How the Nigeria Economy can benefit from the use of blockchain technology

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Introduction

Much have been talked about on the blockchain and it's underlying potentials. However, the concept of blockchain may not be clear to everyone. So let's start by defining what a blockchain is.

The blockchain is a distributed ledger that records, stores and transfers data efficiently independently of any intermediary or central authority. The blockchain is also considered very secure because every transaction that goes on blockchain is time-stamped and encrypted.

See also : Things about blockchain you felt too embarrassed to ask

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An economy is only as good as its gross domestic product (GDP), political climate, and technological development.

Many Africa economies suffer from low GDPs, corrupt political systems, and poor internet coverage, Unfortunately, Nigeria happens to be one of them. The blockchain technology could help provide a solution and improve its economy.

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Areas the blockchain could greatly be of help

• Budget Tracking and Transparent Spending

The biggest challenge Nigeria and most African country currently face is the issue of corruption. It has been reported that Africa loses over $148 annually due to corruption Read more. Another survey carried out last year by OBI (Open Budget Index) scored Nigeria 17/100 i.e 17%, ranking it 90th out of 115 countries and 23rd out of 38 African Countries.

Corruption has long been a stain in the country, to help address this long lasting dilemma - corruption in the area of budget spending, the blockchain should be applied to help and improve tracking of budget and expenditures incurred.

Employing the blockchain will greatly help and drastically reduce expenditures incurred as all spending will be easily traced and issues of corruption and any form of embezzlement will property handled. Thanks to the blockchain, all transactions will also be easily verifiable and easily scrutinized.

• Free and Fair Election

The election process in Nigeria over the years has been ridden with corrupt and bad practices, leaving many citizens to doubt the credibility of the whole electoral process.

Former INEC Chairman, Professor Attahiru Jega in a lecture in 2015, titled ”Challenges of Fraud free Elections under a democratic dispensation”, he listed funding, insecurity and apathy/inactivity of it's citenzenry as some challenges facing the Nigeria electoral process

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The use of blockchain technology in elections can greatly help in reducing the corrupt practices and regain the trust of it's citizens as all election activity will be transparent. All that is needed to be done, is to create a mobile voting blockchain platform, here, citizens will be able to cast their votes using their smartphones. As they record or cast their votes it will be permanent stored in decentralized blockchain ledger, here records cannot be tampered with or altered.

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For the rural areas that lack Internet connectivity or access, a stationary devices backed by blockchain can be used.

Voting with the use of the blockchain, will help reduce cost used in conducting an election, it will also ensure transparency making election free and fair

• Improved Import and Export Trading

The benefits the blockchain technology can bring to the area of import and export trading are numerous. The current economy suffers from theft, smuggling, issues of customs control. The blockchain can come in to improve and salvage the issues been faced here.

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The blockchain ensures decreased cost of transactions as certain intermediaries are eliminated. Also fast trading between businesses is ensured, it also eliminates barriers that affects smooth trading such as frauds and customs delay. Removing all the barriers that comes with cross border trading, will significantly improve the GDP of Nigeria.

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Conclusion

It's just a matter before every institution and government tap into the power of the blockchain. The blockchain enables a donation to be traced through every step, from donor to recipient, and record every action and intermediary along the way.

Employing the blockchain technology will ensure accountability, transparency and efficiency in the economy. Some countries have already started exploring the uses and applications of the blockchain, Nigeria should also not fail to join the bandwagon.

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Thanks for Reading

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Reference

• http://bitcoinafrica.io/2018/01/02/african-economies-can-benefit-blockchain-technology/
• https://techpoint.ng/2018/03/19/blockchain-nigerian-economy/

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