The African giant, Nigeria, is currently abuzz with the excitement of new technology. This time, the impetus is fueled by the potential of blockchain. We hear, over and over, how blockchain is going to change everything from land registries to student data. But before we uncork the champagne, let's ask a tough question: is this a genuine leap forward, or just another case of shiny tech distracting from deeper systemic issues?

Blockchain Bandwagon? Or Real Transformation?

The narrative is compelling. Anambra State is digitizing land records. Lagos wants to tokenize real estate. Cross River promises bulletproof student data security. Plateau State envisions transparent procurement. Taraba State dreams of blockchain-powered everything. Even the Central Bank of Nigeria (CBN) is in the game with the eNaira. It's a full-blown blockchain bonanza!

Here's where my skepticism kicks in. Recall all of the hype around e-governance ten years ago? All that talk of cutting red tape, saving taxpayer dollars, eliminating graft, and giving power back to the people? Where are we now? Still standing in line with stacks of paperwork in triplicate and greasing palms to gain access to basic services. This is not to claim that the same is true for blockchain, but we ought to learn from history. Technology alone doesn’t change anything; it just scales what we’ve already built. If those systems are corrupt, dishonest or lazy, blockchain will just take corrupt, dishonest and lazy systems and make them faster and more opaque.

The problem isn’t that the technology doesn’t work (in theory, it usually does). The bigger question is whether the implementation will be strong, especially with respect to equity and longevity. Are we just putting a shiny new fancy label on top of the same old bureaucracies, and praying the magic fairies make it work? I see a lot of press releases and very little evidence of tangible improvements in the lives of ordinary Nigerians.

Regulation: The Elephant in the Blockchain Room

Let's talk about regulation. Or rather, the lack thereof. It appears that Nigeria’s enthusiasm for blockchain is outpacing its capacity to regulate the technology. And once again, we’re very quick to adopt the technology, and then incredibly slow to take steps to mitigate the potential harm.

Or take as another example the Lagos State real estate tokenization plan. Sounds innovative, right? What would occur when (not if) a tokenized asset becomes embroiled in a legal battle? Who adjudicates? What laws apply? Are investors adequately protected? Even more troubling — are there measures in place to prevent this sort of money laundering or other illicit activities?

These are not hypothetical questions. They are timely issues that require responsive leadership and unambiguous clarity. In the absence of a credible regulatory regime, Nigeria presents as a fertile ground for blockchain-enabled scams and financial crimes. We need to be proactive, not reactive. It’s high time the Feds stop pursuing clicks and impressions and begin writing realistic, enforceable rules. Otherwise, we're building a house on sand.

And while we’re at it, let’s touch on data privacy. Cross River State’s student data security initiative has earned them a leadership spotlight. Putting sensitive student information on a blockchain raises some very troubling ethical issues. Who controls access to this data? How is it protected from unauthorized use? What is your response plan in the event of a data breach?

The promise of “encrypted storage and analytics” is not a panacea. Encryption can be broken. Analytics can be used for nefarious purposes. We need federal guidelines on data governance, transparency, and accountability. This is why we must have independent oversight to ensure student data isn’t exploited and is kept in a safe and responsible manner. If not, we’re just swapping one type of risk for another.

Beyond Hype: Building a Sustainable Future

For now, Nigeria’s blockchain leap remains hope, not hype. The answer, as always, is complicated. The potential is undeniable. This feature, if properly utilized, could drastically reshape governance, improve transparency and accountability, and empower citizens like never before. Potential does not equal reality.

We need to focus on the following:

  • Capacity Building: Investing in training programs and educational initiatives to develop a skilled blockchain workforce.
  • Robust Regulation: Establishing clear and comprehensive regulations to protect consumers, prevent fraud, and promote responsible innovation.
  • Transparency and Accountability: Ensuring that blockchain projects are open, transparent, and accountable to the public.
  • Focus on Real-World Problems: Prioritizing projects that address pressing societal challenges, such as corruption, poverty, and inequality.
  • Long-Term Sustainability: Developing sustainable funding models and maintenance plans to ensure the long-term viability of blockchain initiatives.

The cNGN stablecoin More is better, but only if done responsibly and transparently The new cNGN stablecoin is definitely a move in the right direction. While the eNaira is a promising and daring experiment, it should be more convenient and easier to use, especially for the unbanked population. The collaboration between NMRC and House Africa is certainly a promising one. Now, it just has to be scaled up and replicated across the country.

It misses an opportunity to help Nigeria become a continental or global leader in responsible blockchain innovation. To strengthen our capacity to respond to that potential, we need to identify the hype. It’s a moment to take a deeper, more critical, more responsible, and certainly more ethical turn. It’s time to stop pursuing every new fad and begin constructing an inclusive, sustainable future for every Nigerian.

Remember when everyone was obsessed with 3D printing? Once completed, it claimed, the world would be forever changed by it. Now, where is it? It’s far less important than you might think. Blockchain could meet the same end if we’re not careful.