Bola Tinubu became Nigeria’s 16th President after the inauguration ceremony in Abuja, the country’s capital on Monday despite the fact that the legitimacy of his position is under contest after a highly controversial election.
While the President is set to constitute a new Federal Executive Cabinet (FEC), players and stakeholders in the Nigerian crypto space hope his government will develop more crypto friendly policies.
As a backstory, despite the fact that Nigeria has a high youth population interested in emerging technologies like blockchain and cryptocurrency, irregular frameworks have plagued the nascent Nigerian crypto ecosystem.
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Tinubu’s manifesto shows little understanding of the Nigerian tech ecosystem
Recall that the administration of former President Muhammadu Buhari placed a ban on crypto transactions in the country’s banking system. Although it released a policy framework on blockchain technology towards its sunset, it doesn’t take away the fact that his tenure largely fostered unfriendly crypto policies which hampered the development of the industry.
With the plethora of promises the ‘Renewed Hope’ era of Bola Tinubu has brought with it, it is important to examine what the atmosphere could look like for Nigerian crypto users.
What did Bola Tinubu Promise?
President BAT’s manifesto could potentially change the country’s financial landscape by allowing the use of blockchain technology and cryptocurrencies in the banking and finance sector, identity management, revenue collection, at least on the surface.
The suggested regulations in the document will require digital asset companies to register with the country’s Securities and Exchanges Commission (SEC) and ensure that all digital asset offerings and investments comply with SEC regulations. According to the manifesto, these regulations will provide a framework for regulating digital assets such as cryptocurrencies and other digital tokens in Nigeria.
Basically, what this is set out to do is to review the existing SEC regulations on ‘digital assets’ to make them more business-friendly. Bola Tinubu said:
“We will reform the policy to encourage the prudent use of blockchain technology in banking and finance, identity management, revenue collection and use of crypto assets. We will establish an advisory committee to review SEC regulation on digital assets creating a more efficient and business-friendly regulatory framework.”
An advisory committee will be established to that effect.
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eNaira sees a 63% spike in transactions amid Naira scarcity, yet most Nigerians remain indifferent
Bola Tinubu also has news for the country’s CBDC, the eNaira’s lovers, if the digital currency has any. The manifesto said there are plans in place to expand the adoption of eNaira which has not lived up to expectations.
“We will also encourage the CBN to expand the use of our digital currency, the eNaira.”
Bola Tinubu, Nigeria’s President in his campaign manifesto document.
The issues
Disappointedly, Bola Tinubu, going by the plans in his manifesto will do little or nothing to address the irregularities surrounding the legality of crypto trading in the country.
The president failed to address the extant crypto ban in the country’s banking system. At the moment, there is no provision that allows crypto users in Nigeria to transact with their local banks but rather than address that, Bola Tinubu decided to reiterate platitudes like “enable the use of blockchain technology and cryptocurrencies in the nation’s banking and finance sector.”
What next?
Although the newly released national blockchain policy by the former president, which is a regulatory framework that will guide the adoption of blockchain technology is a step in the right direction, the manifesto of Bola Tinubu has failed to fully address what it would do about the legality of crypto in Nigeria.
As the Nigerian crypto industry continues to experience several setbacks in regulatory adjustments, what has been proven is that those in charge of affairs are perhaps ignorant about the industry or reluctant to allow the sector to grow.
It now remains to be seen whether Bola Tinubu’s administration would offer something different for the Nigerian youths who have found blockchain and crypto as a viable tool for productivity.
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