Nigeria Plans "Nigerium" Blockchain for Data Security

Nigeria's National Information Technology Development Agency (NITDA) is endorsing the development of a domestic blockchain named "Nigerium." This initiative aims to enhance national security and protect citizens' data. The agency's Director General Kashifu Abdullahi, highlighted its significance and asserted that the locally developed protocol would ensure better compliance with Nigerian laws. This would offer the country greater control over its data.

“committee is still in discussion with stakeholders on the possibility…….Rather, measures will be implemented in the eventual blockchain solutions to maintain data sovereignty” - Hadiza Umar (NITDA’s head of corporate affairs and external relations)

Chanu Kuppuswamy and her team are key proponents of this initiative. They are from the University of Hertfordshire Law School. They argue that using foreign-developed blockchains such as Ethereum, poses risks. This is due to a lack of governmental control. Kuppuswamy and her delegation have proposed the establishment of a data embassy. It would be a server hosted in a neutral third country. This would secure Nigerian data against cyberattacks and other threats.

Nigeria's history with cryptocurrencies and blockchain technology is complex. The Central Bank of Nigeria (CBN) banned banks from facilitating cryptocurrency transactions in February 2021. This action pushed traders to peer-to-peer (P2P) platforms. Despite these restrictions, the country's interest in blockchain technology remains high. The interest in digital currencies also persists. The country's cryptocurrency industry is estimated to be worth $400 million.

The proposed blockchain, Nigerium is expected to be a collaborative effort between NITDA and key public and private sector stakeholders. However, details on the project's timeline remain undisclosed. One key question is how Nigerians will acquire the native token for Nigerium. This question is significant given the current bans on Naira P2P and bank crypto transactions.

What are the implications of developing a domestic blockchain for Nigeria's data security and national sovereignty? Will this initiative navigate the challenges posed by existing financial regulations?

In conclusion, Nigeria's plan to create Nigerium reflects a strategic move towards data security and national control. While the initiative promises enhanced compliance with local laws. The challenge of integrating this blockchain into Nigeria's financial system remains a critical issue to address.