The National Information Technology Development Agency (NITDA) has disclosed Nigeria’s intention to develop a blockchain branded “Nigerium.”
According to Kashifu Inuwa Abdullahi, NITDA’s Director-General, the creation of an indigenous blockchain is necessary to protect the country’s data and promote national security. The decision stems from concerns that prominent blockchain technologies are controlled by foreign developers who may not prioritize Nigeria’s interests. By developing its own blockchain, Nigeria aims to ensure greater control over its data and enhance security measures tailored specifically to the nation’s needs.
According to Investopedia, a blockchain is a distributed database or ledger shared among a computer network’s nodes. Blockchains can be used to make data in any industry immutable and unalterable. This technology offers numerous advantages, including increased transparency, security, and efficiency in data management and transactions. It can transform various sectors by providing a reliable and tamper-proof method of recording information.
The initiative to develop Nigerium aligns with Nigeria’s broader strategy to leverage emerging technologies for national development. In recent years, the country has shown a strong commitment to embracing digital innovation. For instance, in May 2023, the Federal Ministry of Communications and Digital Economy announced a national blockchain policy aimed at facilitating the development of the Nigerian digital economy and enabling citizens to have more confidence in digital platforms. This policy underscores the importance of building a robust digital infrastructure to support economic growth and technological advancement.
NITDA’s plan to develop Nigerium is part of a series of efforts to integrate blockchain technology into various aspects of Nigerian society. In August 2023, Kashifu Inuwa Abdullahi announced that the National Youth Service Corps of Nigeria certificates would now be issued and certified on blockchain technology. This move highlights the government’s dedication to adopting blockchain solutions to enhance the security and authenticity of official documents.
Furthermore, NITDA recently announced plans to establish research centers for blockchain technology and other emerging technologies across the six geopolitical zones in the country. These centers will serve as hubs for innovation and development, fostering collaboration between academia, industry, and government to drive technological progress.
Analysts believe that the development of an Indigenous blockchain, Nigerium, is a significant step in implementing the propositions outlined in the national blockchain policy. It represents a proactive approach to addressing the challenges associated with relying on foreign technologies and underscores Nigeria’s ambition to become a leader in the digital economy.
Read also: Five Websites That Are Illegally Collecting Nigerian Data.
However, it is important to note that while Nigeria is making strides in blockchain regulation, there are still challenges in the broader adoption of cryptocurrencies. Nigerian authorities have been clamping down on crypto usage and adoption, citing concerns over financial stability and regulatory compliance. Legal disputes with major crypto exchanges, such as Binance, over issues like Naira manipulation and tax evasion, illustrate the complexities involved in balancing innovation with regulation.
The beginning of Nigerium
A delegation from the University of Hertfordshire Law School, led by Chanu Kuppuswamy, proposed and presented the Nigerium blockchain project. Chanu argued that developing a homegrown blockchain will enable Nigeria to customize the technology according to its needs and ensure it aligns with the country’s laws and regulations. Emphasizing the potential risks of relying on foreign-made blockchains, Chanu highlighted an instance when Ethereum recently made significant changes to its blockchain without consulting its users. This example illustrates the lack of control and influence a country might have over foreign blockchain technologies.
The delegation also suggested Nigeria set up a Data embassy comprising a server hosted in a third-party country to provide digital continuity and shield the country’s data from adverse events like natural disasters, cyber-attacks, and other threats. This proposal aims to enhance the resilience and security of Nigeria’s digital infrastructure.
Lastly, the team recommended harmonizing blockchain technology across government agencies to promote interoperability and interdependence. This approach would streamline processes, reduce redundancies, and foster a more cohesive and efficient digital ecosystem.
NITDA chief Abdullahi, while receiving the delegates, indicated that the proposed project would get the private sector working together with the public sector. He also agreed that the proposed blockchain would improve national security and the safety of citizens’ data. The collaboration between different stakeholders is crucial to the success of the Nigerium project, ensuring that it meets the diverse needs of the Nigerian society.
When Will Nigerium Be Launched?
NITDA has confirmed that it will build Nigerium. However, Hadiza Umar, the agency’s head of corporate affairs and external relations, told Decrypt that there is no timeline for its development and implementation. The project is still in the planning and proposal stage, and further details will emerge as the development progresses.
If approved, the Nigerium project will be a collaborative effort between NITDA, government agencies, and private sector organizations. This partnership aims to leverage the expertise and resources of various stakeholders to create a robust and secure blockchain platform tailored to Nigeria’s specific needs and objectives. The successful implementation of Nigerium could position Nigeria as a leader in blockchain technology and set a precedent for other countries looking to develop their own digital infrastructures.
