Nigerian presidential candidate Asiwaju Bola Tinubu’s party has promised to establish an advisory committee to review regulations governing blockchain and virtual asset services if it wins the next election The party has pledged to do so. The All Progressives Congress also said it would “work with the central bank and the financial sector to carefully review and better optimize the exchange rate regime.”
a business-friendly regulatory framework”
in his recently released manifestoNigerian presidential candidate Asiwaju Bola Tinubu’s political party, the All Progressives Congress (APC), said it plans to “establish an advisory committee to review the existing regulatory environment governing blockchain technology and virtual asset services.” The APC, which is also the political party of current Nigerian President Muhammadu Buhari, added that if necessary, the committee will propose changes that will result in a “more efficient and business-friendly regulatory framework.”
According to the APC’s 80-page manifesto, the Tinubu administration actually wants to reform Nigeria’s policy toward information technology.
“We will reform government policies to encourage the prudent use of blockchain technology in finance and banking, identity management, revenue collection, and the use of crypto assets,” an excerpt of the APC’s manifesto states.
During the tenure of outgoing President Buhari, the Nigerian government and the Central Bank of Nigeria (CBN) have pursued policies that discourage the use of crypto assets. Furthermore, the CBN’s February 5, 2021 directive on crypto assets and subsequent crackdown on entities that defy the directive are believed to have forced some startups to cease operations in Nigeria.
However, according to the APC manifesto, the Tinubu administration will prioritize putting in place a business-friendly regulatory framework. Furthermore, the manifesto states that the APC administration will “encourage the CBN to expand the use of e-naira, a digital currency.”
Exchange rate is “the most symbolic monetary issue”
{34
Meanwhile, on the exchange rate of the local currency, the APC admits that this may be “the most evocative monetary issue today. However, because of its impact on import costs, export competitiveness, and net capital flows, its management “cannot be ignored or left to the whims of free markets,” it argues.
As previously reported by Bitcoin.com News, the naira’s plunge against the U.S. dollar, albeit in a parallel market, has contributed to Nigeria’s rising inflation rate. Nigeria’s inability to secure sufficient foreign currency for imports is often cited as the main cause of the naira’s depreciation. However, despite the currency’s decline to just under $750 against the dollar, the CBN continues to officially peg the naira at just under $450
However, in its manifesto, the APC suggested that it would take a different approach to currency management.
The APC said it would “carefully review and better optimize the exchange regime in cooperation with the central bank and the monetary sector to ensure that exchange rate policy is in harmony with our goals of optimal growth and job creation through industry, agriculture, and infrastructure expansion.”
Sign up for email here to have the latest news from Africa sent to your inbox each week.
Image credits: Shutterstock, Pixabay, Wiki Commons