Nigeria Risks Losing Trillions as Blockchain Opportunities Remain Untapped
Nigeria stands on the precipice of a significant economic setback, potentially forfeiting an estimated $2 trillion due to its failure to adequately leverage the burgeoning opportunities within the blockchain sector. This stark warning comes from Obinna Iwuno, the immediate past president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). His remarks follow his departure from the leadership of the nation’s premier virtual assets association.
Nigeria has demonstrated a remarkable embrace of virtual assets, notably ranking second globally in cryptocurrency adoption as of 2024. The passage of the amended Investment and Securities Act in 2025 marked a crucial step, providing official recognition for virtual assets and establishing regulatory frameworks for their operation. However, despite this progress, the nation risks squandering its potential.
Iwuno articulated the gravity of the situation, emphasizing that blockchain technology represents the fourth generation of the internet. “It was born right in front of Africans; hence, we cannot afford to be left behind,” he stated. He highlighted that while the Federal Government is pursuing an ambitious $1 trillion economic agenda, the blockchain sector alone possesses the capacity to deliver double that amount, a $2 trillion economy.
He elaborated on this potential, noting that a properly managed blockchain sector could generate $6 billion for Nigeria. “This is the era of technology, and when that third generation happens, which is already happening, blockchain is the underlying infrastructure powering it,” Iwuno explained. “Every technological innovation and invention that you see today is going to be resting on blockchain. So blockchain will power the whole world.”
Nigeria’s current standing in the African blockchain landscape is strong, with over 60% of the continent’s blockchain activity originating within its borders. This leadership position, however, is showing signs of erosion. Iwuno observed a decline from last year’s second-place global ranking in adoption, attributing this slip to a lack of robust commitment to regulatory clarity and industry structure, contrasting Nigeria’s approach with that of other nations.
Addressing Past Ignorance and Present Contradictions
A significant achievement during Iwuno’s tenure at SiBAN was securing regulatory acknowledgement for the blockchain and virtual assets sector. He recalled a period of considerable ignorance, where law enforcement agencies like SARS and the EFCC often conflated cryptocurrency dealings with criminal activity, and the Central Bank of Nigeria (CBN) issued directives against crypto transactions. “We have changed all that,” Iwuno affirmed, emphasizing that his administration’s focus on policy, regulation, and fostering positive relationships with government bodies and regulators was instrumental in demystifying blockchain technology.
However, Iwuno expressed strong criticism of the government’s current approach, labelling the push to tax the industry before establishing a clear legal framework or providing essential funding as a “big contradiction.” He drew a comparison with countries like South Africa, which has issued over 100 licenses, and Dubai, which has become a global crypto hub through well-defined policies and substantial funding. In stark contrast, Nigeria has yet to issue a single blockchain-related license.
“Why is the government interested in taxing? Why are they moving so fast to tax an industry they have not properly structured?” Iwuno questioned. He argued that any progressive nation seeking economic advancement through technology must offer tax holidays and innovation funding. He further highlighted the disparity between Nigeria’s “amended acts” and Ghana’s proactive stance, which includes a National Virtual Asset Literacy Initiative and a dedicated Virtual Asset Service Providers Act.
The Urgent Need for Production and Policy
Iwuno reiterated that Nigeria’s global standing in the blockchain arena is reportedly declining. After achieving the second position globally in adoption last year, the country has seen its ranking fall due to an overemphasis on “speculation and consumerism” rather than the development of tangible blockchain products.
“We cannot point to one blockchain solution from Nigeria that has gone global,” Iwuno stated with concern. He issued a stern warning: if Nigeria fails to produce blockchain applications for critical sectors such as agriculture, mineral extraction, and database management within the next decade, it will remain at the “bottom of the food chain” as the industry matures and saturates.
Iwuno’s reflections coincide with the conclusion of his term, which is widely credited with transforming SiBAN from a community-based association into a formally registered professional body. Under his leadership, SiBAN achieved several milestones:
* Formal registration with the Corporate Affairs Commission (CAC) and trademarking of the association.
* Establishment of a physical secretariat in Abuja with full-time staff.
* Creation of the industry’s first code of ethics for self-regulation.
* Formation of strategic partnerships with key government agencies, including the Securities and Exchange Commission (SEC), the National Information Technology Development Agency (NITDA), and the Nigerian Financial Intelligence Unit (NFIU).
A Roadmap for Reclaiming Leadership
To regain its leading position, Iwuno urged the government to move beyond mere recognition and implement a comprehensive National Policy for Blockchain Adoption. This policy should be underpinned by a clear 10-to-20-year roadmap. He also proposed the establishment of a Blockchain Innovation Fund, drawing parallels with the petroleum fund, to bolster capacity development and encourage institutional adoption of blockchain technologies.
Iwuno highlighted blockchain’s potential to address Nigeria’s persistent issues with fragmented databases. He envisioned a transparent, unified system that would eliminate the need for citizens to repeatedly update their Bank Verification Numbers (BVN), National Identification Numbers (NIN), and passports.
“The whole world is waiting to see what Nigeria will do,” Iwuno concluded. “But they are not sitting waiting for Nigeria. If Nigeria gets really delayed, it will be useless… because by that time other countries will have caught up.”
Following his departure from SiBAN, Iwuno will transition to private practice through CBC Blockchain Services, where he aims to drive the institutional adoption of blockchain solutions across the African continent.
