Canada’s central bank has halted its plans to develop a Central Bank Digital Currency (CBDC), focusing instead on research as other nations like China and Nigeria press ahead. The Bank of Canada initially launched the project in 2017 to explore the potential of a digital Canadian dollar. However, after years of investigation and public consultations, the bank has decided to rethink its approach due to low public interest and security concerns.
A recent survey revealed that 87% of Canadians said they would never use a digital currency, with 92% expressing a preference for traditional payment methods. Major concerns included cybersecurity threats and the privacy of digital transactions. Despite this, the central bank had maintained that the digital dollar would not replace paper currency but serve as a simplified way to make online payments.
While Canada shifts away from its CBDC project, other countries are making progress. China’s digital yuan pilot, for example, has already facilitated nearly $986 billion in transactions, making it the largest initiative worldwide. Global efforts to introduce CBDCs continue to grow, driven in part by geopolitical events and changing payment technologies.
The National Information Technology Development Agency (NITDA) and the National Bureau of Statistics (NBS) have formed a strategic partnership to leverage data and technology to transform Nigeria’s digital landscape, aligning closely with President Bola Tinubu’s ‘Renewed Hope Agenda.’ By combining NITDA’s expertise in digital transformation with NBS’s data-driven insights, the collaboration is expected to significantly improve public service delivery, drive sustainable economic growth, and enhance policy-making.
In particular, the partnership focuses on data exchange and integration, facilitating more informed decisions across sectors such as infrastructure development, resource allocation, and urban planning, ensuring that initiatives are grounded in accurate and timely data. Moreover, the partnership emphasises fostering innovation and economic growth.
NITDA and NBS aim to create a digital ecosystem that supports tech startups and entrepreneurship, positioning Nigeria as a leader in the global digital economy. That collaboration is designed to attract foreign investment and create job opportunities, contributing to long-term economic prosperity.
Additionally, the partnership is committed to bridging the digital divide through digital skills development. By promoting digital literacy and modernising data processes with tools like Geographic Information Systems (GIS), NITDA and NBS will enhance decision-making and governance while empowering more Nigerians to participate in the digital economy and fostering inclusive growth.
The Nigerian Communications Commission (NCC) has introduced the QoS Regulations 2024 to improve the quality of telecommunications services in Nigeria. These new regulations specify key performance indicators (KPIs) for network segments, including 2G, 3G, and 4G, focusing on critical metrics such as Drop Call Rates, Call Setup Success Rate, and Traffic Congestion.
Non-compliance with these standards will result in a fine of N5 million, with an additional penalty of N500,000 per day for continued infractions. Telecom companies must submit monthly QoS reports, and the NCC will evaluate these reports through drive tests, consumer surveys, and data from Network Operating Centres (NOCs).
The following regulatory initiative reflects the NCC’s response to the 50% service target set by Dr Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy of Nigeria. The Commission is committed to meeting this target by the end of the year and has set ambitious goals for broadband penetration, data speeds, and coverage in the coming years. The new approach emphasises detailed, localised data collection, allowing the NCC to implement targeted solutions and regulatory actions to enhance the consumer experience.
The introduction of these regulations also comes at a time of financial strain for telecom operators, who are dealing with the impacts of Naira devaluation and high inflation. These economic challenges have reduced network capacity investment, affecting service quality. In response, operators have requested tariff increases to mitigate their financial difficulties. The NCC’s new regulations and enforcement actions will be crucial in addressing service quality issues while balancing the economic realities faced by the telecom industry.
The Programme Manager of Green and Digital Economy at the European Union Delegation to Nigeria and ECOWAS, Frank Okafor, stated that the Participatory Policy Implementation Framework (PPIF) will enhance digital transformation and innovation. This framework aims to address the gap in digital policies and improve their implementation at the state level, following the challenges of implementing policies.
Developed by NITDA and GIZ/DTC Nigeria, the PPIF was handed over to the Ministry of Communications, Innovation and Digital Economy in July for federal scaling and will be piloted in states to encourage adoption and integration. The PPIF seeks to bridge the gap between policy formulation and implementation through a transparent and inclusive approach involving stakeholders from various sectors. It is expected to lead to improved policy implementation, increased local adaptability, and stakeholder empowerment. Supported by Digital Transformation Centre Nigeria and funded by the EU and BMZ, the initiative is implemented by GIZ.
Last year, the devaluation of the Naira resulted in a foreign exchange gain of 8.6 billion Naira (about USD 5.4 million), according to a World Bank audit of Nigeria’s Digital Identification for Development (ID4D) project.
This financial boost is expected to help the digital identity authority fund upgrades to the national ID system. The ID4D project, which primarily deals in US dollars and euros, benefited from the higher exchange rates when converting foreign funds back into Naira. In 2023, the Central Bank of Nigeria, through accounts managed by the National Identity Management Commission (NIMC), received $2.538 million and €3.03 million for the project. As the Naira continues to decline against major currencies, the ID4D project will likely gain further, allowing it to advance planned initiatives. These include investments in backup power systems, the establishment of a Computer Emergency Response Team (CERT) and Security Operations Center (SOC), data recovery center upgrades, and new software for a contact center and customer relationship management (CRM).
The ID4D project, funded by the World Bank, the French Development Agency, and the European Investment Bank, aims to issue 148 million digital IDs by June 2024. With over 109 million IDs already issued and additional funds available, the project is progressing well, with a potential to enhance birth registration rates, currently at 30 percent.
Meta Platforms announced on Wednesday that it had removed approximately 63,000 Instagram accounts in Nigeria involved in financial sexual extortion scams, primarily targeting adult men in the United States. These Nigerian fraudsters, often called ‘Yahoo boys,’ are infamous for various scams, including posing as individuals in financial distress or as Nigerian princes.
In addition to the Instagram accounts, Meta also took down 7,200 Facebook accounts, pages, and groups that provided tips on how to scam people. Among the removed accounts, around 2,500 were part of a coordinated network linked to about 20 individuals. These scammers used fake accounts to conceal their identities and engage in sextortion, threatening victims with the release of compromising photos unless they paid a ransom.
Meta’s investigation revealed that most of the scammers’ attempts were unsuccessful. While adult men were the primary targets, there were also attempts against minors, which Meta reported to the National Centre for Missing and Exploited Children in the US. The company employed new technical measures to identify and combat sextortion activities.
Online scams have increased in Nigeria, where economic hardships have led many to engage in fraudulent activities from various settings, including university dormitories and affluent neighbourhoods. Meta noted that some of the removed accounts were not only participating in scams but also sharing guides, scripts, and photos to assist others in creating fake accounts for similar fraudulent purposes.
Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has imposed a fine of $220 million on Meta Platforms Inc., the parent company of Facebook, for ‘multiple and repeated’ breaches of local consumer data protection laws in a move to enforce data privacy regulations.
The FCCPC’s investigation into Meta began last year following Nigerian consumers’ complaints regarding personal data mishandling. The investigation revealed that Meta had failed to comply with several provisions of Nigeria’s data protection regulations, including obtaining proper consent from users before collecting their data and ensuring the security of the information gathered, a direct violation of the Nigeria Data Protection Regulation (NDPR), following a 38 months investigation. The NDPR, enacted in 2019, mandates that organisations must seek explicit consent from individuals before collecting their personal information, aiming to safeguard the privacy of their citizens.
The fine is one of the largest penalties imposed by an African regulator on a global tech company. It signals a growing trend among nations to assert digital sovereignty and enforce stringent data protection measures. The action against Meta is expected to have far-reaching implications, prompting other multinational companies to reassess their data practices in Nigeria and potentially other African markets.
The following development highlights the regulatory pressure on technology companies to prioritise data protection. As digital services expand globally, enforcing stringent data privacy laws is becoming more critical. For Nigeria, the fine against Meta expresses the country’s commitment to holding multinational companies accountable and protecting the rights of its citizens in the digital landscape.
The Nigerian Government has announced the development of a locally-made blockchain called ‘Nigerium’, designed to secure national data and enhance cybersecurity. The National Information Technology Development Agency (NITDA) is leading this initiative to address concerns about reliance on foreign blockchain technologies, such as Ethereum, which may not align with Nigeria’s interests.
NITDA Director General Kashifu Abdullahi introduced the ‘Nigerium’ project during a visit from the University of Hertfordshire Law School delegation in Abuja. He highlighted the need for a blockchain under Nigeria’s control to maintain data sovereignty and position the country as a leader in the competitive global tech landscape. The project, proposed by the University of Hertfordshire, aims to create a blockchain tailored to Nigeria’s unique requirements and regulatory framework.
The indigenous blockchain offers several advantages, including enhanced security, data control, and economic growth. By managing its own blockchain, Nigeria can safeguard sensitive information, improve cyber defence capabilities, and promote trusted transactions within its digital economy. The collaboration between the private and public sectors is crucial for the success of ‘Nigerium’, marking a significant step towards technological autonomy.
If successful, ‘Nigerium’ could place Nigeria at the forefront of blockchain technology in Africa, ensuring a secure and prosperous digital future. This initiative represents a strategic move towards maintaining data sovereignty and fostering innovation, positioning Nigeria to better control its technological destiny.
A new International Monetary Fund (IMF) report reveals that Nigeria and several other developing nations need more digital infrastructure to effectively deploy AI. The shortfall persists despite Nigeria’s recent launch of its first Multilingual Large Language Model (LLM) and unveiling of an AI strategy in April. The IMF’s ‘AI Preparedness Index,’ which evaluates 174 economies, highlights that many developing countries like Nigeria are trailing in AI readiness due to inadequate digital infrastructure.
According to the Index’s interactive map, most African nations, with exceptions like Namibia, Botswana, and South Africa, exhibit low preparedness for AI. Wealthier economies are generally better equipped for AI adoption, and the IMF warns that the disparity could exacerbate existing global inequalities. The report suggests that while AI has the potential to enhance productivity and expand opportunities in countries like Nigeria, it may also widen the gap between those who can leverage the technology and those who cannot.
To address Nigeria’s challenges, the IMF recommends that emerging markets and developing economies invest heavily in digital infrastructure and worker training. For advanced economies, the priority should be on expanding social safety nets and fostering AI innovation and integration. International coordination is also essential to establish regulations that protect against AI risks and abuses while building public trust in the technology.
This week, Nigeria’s markets regulator has ordered the world’s largest cryptocurrency exchange, Binance, to halt its operations in the country. The move follows Nigeria’s central bank’s decision in 2021 to ban banks and financial institutions from dealing in or facilitating transactions in digital currencies. The Nigeria’s Securities and Exchange Commission said that Binance Nigeria Limited, which was soliciting Nigerian investors through a website, was illegal. The order indicated that the company was not registered or regulated, making it illegal.
Despite the ban, Nigeria’s young, tech-savvy population has eagerly adopted cryptocurrencies, for example using peer-to-peer trading offered by crypto exchanges to avoid the financial sector ban. In an effort to find a middle ground between an outright ban on crypto assets and their unregulated use, Nigeria’s SEC published a set of regulations for digital assets last year.
As a result of the ban and the SEC’s actions, Binance is now required to halt its operations in Nigeria. It remains to be seen how the Nigerian authorities will implement the regulations and how the cryptocurrency industry will evolve in the country in the future.
Earlier this month the U.S. Securities and Exchange Commission (SEC) also sued Binance and Coinbase for allegedly breaching its rules.
