Nigeria Launches AI and Blockchain Training Initiative in Jigawa

Nigeria’s Vice President Kashim Shettima has announced a new initiative aimed at making Nigeria a leader in digital technology across Africa.

The AI Expertise Blockchain and Technology Training and Outsourcing Initiative, launched in Jigawa, will partner with tech company Gluwa to train 1,000 Nigerians annually in AI, blockchain, and other technologies.

Financial Support for MSMEs

President Bola Ahmed Tinubu introduced a financial grant of 150,000 nairas ($90) to support micro, small, and medium enterprises (MSMEs), promoting a home-grown fintech ecosystem.

This grant, which does not require repayment, was highlighted by Shettima during the initiative’s launch in Jigawa.

Additionally, Shettima inaugurated the 4th edition of the Expanded National MSMEs Clinic, a programme designed to support small businesses nationwide.

Crackdown on Cryptocurrency

Despite efforts to advance digital technology, Nigeria's approach to cryptocurrency remains stringent. In May, Tinubu banned peer-to-peer crypto trading with the naira to protect the national currency from devaluation and speculation.

Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), led a crackdown on Binance, the world's largest crypto exchange, halting all naira transactions and trading in Nigeria.

Binance faced charges of tax evasion and money laundering. One executive, Nadeem Anjarwalla, escaped custody but was found in Kenya.

Tigran Gambaryan, Binance’s head of financial crime compliance, remains in custody and is set to stand trial on behalf of Binance.

Binance executive Tigran Gambaryan

Cryptocurrency Trading Remains Strong

Despite regulatory challenges, cryptocurrency trading in Nigeria has remained robust. Between July 2022 and June 2023, trading volumes grew by 9%, reaching $56.7 billion, according to Chainalysis.

The government’s push to promote the eNaira, Nigeria’s central bank digital currency launched in 2021, is seen by some as a move to make the eNaira more popular.

Youth Investment in Cryptocurrencies

A study by KuCoin found that 35% of Nigerians aged 16 to 18 are investing in or trading cryptocurrencies. The country ranks as the top globally for cryptocurrency usage and ownership.

Economic issues, such as high inflation and a weak currency, continue to drive Nigerians towards cryptocurrencies as an alternative store of value.

Conclusion

While Nigeria is taking significant steps to enhance its digital tech capabilities through training initiatives, its restrictive stance on cryptocurrency presents a complex landscape for digital asset adoption.

The country’s regulatory environment and economic challenges will play crucial roles in shaping the future of digital technology and cryptocurrency usage in Nigeria.