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Nigeria Expects to Generate a Revenue Stream of $6 Billion Through Blockchain Technology by 2030

Nigeria’s National Information Technology Development Agency (NITDA) mandated with spearheading the nation’s digital economy policy says that Blockchain technology can help the country generate revenue of between $6 and $10 billion in the next ten years.

Emerging technologies are enhancing global economic growth

Speaking during a stakeholders’ engagement for the review of the National Blockchain Adoption Strategy Framework, Kashifu Inuwa, NITDA director-general, noted that emerging technologies like blockchain were pivotal in boosting the growth of global economies. Therefore, Nigeria would not be left out of this bandwagon.

Inuwa cited a recent report by PricewaterhouseCoopers (PwC), which projected that blockchain technology was going to contribute $1.76 trillion to the global gross domestic product (GDP) by 2030.

The publication disclosed five case scenarios in which blockchain could be used to drive the digital revolution forward included provenance – the tracking and tracing of products and services – payments and financial services, identity management, and the application of blockchain in contracts and dispute resolution as well as customer engagement.

Therefore, NITDA intends to place Nigeria in a strategic position so that it can capture economic value from blockchain technology. Inuwa acknowledged:

“In Nigeria, looking at our youthful population, which is mainly digitally native and with our position in Africa, we are looking at how we can get at least around six to 10 billion dollars by the year 2030.”

Nigeria deemed a FinTech hotspot in Africa

The NITDA director-general stipulated that the target was realistic, given that Nigeria had a huge potential in the payment and financial services sector. Moreover, the nation had been categorized as one of the financial technology (FinTech) hotspots in Africa.

Plans are underway for blockchain to be leveraged in digital identity, payment services, contract and dispute resolution applications, customer engagement, and provincial services, among others.

Nigeria is making notable strides in the blockchain/crypto arena. For instance, it was also among a pack of leading African nations whose weekly Bitcoin trading volumes exceeded $1 million in July.

Nigerian President-elect's Manifesto Includes Blockchain and Crypto Regulations

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

To address this issue, Bola Tinubu, the Nigerian President-elect, has released a manifesto that includes proposals for the use of blockchain technology and cryptocurrencies in Nigeria’s banking and finance sector. The manifesto proposes a review of the existing Nigerian Security 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 the SEC regulations on digital assets to create a more efficient and business-friendly regulatory framework. The proposed regulations would enable the use of cryptocurrencies and other digital tokens in Nigeria’s banking and finance 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 digital and economic 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 the eNaira, which has not lived up to expectations since its launch.

However, some cryptocurrency enthusiasts have criticized the existing regulations for lacking provisions that allow crypto users to transact with their local banks. The proposed reforms to the SEC regulations would address this issue and provide a framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.

The release of the manifesto coincides with the increasing adoption of cryptocurrencies in Nigeria, which is among the highest in the world. According to a report by Chainalysis, Nigeria ranks second in the world in terms of cryptocurrency adoption, after Ukraine. The report notes that Nigeria’s high adoption of cryptocurrencies 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 milder position towards stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025,” which explores the creation of a new framework to introduce a stablecoin in Nigeria.

In conclusion, Bola Tinubu’s manifesto includes proposals for the use of blockchain technology and cryptocurrencies in Nigeria’s banking and finance sector. The proposed reforms to the SEC regulations would enable the use of cryptocurrencies and other digital tokens in Nigeria’s banking and finance 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 digital and economic sectors and stimulate economic growth.

South Korea Invests in Metaverse Fund for Economic Growth

South Korea has been making significant investments in the metaverse, seeing it as a potential new economic growth engine. The country’s Ministry of Science and ICT recently announced a major investment in a fund dedicated to driving metaverse initiatives, with the goal of supporting the mergers and acquisitions of various firms in the metaverse ecosystem and helping domestic metaverse-related companies compete with global players.

The South Korean government has invested 24 billion Korean won ($18.1 million) to create a fund of more than 40 billion Korean won ($30.2 million) for metaverse development. The fund, called the Metaverse Fund, aims to help local players raise capital and compete with major tech companies, which have shown increasing interest in the metaverse.

The government recognizes that it can be difficult for local players to raise capital through private investments due to the underlying investment risks. As a result, the Metaverse Fund will provide a new avenue for investment and support to local companies looking to expand their metaverse-related offerings.

In addition to investing in the Metaverse Fund, South Korea also plans to actively support local metaverse-related companies. The country aims to help these firms compete with global players and plans to assist in their growth and development.

However, while South Korea is investing heavily in the metaverse, the country is still cautious about potential cross-border threats. In February, the country announced independent sanctions related to cryptocurrency thefts and cyberattacks against specific North Korean groups and individuals. This move demonstrates South Korea’s commitment to maintaining checks and balances on potential threats in the physical world.

Overall, South Korea’s investments in the metaverse reflect the country’s commitment to exploring new opportunities for economic growth. By supporting local companies and investing in the development of the metaverse ecosystem, South Korea is positioning itself to be a leader in this emerging field.

DeSantis Proposes Flat Tax and IRS Elimination, Sparks Trump Rivalry in 2024 Race

In the contest for the presidency in 2024, Florida Governor Ron DeSantis has made a significant tax reform proposal as a central component of his campaign. One of the components of this reform is the removal of the Internal Revenue Service (IRS), and another component is the establishment of a flat tax system. During a town hall meeting in Iowa, DeSantis expressed his wish to do away with the Internal Revenue Service (IRS). He emphasized that a flat income tax rate would encourage economic development and eliminate inefficiencies in the existing tax system. For the purpose of providing support for his proposition, he mentioned the state of Florida’s history of low taxes and healthy economic development. In addition, the strategy calls for the promotion of The Fair Tax Act, which is an important piece of legislation that is associated with the introduction of tax reform.

DeSantis’s support for the Fair Tax Act has been a central bone of conflict between him and Donald Trump, who served as President of the United States before he was elected. by the passage of this legislation, the federal income, payroll, and inheritance taxes would be replaced by a national sales tax level of 23 percent. As a result of the airing of a commercial by Trump’s Super PAC, MAGA Inc., which criticized DeSantis for his previous backing of legislation that would have imposed a national sales tax, the political argument became more heated. Never Back Down, a Super PAC that is connected with DeSantis, has responded by releasing a film that demonstrates Trump’s previous support for the Fair Tax. This conversation exemplifies the complicated dynamics that exist within the Republican party with respect to tax policy. Both candidates had previously been associated with the Fair Tax idea, but they are now positioning themselves in a different manner inside the political arena.

The tax reform plan that Ron DeSantis has put up, in particular his support for a flat tax and the abolition of the Internal Revenue Service, places him in a unique position in the contest for the presidency in 2024. The discussion on tax reform, particularly the Fair Tax Act, brings to light the divergent points of view that exist within the Republican party. It is also expected to be a big topic in the election that is going to take place in April.

Global Supply Chain Financing: A New Era of Resilience and Diversification

The latest report from Citi, titled “Supply Chain Financing – Building Resilience as the New Definition of ‘Global’ Emerges,” offers a comprehensive insight into the evolving landscape of global trade and supply chains. Published on January 22, 2024, this report marks the fourth edition of the Citi Global Perspectives & Solutions (Citi GPS) series and stands as a testament to the transformative changes in global trade dynamics.

Transformative Technological Innovations and Resilience

Jane Fraser, CEO of Citi, highlights the crucial role of transformative technological innovations in increasing resilience across global supply chains. This focus on resilience is driven by a universal pursuit of security across various domains like food, water, energy, cyber, financial, and operational. The report underscores a significant shift in the reconfiguration of supply chains to meet customer demands and stakeholder expectations. This shift is not only reshaping global trade but is also fostering economic growth.

Adoption of China Plus One Strategy

A notable finding in the report is the adoption of the ‘China Plus One’ strategy by over half of the global respondents, especially in North America. This strategy involves diversifying supply chains by incorporating an additional sourcing destination alongside China, with Vietnam emerging as the preferred alternative. This trend indicates a conscious effort by companies and nations to diversify their supply chain partners, thereby building new trade corridors and enhancing resilience.

Technological Developments in Trade Finance

Chris Cox, Global Head of Trade and Working Capital Solutions at Citi, emphasizes the central role of technology in trade finance. Innovations like artificial intelligence and blockchain are revolutionizing trade finance by enhancing operational efficiency, reducing costs, mitigating fraud, and improving transparency. These advancements are pivotal in improving access to efficient capital globally, especially for small and medium-sized enterprises (SMEs) and companies in emerging markets.

The Evolving Nature of Global Supply Chains

The Citi report delves into the evolution of global supply chains, highlighting the shift towards a new era of diversification. This transformation is evident in various ways:

The emergence of smaller players in global trade, particularly last-mile suppliers in developing countries.

Diversified economies spurred by increased investments in supply chains, as seen in countries like Malaysia, Thailand, Vietnam, Saudi Arabia, and the UAE.

The creation of new trade corridors, exemplified by Brazil’s increased trade with India and China and the Middle East’s stronger connections with Asia.

The report acknowledges that while significant progress has been made, the transformation of supply chains is a gradual process, requiring time to build new relationships and achieve scale.

Challenges and Opportunities Ahead

Despite the easing of supply chain pressures since the peak in 2021, the report acknowledges ongoing challenges such as high inflation, rising interest rates, and geopolitical tensions. However, these challenges also present opportunities for smaller suppliers to engage more actively in global trade. The report advocates for continued collaboration on global solutions, emphasizing the need for standardization, technological integration, and regulatory harmonization to enhance supply chain resilience.