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Nigeria Updates Digital Asset Policies, Launches Compliance Program

Abdul

Published on Jun 21, 2024 at 9:00 PM Updated on Jun 21, 2024 at 8:20 PM

The country's vice president, Kashim Shettima, has said that Nigeria is prepared to surpass other developed nations economically and technologically. As part of Nigeria's plan for digital transformation and leadership in Africa, Shettima revealed this on Tuesday when he inaugurated the AI Expertise Blockchain and Technology Training and Outsourcing Initiative in Dutse, the capital of Jigawa State. In collaboration with the prominent tech firm Gluwa, the AI Expertise Blockchain and Technology Training and Outsourcing Initiative seeks to provide training in artificial intelligence, blockchain, and other cutting-edge technologies to 1,000 Nigerians every year. The Vice President urged Nigerian youngsters to embrace the initiative, stating that it is critical to the country's economic future, at the initiative's debut at the Yakubu Gowon NYSC Orientation Camp, Fanisau, Dutse. According to him: “We are not merely catching up with the rest of the world; we are poised to overtake them. This initiative offers its beneficiaries the chance to become part of a global workforce, driving innovation that will shape our future”. Together with outlining the initiative's wider goals, he said that the federal government is aiming to establish a nationwide network of tech centers that would sustain Nigeria's economic development for many years to come. The Vice President expressed gratitude for the collaboration with Gluwa, saying it is in line with President Tinubu's plan to transform Nigeria's digital technology space. He praised Gluwa for empowering Aella Microfinance Bank and enabling the flow of nearly N100 billion to two million Nigerians, while also acknowledging the substantial impact of the company. Jigawa State Governor Umar Namadi highlighted the significance of the initiative in his previous speech, calling it a unique chance that is right at the young people's doorstep. According to him, the new initiative prioritizes innovation and digital technologies and is in line with Jigawa State's 12-Point Agenda as well as the federal government's Renewed Hope Agenda. The governor went on to announce the creation of a new ICT & Digital Economy Agency, stating, that they are more committed than ever to re-establish Jigawa State as a significant ICT hub in Nigeria. Shettima had earlier announced the launch of the fourth iteration of the Expanded National Micro, Small, and Medium Enterprises (MSMEs) Clinic, revealing that President Bola Tinubu had issued an executive order directing the federal government to provide N150,000 grants to each state's business owners as part of its support for MSMEs nationwide. He said that the N150,000 that the president had allocated to each MSMEs was an outright grant that did not need to be repaid. One of the federal government's initiatives to facilitate business in Nigeria is the Expanded National MSME Clinics. These are a series of business forums that are arranged throughout the nation to offer MSMEs immediate solutions to problems they face. The first, second, and third editions of the clinics were introduced earlier this year in the states of Benue, Ogun, and Ekiti, respectively. The MSMEs sub-sector, according to Shettima, is the backbone of the country's economy and has been a top priority for the Tinubu administration. They not only account for over 45% of Nigeria's GDP and 96% of all businesses in the country, but they also provide a vital lifeline for 80% of the workforce. Malam Umar Namadi, the governor of Jigawa State, had earlier expressed gratitude to the federal government for granting the state's citizens dividends of democracy via the MSME Clinics and other similar initiatives dispersed around the region. Namadi called the initiative a unique chance for operators in the state's small business sector and encouraged both current and prospective entrepreneurs to use the services offered by the clinics.

The SEC announced its intention to revise these important rules in a public notice.
A specific timeframe for the onboarding procedure has been established by the SEC.

Regulators in Nigeria have updated their policies on the issuance, offering, exchange, and custody of digital assets. The SEC announced its intention to revise these important rules in a public notice. A more thorough and adaptable regulatory framework, more suited to the intricacies of digital asset markets, is the goal of the amendment process.

The SEC established a unique compliance program. It is known as the Accelerated Regulatory Incubation Programme (ARIP), which is a component of this regulatory reform. Also, Virtual Assets Service Providers (VASPs) may find a way to conform to the new rules and regulations with the help of this program.

Regulatory Action Over Non-compliance

Moreover, a specific timeframe for the onboarding procedure has been established by the SEC. In order to enable VASPs to participate in the ARIP, according to the notice on the SEC’s website.

Furthermore, through the SEC ePortal, one may access the onboarding procedure. It is imperative that VASPs finish the application procedure within 30 days after the circular date. Even if its purpose is to enhance compliance. In addition, the SEC has warned VASPs that it would take regulatory action. Against those who do not comply with the circular’s instructions.

Following the appointment of Emomotimi Agama as the new Director-General at the SEC, the original Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody were amended in May 2022.

In the meantime, repositioning the Nigerian market requires authorities and the government to appropriately oversee the virtual assets sector, not via crackdowns, shutdowns, or clampdowns. A proposed regulation change by the Nigerian Securities and Exchange Commission (SEC) in March increased the registration fee for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).

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Abdul

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.