Nigeria is one of the countries where cryptocurrency adoption is on the rise. In recent years, the country has seen an increase in cryptocurrency trading and the use of cryptocurrencies for cross-border payments, remittances, and e-commerce. However, the lack of regulations and clear guidelines for the use of cryptocurrencies has been an obstacle to the growth of the sector.

To address this issue, Bola Tinubu, the President-elect of Nigeria, has published a manifesto that includes proposals for the use of blockchain technology and cryptocurrencies in the Nigerian banking and financial sector. The manifesto proposes a revision of existing Nigerian Securities Exchange Commission regulations on digital assets to make them more business-friendly.

The proposed reforms would require digital asset companies to register with the SEC and comply with SEC regulations. The manifesto also proposes the establishment of an advisory committee to review SEC regulations on digital assets to create a more efficient and business-friendly regulatory framework. The proposed regulations would allow the use of cryptocurrencies and other digital tokens in the Nigerian banking and financial sector, as well as in identity management, revenue collection and other areas.

The government hopes that the proposed reforms to the SEC regulations will help attract more investors in the economic and digital sectors and stimulate economic growth. The manifesto also aligns with the Central Bank of Nigeria’s eNaira, the country’s central bank digital currency. The government plans to expand the adoption of eNaira, which has not lived up to expectations since its launch.

However, some cryptocurrency enthusiasts have criticized existing regulations for lacking provisions allowing cryptocurrency users to transact with their local banks. Proposed reforms to SEC regulations would address this issue and provide a framework for regulating digital assets such as cryptocurrencies and other digital tokens in Nigeria.

The release of the manifesto coincides with the growing adoption of cryptocurrencies in Nigeria, which is among the highest in the world. According to a Chainalysis report, Nigeria ranks second in the world in terms of cryptocurrency adoption, after Ukraine. The report notes that the high adoption of cryptocurrencies in Nigeria is driven by a variety of factors, including high remittance fees, currency volatility, and a large young population with a high level of technology adoption.

The Nigerian government’s interest in cryptocurrencies is also reflected in the Central Bank of Nigeria’s more dovish stance towards stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025”, which explores creating a new framework to introduce a stablecoin in Nigeria.

In conclusion, the Bola Tinubu manifesto includes proposals for the use of blockchain technology and cryptocurrencies in the Nigerian banking and financial sector. Proposed reforms to SEC regulations would allow the use of cryptocurrencies and other digital tokens in Nigeria’s banking and financial sector, as well as in identity management, revenue collection, and other areas. The government hopes that the proposed reforms will help attract more investors in the economic and digital sectors and stimulate economic growth.