On September 11, 2024, BusinessDay hosted its inaugural Blockchain Conference at Radisson Blu, Victoria Island, Lagos. The theme, “Building Africa’s Future: Harnessing Blockchain for Social and Economic Transformation,” resonated deeply with the discussions and presentations of the day.
Opening Remarks
Frank Aigbogun, publisher and chief executive officer, of BusinessDay Media Limited represented by Lolade Akinmurele, deputy editor, of BusinessDay Media Limited said blockchain is no longer just an idea for the future; it’s here and shaping the present. From finance and healthcare to governance and beyond, the potential is vast.
Governments use blockchain for land registries in countries like Ukraine, Estonia, and Georgia. Azerbaijan is working on digital identities (IDs) for banking, and Switzerland is positioning itself as a blockchain hub. These examples remind us that Africa, too, can leverage blockchain for growth.
Aigbogun highlighted blockchain’s ability to bring transparency, trust, and inclusivity, addressing key challenges across the continent, such as financial exclusion and inefficiencies in governance.
Blockchain offers a decentralised system where transactions are secure and transparent, making it an essential tool for fostering economic growth and social equity.
Read also: Blockchain stakeholders clampdown on illegal operators
Keynote address by Director General Securities and Exchange Commission
Emomotomi Agama, (Ph.D), director general of the Securities and Exchange Commission (SEC), shared his insights, emphasising the need for regulatory frameworks to manage blockchain’s growth.
Highlights
Blockchain for Industry Transformation: Blockchain can drive financial inclusion and efficiency across African sectors, offering innovative solutions to economic and social challenges.
Changing Blockchain’s Narrative: There’s a need to focus on blockchain’s potential for positive impact rather than its negative portrayal.
Understanding Before Regulation: Regulators must fully understand blockchain technology before creating rules, ensuring that smart contracts and other blockchain innovations are safely integrated.
Economic Potential of Blockchain: Blockchain can resolve land ownership issues, unlock trapped capital, and democratise asset ownership through tokenisation, enabling more people to access credit.
Social Change and Transparency: Blockchain can address societal issues like corruption by making processes like voting and government procurement more accountable and transparent.
Financial Inclusion and Efficiency: Blockchain can extend access to financial services for unbanked populations, speeding up transactions and creating a more inclusive financial ecosystem.
Encouraging Innovation Among Youth: Africa’s youth, leading the technological charge, are well-positioned to drive blockchain development, especially in areas like decentralised applications and social impact bonds.
Regulation for Growth: Effective regulation is crucial for guiding blockchain innovation without stifling it, creating a stable environment for sustainable development.
Global Alignment: Nigeria’s regulatory framework aligns with international standards, boosting cross-border collaboration and investor confidence.
Trust Between Innovators and Regulators: Mutual trust is essential, with regulators guiding the industry responsibly and innovators adhering to rules to build confidence in the system.
Patriotism and National Development: Innovators were encouraged to prioritise the country’s welfare over personal gain, contributing to Nigeria’s development through responsible blockchain solutions.
Balancing Transparency and Privacy: There’s a need to strike the right balance between transparency in blockchain transactions and maintaining privacy for users.
Collaboration for a Better Future: The importance of partnerships between regulators, innovators, and other stakeholders to unlock blockchain’s full potential and build strong institutions for economic development.
Highlights of the Director General of National Information Technolgy Development Agency’s Keynote Address
Kashifu Inuwa Abdullahi, director general of the National Information Technology Development Agency (NITDA), represented by Ayodele Bakare, delivered a keynote speech on “National Digital Economy Policies, Strategies, and the Role of Blockchain Technology,” covering several key themes:
Abdullahi’s speech highlighted Nigeria’s digital economy strategy, which focuses on infrastructure development, skills acquisition, innovation support, cybersecurity, and data protection. Blockchain’s role in sectors like financial services, land registry, education, and agriculture was emphasised.
NITDA supports blockchain adoption through policy frameworks, partnerships, and a regulatory sandbox. Challenges such as lack of awareness and technical expertise were acknowledged, but blockchain was seen as an opportunity for Nigeria to lead Africa’s digital innovation.
Abdullahi called for collaboration and emphasised the need to equip Nigerians with digital and blockchain skills. Achievements include the National Blockchain Dialogue Conference, the National Blockchain Strategy, and awareness campaigns.
Africa’s unique opportunity lies in leveraging blockchain to leapfrog traditional development models and capitalise on its “brain resources.” Investing in African youth is crucial to preparing them for the blockchain revolution.
Keynote Address by Senior Research and Data Analyst at BusinessDay Intelligence
In his keynote address Mohammed Akonji, senior Research and Data analyst at BusinessDay Intelligence, made a compelling case for decentralising digital infrastructure, citing global internet outages, including the July 2024 incident that caused $5 trillion in lost revenue.
He stressed the vulnerabilities of centralised systems and advocated for blockchain as a solution to eliminate intermediaries, increase transparency, and enhance various sectors like financial services and supply chain management.
Blockchain Growth and Africa’s Untapped Potential
BusinessDay Intelligence’s research shows explosive blockchain growth, from $1 billion globally in 2020 to $30 billion by 2023, with projections suggesting it could reach $1.8 trillion by 2034.
While North America dominates with 46 per cent of the global market, Africa and the Middle East only account for 2 per cent, highlighting massive opportunities for Africa’s economic development. Akonji called for greater investment and understanding of blockchain’s potential in Africa, especially in financial inclusion, healthcare, and supply chain management.
Real-World Applications of Blockchain
Akonji presented two powerful examples:
● 2018 World Food Programme (WFP) Initiative in Jordan: Blockchain was used to distribute aid to refugees, cutting out intermediaries and saving $1.5 million.
● Global Digital Identification: Over 1 billion people lack formal IDs, and blockchain could help provide secure digital identities, contributing to global development goals.
Opportunities for Nigeria
Akonji identified key areas for blockchain’s transformative potential in Nigeria:
● Financial Services: Decentralised finance (DeFi) could improve banking access for rural and underserved populations.
● Supply Chain: Blockchain can track fuel consumption and prevent smuggling, ensuring transparency in Nigeria’s petroleum industry.
● Healthcare: Blockchain could revolutionise record-keeping, reduce fraud, and improve patient outcomes in the healthcare sector.
BusinessDay Intelligence’s Role
As a leading research body, BusinessDay Intelligence is committed to fostering blockchain adoption in Nigeria through:
● Advocacy and Awareness: Educating the public about blockchain’s benefits, noting that only 20 per cent of Nigerians understand how it works.
● Market Research: Providing data-driven insights on blockchain trends, opportunities, and challenges.
● Security and Risk Management: Offering expert analysis on cybersecurity risks and safeguarding digital infrastructure.
Akonji concluded with a call to action, urging Nigerian businesses and government agencies to harness blockchain technology for social and economic progress. BusinessDay Intelligence aims to engage stakeholders in unlocking blockchain’s full potential for Africa’s future.
First Panel Session
Theme: Beyond Crypto: Exploring Blockchain Applications for African Businesses
Panelists: Deborah Ojedengbe, CEO, of AFEN Blockchain Network; Nathaniel Luz, CEO and co-founder, Flincap; Ezichim Onweagba, director of partnerships, Quidax; Fure Eviosekwofa, CEO of Forex Technologies; and Abiodun Attah, executive director, technical services, Nigerian Communications Satellite Ltd; Nathaniel Luz, CEO. The panel session was moderated by Temitayo Jaiyeola, senior tech reporter at BusinessDay.
Key Discussions
1. Blockchain Beyond Crypto: Panelists discussed blockchain’s potential to transform business operations, governance, and service delivery in Africa by improving transparency, security, and efficiency.
2. Collaboration for Blockchain Growth: Deborah Ojedengbe emphasised the need for collaboration among the private sector, government, and academia to drive blockchain development. The private sector fosters innovation, the government ensures protective regulations, and academia contributes essential research.
3. Nigerian Blockchain Policy: Ezichim Onweagba praised Nigeria’s National Blockchain Policy but noted it requires ongoing refinement to meet the ecosystem’s dynamic needs. Continued stakeholder collaboration is crucial for policy development and implementation.
4. Self-Regulation in Blockchain: Fure Eviosekwofa highlighted the importance of self-regulation for building trust and credibility in the industry, ensuring businesses proactively secure users and adhere to global standards.
5. Blockchain for SMEs: Nathaniel Luz discussed how blockchain can overcome challenges faced by African SMEs, such as limited access to international financial systems, by providing alternative payment systems and enabling global participation.
6. Access to Credit for SMEs: Blockchain simplifies identity verification and provides seamless cross-border credit access, benefiting SMEs. Its transparency ensures data integrity, boosting financiers’ confidence in lending.
7. Women and Credit Access: Women entrepreneurs, often sidelined by traditional banking, could benefit from blockchain’s smart contracts to streamline loan processes, adjust interest rates, and simplify access to credit.
8. Internet Connectivity for Blockchain Adoption: NigComSat presented efforts to enhance internet access in rural areas through initiatives like “Project 774,” aimed at connecting all local governments via satellite-powered internet to support blockchain adoption.
9. Skill Development: Despite Nigeria’s skilled developers, the panel noted a need for more blockchain engineers to manage large-scale projects. Continuous training and skill development are crucial for the industry’s growth.
10. Entrepreneurial Spirit: Nigerian entrepreneurs, already leveraging blockchain despite infrastructure challenges, show adaptability. Blockchain offers opportunities for independent solutions beyond government constraints.
The panel sessions concluded with a call to action for businesses, governments, and tech innovators to embrace blockchain as a transformative tool for unlocking new economic opportunities, especially for SMEs, women entrepreneurs, and cross-border trade.
Collaboration, innovation, and self-regulation were highlighted as critical to blockchain’s potential in finance, logistics, and education. The event set the stage for future exploration of blockchain’s role in Africa’s socio-economic transformation.
Read also: Regulatory participation to boost blockchain adoption in Nigeria
Fireside Chat with Buchi Okoro, CEO and founder, Quidax
At a fireside chat, Buchi Okoro, the CEO and founder of Quidax, shared his insights on the Nigerian crypto industry and the impact of recent regulatory developments.
● Buchi Okoro shared insights on the Nigerian crypto industry and the impact of recent regulatory developments at a fireside chat.
● Quidax obtained a licence from the Securities and Exchange Commission (SEC), a significant milestone that is expected to boost public trust and adoption.
● Licensing is seen as a crucial step towards legitimising and stabilising the crypto sector, addressing fraud and negative perceptions shaped by past scams.
● Quidax has implemented measures such as ensuring personal bank accounts for crypto transactions to combat fraud and promote transparency.
● Buchi believes artificial intelligence (AI) will revolutionise the world and is vital in crypto trading and fraud detection.
● He advocates for central banks to create enabling environments for businesses rather than competing with private sector entities.
● Quidax has addressed the talent challenge by training people with adjacent skills and recruiting foreign talent.
● Buchi Okoro received a round of applause for his contributions to the Nigerian crypto industry and insights into digital assets.
Second Panel
Theme: Blockchain for Financial Inclusion, Economic Growth, and Governance
Panelists: Chimezie Chuta, founder, of Blockchain Nigeria User Group; Edward Ibekwe, sales manager, Chainup; Jeremiah Mayowa, CEO, Jeroid; and Bolueatife Omotayo, tech journalist, BusinessDay moderated the session.
Key Highlights from Panel Discussions
Chimezie Chuta stressed that education must precede blockchain adoption, especially in rural regions, where a lack of internet access and technological literacy may create barriers.
Edward Ibikwe’s address highlighted the immense potential of blockchain to transform cross-border trade in Africa. He emphasised the benefits of reduced transaction fees, accelerated transaction times, and increased transparency.
Jeremiah Mayowa underscored the significance of grassroots education in driving blockchain adoption and empowering local businesses to engage with cryptocurrency in a simplified and accessible manner.
Chimezie Chuta shared valuable insights into business opportunities within the blockchain ecosystem, focusing on three key areas: the infrastructure layer, which involves providing essential services and tools, entrepreneurship opportunities for building innovative blockchain-based solutions, and speculation, which involves trading of cryptocurrencies.
Among the key points raised during the discussion were the need to address the talent gap, the existence of non-technical roles within the blockchain industry, and the importance of training and development programs to equip individuals with the necessary skills. Additionally, the potential for blockchain to enhance supply chain transparency and the opportunities it presents within the informal sector were explored.
In terms of the future of blockchain in Nigeria, the speakers expressed optimism about its growth and recognition. They highlighted the government’s efforts in setting policy directions for blockchain but acknowledged the need for further regulatory evolution to create a conducive environment for its adoption.
Panel 3: Regulation, Security, and Sustainability: Building a Trustworthy Blockchain Ecosystem in Africa
Moderated by Jayola Temitayo, Head of Tech and Entertainment at BusinessDay, this panel focused on building a trustworthy blockchain ecosystem in Africa. Panellists included: Francis Ogbuka, vice president, of Sales and Business Development, Zone; Onwuka Lucy, head of division, Emerging Technologies and Innovation, NFIU; Obinna Iwuno, president, Stakeholders in Blockchain Association of Nigeria; and Oluseyi Akindeinde, founder, Hyperspace.
Key Discussions
● Francis Obuka, a blockchain expert, emphasised the importance of blockchain technology in creating efficient and secure financial systems in Africa. He highlighted how blockchain’s decentralised and transparent nature can reduce transaction costs, improve financial inclusion, and increase trust in financial institutions.
● Onwuka Lucy, a representative from the Nigerian Financial Intelligence Unit (NFIU), spoke about the role of emerging technologies, including blockchain, in combating money laundering and terrorism financing. She stressed the need for collaboration between regulators, law enforcement agencies, and financial institutions to effectively utilise blockchain technology for this purpose.
● Olusheye Akindele, a cybersecurity expert, discussed the potential of blockchain technology in enhancing cybersecurity, product authentication, and identity management. He explained how blockchain’s decentralised and immutable ledger system can make it easier to detect and prevent cyberattacks, ensure the authenticity of products, and simplify the process of identity verification.
Blockchain in Elections and Product Authentication
● In the context of elections, blockchain technology can be used to create secure and transparent voting systems. By leveraging cryptographic identities and embedding digital signatures in supply chains, blockchain can help prevent counterfeiting and ensure the authenticity of products.
Role of the Nigerian Financial Intelligence Unit (NFIU)
● The NFIU plays a crucial role in regulating and monitoring financial transactions to prevent the misuse of financial technologies. The unit partners with stakeholders, including banks, fintech companies, and law enforcement agencies, to provide guidance and intelligence on how to effectively utilize blockchain technology while mitigating risks.
● Regulatory Collaboration: Trust and adoption of blockchain technology require regulatory backing. The Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS) are providing the necessary support and guidance to create a conducive regulatory environment.
● Education: Educating stakeholders about blockchain technology is vital for creating a supportive regulatory environment and fostering innovation.
● Beyond Cryptocurrency: The applications of blockchain technology extend far beyond cryptocurrency. Sectors such as real estate and asset tokenization can benefit from blockchain’s unique features.
● Africa’s Potential: Africa has the potential to become a global leader in blockchain technology by proactively embracing the technology and fostering a conducive environment for innovation.
● Unified Effort: Collective action and collaboration among stakeholders are crucial for realising the full potential of blockchain technology for Africa’s development.
Future Outlook
● The adoption of blockchain technology in Nigeria is expected to surge within the next five years. This will position the country to benefit from the transformative potential of blockchain technology in various sectors, including finance, healthcare, supply chain management, and governance.
In summary, the conference sparked important discussions and set the stage for future collaboration and innovation in Nigeria’s blockchain ecosystem.
