The National Information Technology Development Agency (NITDA) of Nigeria has unveiled plans to develop an indigenous blockchain technology called “Nigerium.” This groundbreaking initiative aims to address the country’s data protection and national security concerns while positioning Nigeria at the forefront of blockchain innovation.
Kashifu Inuwa Abdullahi, NITDA’s Director-General, emphasized the importance of creating a homegrown blockchain solution. He highlighted that many existing blockchain technologies are controlled by foreign developers who may not prioritize Nigeria’s interests. By developing Nigerium, the country seeks to tailor 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 significant attention for its ability to create immutable and unalterable data records. This characteristic makes it valuable across various industries, prompting Nigeria to explore its potential applications.
The announcement of Nigerium 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 fostering the development of Nigeria’s digital economy and enhancing public trust in digital platforms. Subsequently, an implementation committee comprising blockchain experts and professionals was established to oversee the policy’s execution.
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 across 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 emphasized the benefits of developing a native blockchain, including the ability to customize the technology according to Nigeria’s specific requirements and maintain control over key decisions affecting the blockchain’s development and operation.
To further enhance data security, the delegation suggested establishing a “Data Embassy” – a server hosted in a third-party 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 across government agencies to promote interoperability and interdependence.
Abdullahi expressed enthusiasm for the project, noting that it would foster collaboration between the private and public sectors. He agreed that the proposed blockchain would contribute to improved national security and safeguarding citizens’ data.
While NITDA has confirmed its commitment to developing Nigerium, Hadiza Umar, the agency’s head of corporate affairs and external relations, stated that 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 advancements in blockchain policy, Nigerian authorities maintain a cautious stance on crypto usage and adoption, as evidenced by ongoing legal disputes with cryptocurrency exchanges.
The development of Nigerium represents a significant step in implementing 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 crucial to monitor its impact on Nigeria’s digital landscape and its potential to address the country’s unique technological challenges.