Nigeria, Binance In Early-Stage Talks To Build A Digital City

Cryptocurrency exchange platform –Binance and the Nigerian authorities have entered into a discussion about creating a digital economic zone that will support blockchain technology adoption by businesses within the country. The Nigeria Export Processing Zones Authority (NEPZA) via Twitter stated that the partnership’s goal is to create a digital hub “similar to the Dubai virtual free zone.”  

These discussions were held at a meeting in Dubai on Friday between Adesoji Adesugba Managing Director -NEPZA, Binance Executive Director Nadeem Ladki, Talent City CEO Luqman Edu and NEPZA Director Sikiru Lawal.

Nigeria, the most populous country in Africa, is looking into digital technology as a way to diversify its economy away from crude oil and take advantage of a population that is becoming more connected and youthful. Fintech organizations like Interswitch Ltd. and Flutterwave Inc. have taken advantage of the opportunities within the crypto space and have achieved valuations of $1 billion or more.

The government passed laws governing the trading of digital assets this year, restricting banks from facilitating cryptocurrency transactions of any kind. Nigeria Exchange Ltd. wants to launch a blockchain-enabled platform to expand trading at the exchange.

Since the value of cryptocurrencies started to decline in April, Nigeria still takes the lead in the adoption of cryptocurrencies more than any other nation, says CoinGecko after conducting a survey. Over 22 million Nigerians own and use cryptocurrencies, says Triple-A.

Nigeria introduced the eNaira in October 2021, the country’s first central bank digital currency (CBDC), with the aim to promote financial inclusion by enrolling Nigeria’s unbanked population. The eNaira is steadily gaining traction and is currently in its second phase.

According to Adesugba, the proposed zone will be the first of its kind in the West African region and is intended to function and offer crypto firms laws, regulations, and tax incentives that are beneficial to the industry. Adesugba stated that the digital hub would bring a great boast to the Nigerian digital economy and would also “widen employment opportunities” for citizens. Adesugba claims that the “goal is to engender a flourishing virtual free zone to take advantage of a near trillion dollar virtual economy in blockchains and digital economy.”

Adesugba added that “We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority, the directive of the Honourable Minister and the economic development agenda of President Muhammadu Buhari.”