‘Lack of regulatory framework slowing blockchain adoption in Nigeria’

Amara Ugoji, a tech expert and member of the Blockchain Stakeholder Association of Nigeria, has said the regulatory framework to facilitate tokenisation in Nigeria is lacking and blockchain adoption is low.

He said this during a Knowledge Sharing Lecture Series at BusinessDay on blockchain, tokenisation and cryptocurrency.

According to him, the regulatory structure for asset tokenisation on the Nigerian blockchain is yet to be established.

He noted that the Securities and Exchange Commission initiated a testing phase in July this year to assess the functionality of asset tokenisation within the Nigerian ecosystem.

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“Tokenisation involves issuing a digital representation of an asset on a blockchain. However, this is so unique that it will make every asset you know to be mobile,” he said.

Asked why Nigeria had yet to adopt this system, Ugoji said: “This is primarily rooted in a lack of awareness among the populace. However, our collaboration with the National Information Technology Development Agency has resulted in the recent approval of the National Blockchain policy document.

“Also, currently the people in the traditional financial space don’t want this new development because they feel threatened but eventually they have to adjust. For instance, if there is a way to do transactions for less than 90 percent of the fee you are charged, one will accept it.”

Ugoji cited the United Arab Emirates as a compelling example of a nation decentralised on the blockchain, which achieved significant strides due to strong moral leadership. The key factor in their success was the comprehensive approach involving extensive consultations, he said.