Nigerian think tank, Soramitsu partner on blockchain study

A Nigerian government think tank has partnered with Japanese enterprise blockchain firm Soramitsu to expand blockchain research in the West African nation.

Soramitsu announced the collaboration with the Nigerian Institute of Social and Economic Research (NISER) this week, describing it as “a knowledge-industry partnership.”

Ahead of Soramitsu, the BSV Association’s (BSVA) has been educating Nigerians on blockchain technology and help them build solutions on-chain as the country moves toward digitalization. As of early 2024, the BSVA has enrolled 60,000 participants in its blockchain education programs.

NISER is a public policy think tank that has been at the center of public policy formulation in Nigeria for the past six decades. Its research has informed every other major socio-economic development plan in the country, including the current Medium Term National Development Plan that has placed digitalization at the heart of the country’s advancement.

Under the partnership, Soramitsu will offer its expertise in blockchain, including developing a central bank digital currency (CBDC). The company is best known for building Bakong, Cambodia’s CBDC platform, which has defied the odds to attract a majority of Cambodians. Bakong is reportedly used by over 10 million people in a country with 16.7 million people.

In stark contrast, Nigeria’s eNaira has failed to garner the interest of the West African nation’s 220 million residents. Africa’s first CBDC had only attracted 13 million users by July this year, with transaction volume hitting a paltry $48 million. The Central Bank of Nigeria’s (CBN) attempts to spark adoption failed to have any tangible impact.

CBN’s partnership with Soramitsu could reignite the CBDC. Besides Bakong in Cambodia, the Japanese firm is also working on a CBDC project with the Bank of Laos and the Central Bank of the Solomon Islands (CBSI).

In its announcement, the company revealed that beyond the CBDC, it would also collaborate with NISER on SORA and Hyperledger Iroha. The former is a blockchain monetary system founded by Soramitsu and running on the XOR token, while the latter is one of Hyperledger’s five blockchain implementations that focuses on permissioned ecosystems.

“Additionally, the partnership will explore and implement innovative projects using blockchain technology to promote financial inclusion, reduce economic inefficiencies, and contribute to Nigeria’s developmental goals,” the company added.

Nigeria remains Africa’s blockchain and digital assets leader. Its national blockchain policy, which was inaugurated last year, began implementation a month ago. It seeks to underpin Nigeria’s public service on the blockchain to enhance transparency and boost efficiency for a country whose public services have come under criticism. The policy also intends to stamp out corruption through blockchain’s transparency and immutability; PwC has estimated that corruption could cost up to 37% of the Nigerian economy by the decade’s end.

Apart from its national blockchain policy, Nigeria has begun integrating blockchain in educational institutions, with the School of Politics, Policy, and Governance (SPPG) earlier this year becoming the first to launch a blockchain-based verification system for academic credentials using VX Technologies’ AlphaDapp.

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