Introduction

Nigeria is a land of hustlers. As a Nigerian, the fear of lurking poverty, often referred to as 'sapa,' is very real. This fear has been one of the driving forces that makes us some of the smartest and most innovative people in the world. When Blockchain emerged in Nigeria, it felt like the new oil money. Even with little to no understanding, most Nigerians were eager to learn about it. While these curious Nigerians explored the realm of Blockchain with limited knowledge, there were also scavengers waiting to take advantage of their time and money.

In as much as Web3 holds the promise of reshaping Nigerian industries, promoting transparency, and empowering many Nigerians. There are many obstacles hindering the implementation of the Web3 technology in Nigeria. In this article, we will explore these obstacles and shed light on some of the challenges that Nigeria faces in embracing this groundbreaking technology.

6 Challenges facing the widespread of blockchain technology in Nigeria

1.Absence of a proper regulatory rules:

Nigeria currently lacks clear and comprehensive regulations regarding cryptocurrencies and blockchain technology. During the last bull run in 2020, I held some XRP tokens which tripled in price. Unfortunately, I couldn't sell these tokens at their peak due to the crypto situation in the country at the time. The absence of regulatory clarity has made it difficult for businesses and individuals to confidently engage with Web3 technologies.

Fortunately, as of May 3, 2023, the Federal Ministry of Communications and Digital Economy has approved a National Blockchain Policy for Nigeria. This policy was revealed through a tweet on their official X (formerly Twitter) handle. The statement conveys that the vision of the Policy is to create a Blockchain-powered economy that supports secure transactions, data sharing, and value exchange between individuals, businesses, and the Government. While there is no public document available yet, this marks a significant step toward integrating this technology in the country.

2. Limited Internet Access:

One of the fundamental problems hindering Web3 adoption in Nigeria is limited internet access. I mean, the cost of data subscriptions here in Nigeria is suffocating. Aside from the cost, internet network stability is also a concern. While major cities have relatively stable internet connectivity, rural areas often lack access to high-speed internet. This digital divide hampers the participation of a significant portion of the population in Web3 applications and services.

3. Lack of Stable Electricity:

If you're Nigerian, then you're no stranger to the electricity problem. Sometimes it feels like the Power Holding Company of Nigeria, commonly known as 'NEPA,' takes joy in showing us 'shege.' This chronic electricity supply issue in Nigeria has greatly affected the widespread adoption of Web3 technology in the country, because a stable electricity supply is a necessity in this space.

4. Trust and Security Concerns

The security and trust issues surrounding blockchain technology are another hurdle. While blockchain is renowned for its security features, the average Nigerian might be skeptical about its safety, given the prevalence of online scams and fraud. Building trust in blockchain technology is essential to overcoming these challenges in Nigeria.

5. Lack of Awareness:

While Nigeria may hold the number one spot for crypto adoption in Africa, it still lacks a proper educational system for people to learn about cryptocurrencies, how they work, and why they should use them. A significant number of Nigerians have little to no knowledge of Web3, leading to confusion and a lack of understanding about blockchain technology. This, in turn, contributes to people's reluctance to adopt this technology. Thanks to platforms like NODO, which are currently enlightening and teaching Nigerians about blockchain even at the grassroots level, this problem is gradually being eradicated.

6. Scams and Fraud:

I will say this is one of the greatest challenges Nigeria is currently facing in this space. We have seen the likes of MMM and a whole lot of Ponzi-related projects where people are just looking for ways to multiply their money in a minute. Nigerians, being lovers of quick money, tend to fall victim to projects posing as Web3 projects, but in the long run, it's another big scam. This has made a lot of people scared and eroded the trust in Web3 among many Nigerians, as they're not sure if it is legit or if they are about to get scammed.

Conclusion

Although the adoption of blockchain technology in Nigeria faces several challenges, positive factors still shine through. Platforms like NODO and many more are actively supporting projects and educating Nigerians about this technology from the grassroots. This creates a favorable environment for the masses to embrace the technology. Additionally, with the new blockchain policy being signed and a growing number of Nigerian youths becoming crypto-savvy, the future of Web3 appears promising in Nigeria.