Asiwaju Tinubu’s party has said it will set up an advisory board to study regulations regarding blockchain and virtual asset services, if it is elected president. The All Progressives Congress also said it “will work with the Central Bank and the financial sector to carefully review and better optimise the exchange rate regime.”
A ‘Business-Friendly Regulatory Framework’
In its recently unveiled manifesto, Nigerian presidential aspirant Asiwaju Bola Tinubu’s 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 party of current Nigerian President Muhammadu Buhari, added that where necessary the committee will propose changes that bring about “a more efficient and business-friendly regulatory framework.”
According to the APC’s 80-page manifesto, the Tinubu government in fact wants to reform Nigeria’s policy towards information technology.
“We will reform government policy to encourage the prudent use of blockchain technology in finance and banking, identity management, revenue collection and the use of crypto assets,” an excerpt from the APC manifesto states.
During the outgoing President Buhari’s tenure, the Nigerian government and the Central Bank of Nigeria (CBN) have pursued policies that discourage the use of crypto assets. In addition, the CBN’s February 5, 2021, directive against crypto assets as well as the subsequent crackdown against entities defying the order are thought to have forced some startups to halt operations in Nigeria.
The APC manifesto states that the Tinubu government will prioritise putting in place regulatory structures that are business friendly. In addition, the manifesto states that an APC government will “also encourage the CBN to expand the use of our digital currency, the e-naira.”
Exchange Rate ‘Most Evocative Monetary Issue’
Meanwhile, concerning the local currency’s exchange rate, the APC acknowledges that this may be the “most evocative monetary issue of the day.” The party argues, however, that since it influences the costs of imports, the competitiveness of exports, and net capital flows, management “cannot be ignored nor left to the vagaries of an unrestrained market.”
As previously reported by Bitcoin.com News, the naira’s plunge versus the U.S. dollar — albeit on the parallel market — has partly contributed to the rise of Nigeria’s inflation rate. Nigeria’s inability to generate enough foreign exchange to meet its import bill is often cited as the main cause of the naira’s continuing depreciation. Even though the currency fell against the greenback by just below N750;$1, CBN maintains the official peg for the naira at N450.$1.
The APC manifesto suggested that it would adopt a new approach to managing the exchange.
“To ensure that exchange rate policy harmonises with our goals of optimal growth and job creation driven by industrial, agricultural and infrastructural expansion, we will work with the Central Bank and the financial sector to carefully review and better optimise the exchange rate regime,” the APC said.
To receive a weekly update about African news, sign up here
Let us know your opinions on the story. Comment below and let us know how you feel.
Images from FlickrShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or imply loss.