Blockchain
Nigerium: The Blockchain Initiative That Redefines Nigeria’s Tech Landscape
Nigeria’s National Information Technology Development Agency (NITDA) has unveiled plans to develop an indigenous blockchain technology called “Nigerium.” This groundbreaking initiative aims to address the country’s concerns about data protection and national security, while positioning Nigeria at the forefront of blockchain innovation.
Kashifu Inuwa Abdullahi, Director General of NITDA, stressed the importance of creating a homegrown blockchain solution. He noted that many existing blockchain technologies are controlled by foreign developers who may not prioritize Nigeria’s interests. By developing Nigerium, the country seeks to adapt the technology to its specific needs and ensure alignment with local laws and regulations.
Blockchain technology, a distributed ledger system shared across computer networks, has gained considerable attention for its ability to create immutable and unalterable records of data. This characteristic makes it valuable in various sectors, prompting Nigeria to explore its potential applications.
Nigerium’s announcement follows a series of recent initiatives by the Nigerian government to embrace emerging technologies. In May 2023, the Federal Ministry of Communications and Digital Economy introduced a National Blockchain Policy aimed at promoting the development of Nigeria’s digital economy and increasing public trust in digital platforms. Subsequently, an implementation committee composed of blockchain experts and practitioners was established to oversee the execution of the policy.
NITDA has been at the forefront of integrating blockchain technology into various sectors. Last year, the agency announced that National Youth Service Corps certificates would be issued and certified using blockchain technology. More recently, NITDA revealed plans to establish research centers focused on blockchain and other emerging technologies in Nigeria’s six geopolitical zones.
The Nigerium project was proposed by a delegation from the University of Hertfordshire Law School, led by Chanu Kuppuswamy. The delegation highlighted the benefits of developing a native blockchain, including the ability to customize the technology to Nigeria’s specific requirements and retain control over key decisions that affect the development and operation of the blockchain.
To further enhance data security, the delegation suggested establishing a “Data Embassy,” a server hosted in a third country to provide digital continuity and protect Nigeria’s data from potential threats such as natural disasters and cyber attacks. They also recommended harmonizing blockchain technology among government agencies to promote interoperability and interdependence.
Abdullahi expressed enthusiasm for the project, noting that it would foster collaboration between the public and private sectors. He agreed that the proposed blockchain would help improve national security and safeguard citizens’ data.
While NITDA confirmed its commitment to the development of Nigerium, Hadiza Umar, the agency’s head of corporate affairs and external relations, said there is currently no specific timeline for its development and implementation. The project is expected to be a collaborative effort involving NITDA, government agencies and private sector organizations.
As Nigeria moves forward with its blockchain initiatives, it continues to navigate the complexities of cryptocurrency regulation. Despite the progress made in blockchain policy, Nigerian authorities remain cautious about the use and adoption of cryptocurrencies, as evidenced by ongoing legal disputes with cryptocurrency exchanges.
The development of Nigerium represents a significant step in the implementation of Nigeria’s national blockchain policy and demonstrates the country’s commitment to harnessing the potential of emerging technologies. As the project progresses, it will be critical to monitor its impact on Nigeria’s digital landscape and its potential to address the country’s unique technological challenges.