FG chases crypto regulation while $40bn blockchain vision lies idle

Nigeria’s push to regulate cryptocurrencies has overshadowed the implementation of its own national blockchain policy, delaying a strategy designed to unlock as much as $40 billion in economic value. The policy, launched three years ago, remains largely unimplemented, putting an estimated $2 trillion economic opportunity at risk.

Policy approved but not activated

Industry experts say that while President Bola Tinubu’s recently signed Virtual Assets Executive Order and the implementation of the Investments and Securities Act (ISA) 2025 have brought long-awaited clarity to digital asset regulation, the broader blockchain agenda has remained largely untouched since the National Blockchain Policy for Nigeria was approved in 2023.

Obinna Iwuno, founder of the Crypto Bootcamp Community, told BusinessDay that Nigeria is among the few countries globally to have adopted a national blockchain policy, yet implementation has stalled. “There has been no implementation. We thought that with the inception of this administration it was going to be accelerated, but instead what we have witnessed is a stalling,” Iwuno said.

He noted that Nigeria occupies a unique position globally, being the only African country and one of just nine countries worldwide to have adopted a national blockchain policy. “Nigeria is the only country in Africa that has a national blockchain policy and the ninth country in the world. That is something very important that shouldn’t be experiencing what it is experiencing right now.”

Crypto focus overshadows blockchain foundation

According to Iwuno, the policy remains under the supervision of the National Information Technology Development Agency (NITDA) within the Federal Ministry of Communications, Innovation and Digital Economy, but little progress has been made since the inauguration of the National Blockchain Steering and Implementation Committee. “The question is why the National Blockchain Policy is still not operative and activated after the launch of a national steering and implementation committee. It seems like everything was shut down, and that is not good for our country,” he said.

While acknowledging the need for stronger regulation of cryptocurrencies and virtual assets, Iwuno argued that policymakers have paid too much attention to crypto while neglecting blockchain technology itself, which he described as the foundation of the entire ecosystem. He compared blockchain to crude oil, saying cryptocurrencies are only one of many valuable products that can be derived from the technology. “It is like focusing only on petroleum when crude oil can produce diesel, kerosene, jet fuel, gas and many other products. Crypto is just one byproduct of blockchain technology. There needs to be much more focus on blockchain because of how it can revolutionise our economy,” he said.

Billions at stake across multiple sectors

Iwuno said that while virtual assets would become an important economic sector and revenue generator, blockchain technology has far broader applications. “Blockchain is an entire system that can touch every fabric of our economy and society. From oil and gas to mining, governance, healthcare, education, public service, infrastructure, supply chains and agriculture, virtually every sector stands to benefit if the policy is fully implemented,” he said.

The policy, developed by NITDA, was designed to transform Nigeria from a consumer of foreign technology into a producer of blockchain-based digital services. It proposed building a sovereign blockchain infrastructure known as Nigereum, creating regulatory sandboxes for startups, integrating blockchain into government services, modernising land registries and identity management, and training tens of thousands of blockchain developers. At launch, NITDA set an ambitious target of generating $40 billion from blockchain technology while positioning Nigeria as Africa’s blockchain innovation hub.

Industry estimates suggest the cost of inaction could be substantial. The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) has previously warned that Nigeria risks missing out on an estimated $2 trillion in long-term economic value. Studies by Enhancing Financial Innovation and Access (EFInA) also projected that blockchain could contribute $29 billion annually by 2030, up from roughly $1 billion today if adoption accelerates.

Instead, attention has shifted almost entirely to regulating cryptocurrencies. Last weekend, Tinubu signed the Virtual Assets Executive Order to improve coordination among regulators overseeing digital assets. The order establishes a Virtual Asset Office and a Virtual Asset Council to coordinate the work of the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), tax authorities and other agencies. While experts welcomed the move as a step towards regulatory certainty, many argue it does little to advance the broader blockchain economy.

Bobola Odebiyi, founder and chief executive of Avanor Labs, said the National Blockchain Policy has remained largely dormant because, while many countries produce ambitious digital economy strategies, far fewer build the institutions to execute them.

What this means for the naira and Nigerian businesses

For the naira and Nigerian businesses, the stalled blockchain policy represents a missed opportunity to diversify revenue streams, reduce reliance on foreign technology, and create high-value jobs. Without implementation, the economy loses potential gains in sectors like supply chain efficiency, land registry transparency, and government service delivery. As global governments increasingly view blockchain as critical infrastructure, Nigeria risks falling behind its peers if it fails to move beyond crypto regulation and activate its full blockchain strategy.