Nigerian govt moves to partner with Binance to create virtual free trade zones in the Country

By: Damian Okonkwo

The Federal government of Nigeria has disclosed its plans to partner with Binance and Talent City the two most popular digital assets exchanges operating in the country as to enable them to create Virtual Free Trade (VFT) zones in the country.

This will offer the Nigerian government more opportunities to utilize the wealth in blockchain technology and ease its dependence on oil. Similarly, the partnership also will help to create more avenues for the integration of the eNaira across the globe as an official Central Bank Digital Currency (CBDC) for the country.

According to the reports by Prof. Adesoji Adesugba - the Managing director of the Nigeria Export Processing Zones Authority (NEPZA), the goal of this partnership is to establish a flourishing Virtual free trading zone in the country to take advantage of the near trillion dollars Virtual economy found in blockchains and the digital economy at large. This will further enhance the citizens' participation in the digital economy and encourage the use of eNaira across the country.

Furthermore, according to NEPZA, the current partnership is geared towards creating more economic opportunities for the citizens in line with the goals of the President and minister for economic development within the country.

The partnership agreement meeting was held last Friday between the two companies. Binance was represented by its Executive Director for Regional Strategic Partnership - Nadeem Ladki as well as its Senior Legal Advisor - Luqman Edu. The Talent city company was also represented by the Chief Executive officer of Talent City. Also present at the meeting was the Director of Project and Procurement for the Nigeria Export Processing Zones Authority (NEPZA).

From the foregoing, it is evident that the Nigerian government is now seeking to harness the vast wealth opportunities latent in blockchain technology. Despite the ban placed on the banks last year on dealing directly with Crypto exchange, the government is now gradually going back to them for mutual partnerships to benefit the country.

Earlier in May, the Nigerian government had released new rules to guide all Crypto exchanges operating in the country including obtaining a license to do so.

This time the government is ready to enter into a more meaningful partnership with Binance to create a Virtual digital hub in Nigeria similar to those obtainable in Dubai and other developed countries. However, the partnership discussion is still in progress and has not in anyway lifted the bans placed on banks from facilitating Cryptocurrency transactions within the country.