Africa (Commonwealth Union) _ A consortium of Nigerian digital asset experts convened at the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023 in Abuja to deliberate on the future of digital asset regulation within Nigeria. During the panel discussion titled “The Future of Digital Assets: Regulatory Uncertainty and the Way Forward,” participants explored the factors contributing to the gradual advancement of digital asset regulation and blockchain policy within the country. This dialogue sheds light on the challenges and opportunities surrounding the regulatory landscape for digital assets in Nigeria and aims to chart a path forward.
Adedeji Owonibi, the CEO of Convexity, stressed the importance of the Central Bank of Nigeria (CBN) formulating a blockchain regulation strategy in 2021 rather than severing the connections between cryptocurrency exchange firms and local banks. He commended the National Information Technology Development Agency (NITDA) for its developmental regulatory initiatives, emphasizing their significance in comprehending and creating a favorable environment for the blockchain and cryptocurrency sector. Owonibi’s viewpoint underscores the need for a proactive and well-informed approach to regulate emerging technologies and industries like blockchain and crypto.
Preye Itonyo, the deputy director of NITDA’s Digital Economy Development Department, acknowledged the regulatory challenges posed by the decentralized nature of blockchain, resulting in a lack of understanding of blockchain and cryptocurrency concepts in Nigeria. This lack of comprehension played a role in the 2021 ban on crypto transactions involving traditional financial institutions. Itonyo stressed that Nigeria’s established blockchain policy is a critical first step toward ensuring the safety and protection of crypto investors. He also revealed that NITDA has formed a steering committee to facilitate the implementation strategies of the national blockchain policy, with the CBN and the Nigerian Communications Commission as committee members.
