Report says that blockchain technology could substantially add $29 billion to the Nigeria’s Gross Domestic Product (GDP) by 2030.
The new report was released by Enhancing Financial Innovation and Access (EFInA) and predicted that blockchain technology could address barriers to financial inclusion.
Titled, ‘Potential of Blockchain for Financial Inclusion in Nigeria,’ the report outlined the potential of blockchain to drive financial inclusion and illustrates potential use cases of blockchain technology.
Driving financial inclusion in Nigeria has been highlighted by the Central Bank of Nigeria (CBN) as a key objective.
However, EFInA’s 2020 Access to Financial Services in Nigeria Survey highlighted that financial inclusion in Nigeria stands at 64 per cent, falling short of the National Financial Inclusion Strategy of achieving 80 per cent financial inclusion by 2020.
The study stated that blockchain-enabled solutions could support progress towards the Nigeria’s financial inclusion targets and address some of the key challenges around financial inclusion such as lack of formal ID, high transaction charges, and lack of transparency.
According to the report, blockchain technology has the potential to revolutionise the Nigerian economy, and increase Nigeria’s GDP by $29 billion by 2030, mainly by instilling trust in business, government transactions, and processes.
It identified four key use cases of blockchain technology in Nigeria – Enabling Identity Management, Payments, Access to Finance, and Land Titling and Registration – outside of cryptocurrency, which is a major application of blockchain technology and a recurring topic of discussion amongst regulators and government entities around the world today.