Nigeria plans Indigenous Blockchain “Nigerium” for Data Sovereignty and Security

Nigeria is taking a significant step towards data security and national sovereignty with the proposed development of its own blockchain, “Nigerium.” The National Information Technology Development Agency (NITDA) recently received a delegation from the University of Hertfordshire Law School who presented the idea. This proposal comes on the heels of NITDA’s plans to establish blockchain research centers across the country and follows the Nigerian government’s approval of a national blockchain policy in 2023.

The impetus for a homegrown blockchain stems from concerns about relying on foreign-developed platforms like Ethereum. These platforms are overseen by developers who might not prioritize Nigeria’s interests. As Chanu Kuppuswamy, leader of the delegation, highlighted, using existing blockchain solutions subjects Nigeria to the whims of foreign entities not beholden to Nigerian law. “Nigerium” would offer greater control and decision-making autonomy for the country. The delegation emphasized the need for meticulous planning to ensure the security and control of Nigerian data.

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Data security is a major concern for the delegation, who also proposed the establishment of a “data embassy.” This embassy, essentially a server hosted in a neutral third-party country, would serve as a backup and safeguard against cyberattacks, natural disasters, and other threats. Regulations under Nigerian law would govern the data embassy, and Nigeria would collaborate with the host nation to ensure continued security and control.

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The delegation further stressed the importance of collaboration between government departments to leverage blockchain technology for inter-agency cooperation. This approach would streamline government operations and potentially unlock new avenues for blockchain-based services.

Despite Nigeria’s progress in the blockchain arena, the country’s crypto landscape remains under a regulatory cloud. Stringent regulations have impacted service providers, with major crypto exchanges like Binance facing legal disputes and KuCoin recently implementing a 7.5% value-added tax (VAT) on crypto trades.

Meanwhile, Nigeria’s neighbor, Ghana, is actively pursuing the title of Africa’s first blockchain-powered government. Ghana’s ambitions lie in digitizing government services and bolstering data security through tamper-proof blockchain technology.

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Nigeria’s proposed “Nigerium” blockchain presents a fascinating counterpoint to Ghana’s national-level ambitions. While the details of “Nigerium” are still under development, it has the potential to be a game-changer for Nigerian data security and national sovereignty. Success will hinge on meticulous planning, effective collaboration between government departments, and navigating the complex regulatory landscape surrounding cryptocurrency. Nigeria’s path forward will be closely watched as it carves its niche in the evolving African blockchain landscape.