Blockchain technology has the potential to increase Nigeria's GDP by $29 billion by 2030




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Blockchain technology has the potential to revolutionise the Nigerian economy. According to Enhancing Financial Innovation & Access (EFInA) research, it can increase Nigeria's GDP by $29 billion by 2030, mainly by instilling trust in business, government transactions, and processes.

Enhancing Financial Innovation & Access (EFInA) is a Finacial Sector Development organisation that promotes inclusive finance in Nigeria. EFInA is funded by the UK's Foreign Commonwealth & Development office (FCDO) and Bill & Melinda Gates Foundation.

EFInA identified four key use cases of blockchain technology in Nigeria- Enabling Identity Management, Payments, Access to Finance, and Land Titling & Registration- outside of cryptocurrency, which is a major application of blockchain technology and a recurring topic of discussion amongst regulators and government entities around the world today.

Driving financial inclusion in Nigeria has been highlighted by the Central Bank of Nigeria (CBN) as a key objective. As financial inclusion in Nigeria stands at 64 per cent, falling short of the National Financial Inclusion Strategy has the potential to revolutionise Nigeria's GDP by $29 billion by 2030

Central Bank of Nigeria (CBN) and SEC recently released a circular on cryptocurrency that speaks to the fact that blockchain technology is on Nigeria policy maker's radar.

EFInA stressed that CBN recently announced plans to launch a Central Bank Digital Currency, which has the potential to support governmental intervention schemes for those in underserved areas and enable efficiency in cross-border remittances.

"To ensure that the potential of cryptocurrency and blockchain technology is realised in Nigeria, a collaborative effort among multiple stakeholder groups is essential Regulators, Financial Service Providers, Development  Institutions, and Donors/Financial Sector Development organizations. These stakeholders groups must find ways to communicate and collaborate to spur innovation-friendly policies and ensure we take a risk-balanced approach in implementing emerging technology in Nigeria."

It added that " other countries have leveraged public-private partnerships and adopted blockchain technology to drive inclusion and efficiency in their financial systems. For instance, the South African Reserve Bank, in collaboration with ConsenSys (a fintech) and the national banking community, leveraged blockchain to reduce the transaction processing time by 75 per cent while increasing trust, confidentiality, and scalability in their financial system."



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