient and business-friendly regulatory framework.
Nigerians have shown a growing interest in cryptocurrencies with the country having one of the highest rates of cryptocurrency adoption in the world. However, existing regulations in Nigeria have been criticized for not allowing crypto users to transact with local banks. The proposed reforms to the SEC regulations are expected to address this issue and stimulate economic growth.
The manifesto’s publication also aligns with the Central Bank of Nigeria’s (CBN) eNaira, the country’s central bank digital currency. Plans are in place to expand the adoption of eNaira which has not yet lived up to expectations. The proposed regulatory framework will also help promote the use of eNaira in the country.
Tinubu said,
“We will also encourage the CBN to expand the use of our digital currency, the eNaira.”
The CBN’s milder stance on stablecoins in Nigeria is indicative of Nigerians’ growing interest in cryptocurrencies. Recently, the CBN published a research report titled “Nigeria’s Payment System Vision 2025,” exploring the creation of a new framework to introduce a stablecoin in Nigeria.
The proposed reforms to the SEC regulations have the potential to attract more investors to Nigeria’s digital and economic sectors the manifesto outlines.
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