Nigerian gov supports AI initiatives with $290K in grants

October 15, 2023 Coin Telegraph

Nigerian gov supports AI initiatives with 0K in grants

The recently introduced Nigeria Artificial Intelligence Research Scheme is designed to facilitate the widespread utilization of AI to drive economic advancement.

The Nigerian Minister of Communications, Innovation and Digital Economy, Bosun Tijani, revealed on Friday, Oct.13, that the government intends to grant 5 million naira ($6,444) to 45 artificial intelligence (AI)-focused startups and researchers.

This initiative was disclosed by the minister in a post on X (formerly Twitter) and is part of the recently introduced Nigeria Artificial Intelligence Research Scheme, which is designed to facilitate the widespread utilization of AI to drive economic advancement.

As outlined on the scheme’s official website, the focus areas include agriculture, education and workforce, finance, governance, healthcare, utility and sustainability. To be eligible for a grant, applicants must form a consortium comprising a startup or tech company, a researcher from a Nigerian university or a foreign researcher, according to the ministry.

To support the mainstreaming of the application of Artificial Intelligence for economic prosperity, we’ve launched the Nigeria Artificial Intelligence Research Scheme to fund 45 consortia of startups and researchers to allow them explore further opportunities to deepen their… pic.twitter.com/CaD5Vqs8Du
— Dr. 'Bosun Tijani (@bosuntijani) October 13, 2023

Applicants should present a research proposal aligned with the Ministry of Communications, Innovation and Digital Economy’s AI focus areas. Furthermore, they must provide a comprehensive proposal highlighting the project’s potential economic impact in Nigeria.

Applicants must have a proven track record of excellence in research or entrepreneurship and are expected to publish at least one peer-reviewed article within one year of receiving the grant.

In August, the Nigerian government extended an invitation to scientists of Nigerian heritage, as well as globally renowned experts who have worked within the Nigerian market, to collaborate in formulating its National Artificial Intelligence Strategy.

The application period commences on Oct.13, 2023, and concludes on Nov. 15, 2023. The ministry has indicated that a panel of AI specialists will assess the proposals.

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Central Bank of Nigeria: eNaira no threat to financial stability

October 11, 2023 Coin Telegraph

CBDC

Nigeria’s central bank issued a press release in response to “news items on some media platforms,” suggesting that the eNaira threatens Nigeria’s financial stability.

The Central Bank of Nigeria (CBN) had to publicly insist that its eNaira project — one of the world’s first operating central bank digital currencies (CBDC) — doesn’t threaten the country’s financial stability.

The press release from the CBN came out on Oct. 9 in response to “news items on some media platforms,” suggesting that the eNaira threatens Nigeria’s financial stability. Some news pieces — for example, the one published in a daily Nigerian newspaper, Punch, point to the CBN’s recently released report called “Economics of Digital Currencies: A Book of Readings.”

In this report, CBN experts highlight the gradual rise of eNaira adoption, marked by 0.2% share if compared to Nigerian banks’ liquidity. They also admit the simple fact that the funds held by citizens in the eNaira wallets can’t be used by commercial banks. The very hypothetical threat that could arise from this observation is the lack of liquidity suffered by the banks in the case of total adoption of eNaira. However, such fear is one of the fundamental theoretical aspects of the discussion about any CBDC.

In its release, CBN doesn’t do much explaining, limiting itself to a plain rejection of the claims in the media and referring to the “in-depth understanding of CBDCs” ingrained in its report:

“The eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interfaces. We encourage Nigerians to embrace the technology for, amongst other things, greater financial inclusion.”

A recent global survey featuring respondents from 15 countries indicates that Nigeria has the most cryptocurrency-aware population in the world. According to a joint study by ConsenSys and YouGov, 99% of Nigerians are more knowledgeable about Web3 than people in major economies like the United Kingdom, the United States, Japan and Germany.

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Blockchain could have prevented Nigeria’s naira scarcity — Local experts

September 8, 2023 Coin Telegraph

CBDC

According to Christopher Eniayemo, the decision to print new naira notes could have occurred via DeFi, involving Nigerians and aiding readiness for the change.

Blockchain technology can help solve economic problems in Nigeria and throughout the African continent, according to a group of local blockchain experts who cited Nigeria’s currency flow shortage as a case study.

At the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023, held in Nigeria’s capital, Abuja, stakeholders discussed the decision by the previous government to print new naira notes — Nigeria’s fiat currency — and the country’s recent efforts to increase central bank digital currency (CBDC) adoption, which both led to a shortage in the flow of naira at the time.

According to Christopher Eniayemo, a co-founder of Sahara ICP Hub West Africa, the decision to print new naira notes could have been made within the decentralized finance (DeFi) system, allowing Nigerians to have a say and helping them prepare better for the switch.

“Bringing blockchain system to Nigeria and Africa as a whole will help promote the advancement of DeFi and give citizens control over their own monies and economy.”

Blockchain technology provides the technical infrastructure and principles that empower DeFi to operate in a decentralized, transparent and secure manner, offering users a wide array of financial services without the need for traditional financial intermediaries.

However, the current Nigerian President, Bola Tinubu, released a manifesto during his campaign, which, if implemented, would allow the use of blockchain technology and cryptocurrencies in the nation’s banking and finance sector.

The manifesto suggests reviewing existing Nigerian Securities and Exchange Commission regulations on digital assets to make them more business-friendly. The new regulation provides a framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.

In 2022, Nigeria imposed limits on the amount of cash individuals and businesses can withdraw from banks and ATMs in an attempt to push a “cashless-Nigeria” policy and increase the use of its CBDC, the eNaira.

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Africa’s blockchain journey begins with poverty alleviation — Sumotrust CEO

September 8, 2023 Coin Telegraph

Africa

Africa must erase poverty and help people into the middle class to drive faster blockchain technology adoption.

There has been a resounding call for Nigeria, and Africa in general, to incorporate blockchain technology into its mainstream living. However, during a fireside chat involving stakeholders in the Nigerian blockchain community, it was noted that poverty has to be conquered first before blockchain technology can be properly incorporated into African society.

At the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023, held in Abuja, the nation’s capital, GT Igwe Chrisent, the CEO of Sumotrust & Truzact, an online savings and investment platform stated that hunger and poverty first need to be eradicated from Africa before a better level of blockchain technology incorporation can be achieved.

*Sumotrust & Truzact CEO at the SIBAN Digital Assets Summit 2023.*

According to a World Bank report titled “A Better Future for All Nigerians: Nigeria Poverty Assessment 2022,” just 17 percent of Nigerian workers hold the wage jobs best able to lift people out of poverty.

In Chrisent’s view, being able to erase the poor class in general and move them to the middle class would be the biggest driver of faster blockchain technology incorporation. This is to enable them to afford three square meals daily and have a little extra to save. However, the stability of the economy in Africa is key to establishing this.

In his words:

“ If we do not fix that, we’ll keep having these conversations over and over again”

Despite the extra scalability that comes from incorporating blockchain technology as a nation and continent, individuals cannot focus on exploring them while still battling with the problem of basic amenities, said Chrisent.

Despite the poverty challenges, Nigeria has emerged as one of the most active countries in terms of adoption and curiosity about Bitcoin and other cryptocurrencies. According to data from Google Trends, Nigeria ranks second by search interest for the keyword “Bitcoin,” behind El Salvador.

The current Nigerian President, Bola Tinubu released a manifesto during his campaign which, if implemented, would enable the use of blockchain technology and cryptocurrencies in the nation’s banking and finance sector.

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Nigeria central bank missed opportunity for blockchain regulation in 2021 — Convexity CEO

September 7, 2023 Coin Telegraph

Ban

Adedeji Owonibi stated that the Central Bank of Nigeria should have created a blockchain regulation strategy in 2021 instead of cutting ties between cryptocurrency exchange firms and local banks.

A group of Nigerian digital asset professionals took to the stage at the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023 in Abuja, to discuss the future of digital asset regulation in Nigeria.

In the panel titled The Future of Digital Assets: Regulatory Uncertainty and the Way Forward, the group discussed why implementing digital assets regulation and blockchain policy has been slow in Nigeria.

The developmental regulation created by The National Information Technology Development Agency (NITDA) is a big step toward understanding and creating a favorable environment for the blockchain and crypto industry, according to Adedeji Owonibi, CEO of Convexity. Owonibi stated that this step is what the Central Bank of Nigeria (CBN) should have taken back in 2021 instead of cutting ties between cryptocurrency exchange firms and local banks.

*The panel discussion on the Future of Digital Assets at the SIBAN Digital Assets Summit. Source: SIBAN*

Acknowledging NITDA’s strides in crafting a blockchain policy, Preye Itonyo, the deputy director of the agency’s Digital Economy Development Department, highlighted the regulatory hurdle posed by the decentralized nature of blockchain, resulting in a lack of understanding of blockchain and cryptocurrency concepts in Nigeria. He pointed out that this lack of understanding fueled the 2021 crypto-traditional finance ban.

In a recent global survey, Africa’s largest economy, Nigeria, was found to be the most cryptocurrency-aware population in the world and 90% of the Nigerian respondents expressed interest in investing in cryptocurrencies in the next year. However, there is a need for regulation in the industry to foster security while encouraging scalability.

In response to this, Itonyo stated that the already established blockchain policy is the first step Nigeria has taken towards ensuring the safety and protection of crypto investors. He went ahead to reveal that a steering committee has been set up by NITDA to facilitate the implementation strategies of the national blockchain policy. According to Itonyo, the CBN and the Nigerian Communications Commission (NCC) are members of the committee.

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Nigeria’s Web3 education efforts seek to tackle language challenges

September 7, 2023 Coin Telegraph

Coin Telegraph

The chief operating officer (COO) of Bitkova Academy, a blockchain education platform, Bello Usman Abdullahi said the language barrier is one of the current major challenges.

While Nigeria appears to have a high level of blockchain and crypto awareness, the country is still facing issues related to public education in the field. A group of local blockchain experts discussed blockchain education's challenges in Nigeria at the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023, held in Abuja, the nation’s capital.

In the panel titled “Web3 Education: Capacity Building,” the group discussed the current level of blockchain and Web3 awareness in the country and the challenges that have surfaced in the journey so far.

The chief operating officer (COO) of Bitkova Academy, a blockchain education platform, Bello Usman Abdullahi said that the language barrier is one of the current major challenges due to the complexity of blockchain technology and its jargon. Nigeria is one of the most linguistically diverse countries in the world, with over 500 languages spoken.

*The Web3 Education- Capacity Building panel session at SIBAN's Digital Assets Summit*

However, local blockchain hubs have begun educating individuals who are not familiar with blockchain technology using local Nigerian languages. Abdullahi said that it is important to help individuals who are new to blockchain technology and Web3 understand what Satoshi Nakamoto was trying to achieve with blockchain technology. This is mostly important to correct the fear and negativity created in the minds of citizens by the Central Bank of Nigeria (CBN) and the government, he said.

In February 2021, the Central Bank of Nigeria severed connections between local banks and cryptocurrency exchange firms. According to Abdullahi, this act by the government and the CBN played a role in slowing down the level of blockchain awareness in Nigeria, associating blockchain and crypto with adverse perceptions.

Nigeria has seen better days in terms of crypto interest, with Google Trends data showing the country stepped down from its previous top placing to No. 2 in the world in terms of search interest for Bitcoin (BTC).

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99% of Nigerians are crypto aware — ConsenSys report

September 4, 2023 Coin Telegraph

awareness

A survey featuring respondents from all seven continents suggests that Nigeria has the most crypto-aware population globally.

A global survey featuring respondents from 15 countries indicates that Africa’s largest economy, Nigeria, has the most cryptocurrency-aware population in the world.

ConsenSys and YouGov released the findings from the global Web3 perception survey, which sought to provide both macro and regional insights into the perception of different countries toward cryptocurrencies and the broader Web3 ecosystem.

A key takeaway from the data obtained from the qualitative survey was that two African nations rank highest for awareness of cryptocurrencies. According to the survey, 99% of Nigerians and 98% of South Africans are more knowledgeable about Web3 than people in major economies like the United Kingdom, the United States, Japan and Germany.

*Survey question and responses. Source: Consensys/YouGov Global Web3 Participation Survey.*

The survey included 15,158 individuals living in 15 countries, aged between 18 and 65. Of the Nigerian respondents, 70% said they understood the fundamental concepts of blockchain technology.

Nigeria’s knowledge of the cryptocurrency sector is mirrored by crypto ownership among its population. Of the 1,001 respondents from Nigeria, 76% either held or previously held cryptocurrencies. Bitcoin (BTC) and Ether (ETH) were the most commonly owned, while BNB (BNB) and Dogecoin (DOGE) ranked higher than the world’s largest stablecoin Tether (USDT).

90% of the Nigerian respondents expressed interest in investing in cryptocurrencies in the next year, while 65% noted that cryptocurrency offered a means to hedge against hyperinflation monetary devaluation.

Considering that the Nigerian Central Bank cut off ties between cryptocurrency exchanges and firms and local banks in Feb. 2021, 50% of respondents indicated that regulators should create laws that encourage participation while protecting investors.

Source: Consensys/YouGov Global Web3 Participation Survey.

Consensys has published data and insights relating to all 15 countries that were surveyed. 95% of United States respondents were aware of crypto, while 42% had heard of the sector but lacked a clear understanding. Only half of the American respondents indicated that they own or owned cryptocurrencies.

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Nigeria’s Patricia crypto exchange seeks to explain its token amid confusion

August 30, 2023 Coin Telegraph

Coin Telegraph

Patricia clarified that it will operate similarly to an IOU (I owe you) document, serving as a means for the exchange to acknowledge its debt to its users.

The announcement of Patricia Token (PTK) by Nigerian crypto exchange Patricia was greeted by users with scepticism and some suspicion, as they took to social media to question the motives behind the move. Now, in a response to that reaction, the crypto exchange company has released a white paper seeking to explain the intended function of the Patricia Token.

According to the released white paper, the Patricia token is not a stable coin but a debt token, issued to customers to manage users' debt. Patricia said that it will operate similarly to an IOU (I owe you) document, serving as a means for the exchange to acknowledge its debt to its users, and promising to pay holders 1 USDT for each Patricia Token in the future.

In April 2023, Nigerian crypto exchange Patricia halted withdrawals and deposits due to a breach. However, customers who have not been able to access their funds for months due to the breach were not mollified by the announcements. They raised questions, including how the token was backed and why Patricia converted them without customer consent. A major question is when they will be able to access their funds. The PTK whitepaper does not offer a specific answer to this question.

Understanding Patricia Token - Our Commitment to You

We remain committed to our promise of transparency, our dedication to resolve all pending issues and also innovate better solutions for you. pic.twitter.com/Cq8Rk3mReC
— Patricia (@PatriciaSwitch) August 24, 2023

According to the paper, users whose BTC and naira balances were changed into PTK have the option to redeem it for USDT, which can subsequently be exchanged for other cryptocurrencies or fiat like naira. All conversions will be determined by the asset's US dollar value as of April 29, 2023. However, the new Patricia Plus App launch will provide customers who suffered losses in BTC and naira due to the breach access to PTK tokens that will serve as their debt tokens.

In 2016, Bitfinex introduced BFX after a hack resulted in the loss of 119,756 bitcoins (equivalent to $72 million back then). Similarly to Patricia's approach, Bitfinex issued a debt token named BFX to compensate customers affected by the hack, and eventually repurchased these tokens from customers.

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Nigeria calls on global experts for national AI strategy co-creation

August 30, 2023 Coin Telegraph

Coin Telegraph

The action will impact how the government formulates inventive technological solutions for critical national challenges.

Nigeria is extending an invitation to scientists of Nigerian heritage, as well as globally renowned experts who have worked within the Nigerian market, to collaborate in the formulation of its National Artificial Intelligence (AI) Strategy.

According to Bosun Tijani, the Minister of Communications, Innovation and Digital Economy, who made the announcement on X (formerly Twitter), the National Information Technology Development Agency (NITDA) has initiated the development of a National AI Strategy.

This action will impact the way the government formulates inventive technological solutions for its critical national challenges. As a result, the government is broadening its co-creation strategy by assembling a selection of leading AI researchers with Nigerian heritage from around the world.

The Nigerian government has recognized that AI has developed into a versatile technology reshaping production and services, and holding immense potential for influencing societal progress and economic expansion.

We’re curating a list of the top researchers of Nigerian descent from all over the world to join us in co-creating a National AI Strategy. The strategy will help shape our approach to building innovative tech solutions to our most pressing national problems…1/2 pic.twitter.com/6JpPPps3oy
— Dr. 'Bosun Tijani (@bosuntijani) August 28, 2023

According to a study, artificial Intelligence could contribute a substantial $15.7 trillion to the global economy by 2030, with approximately $3 trillion attributed to enhanced productivity and $9.1 trillion arising from novel goods and services.

According to a white paper titled ‘Co-creating a National Artificial Intelligence Strategy for Nigeria’ referenced in the minister’s post, a sophisticated method was used to pinpoint accomplished AI researchers with Nigerian roots, using global AI publication data and advanced machine learning models.

Similar to the "h-index," a distinctive research Index was created to locate influential AI researchers of Nigerian heritage. As the preliminary research phase concludes, the Nigerian Government seeks public involvement, acknowledging the potential for errors and aiming to tap into collective knowledge and insights.

Reports from local media indicate that Kashifu Inuwa, the Director-General of NITDA, has revealed intentions to establish communities of AI developers nationwide, with the goal of influencing the country's technological future. He mentioned that their initiative will commence in three states in 2023, followed by strategic planning for its extension to additional states and eventually encompassing local government areas.

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Nigerian crypto exchange’s token launch draws scrutiny

August 24, 2023 Coin Telegraph

Coin Telegraph

This development follows the company's previous disclosure of a security breach resulting in fund losses in May 2023.

Patricia, a Nigerian cryptocurrency exchange, has revealed the introduction of its own native token named Patricia token (PTK). However, this launch has generated more doubt than applause within the local cryptocurrency community.

Native tokens are digital assets that are specific to a particular blockchain platform or cryptocurrency exchange. They are created and issued directly by the platform or exchange itself. Examples of native tokens include Binance Coin (BNB) on the Binance exchange, Ether (ETH) on the Ethereum network, and SOL on the Solana blockchain.

In the official communication on X (formerly Twitter), the company stated its intention to transition exchange operations to the Patricia Plus app. The newly introduced native token, which the company asserts is a stablecoin with a 1:1 peg to the dollar (1PTK = $1), is expected to take the place of customers' existing bitcoin (BTC) and naira balances.

The major issue here is

If u can afford to give people(converting their balance) a stable coin backed by Usd

Then Why not just give them their tokens back ? https://t.co/GKgBQdi4Yg
— Solomon_Gift (@Crypto__hub) August 19, 2023

This development follows the company's previous disclosure of a security breach resulting in fund losses in May 2023. Despite asserting that customer funds remained unaffected, platform users have faced ongoing difficulties in accessing their funds since April.

The response to Patricia's announcement has led to speculation around fears of a potential exit scam, which could leave customers who have funds stuck on the platform in a precarious situation.

Highlighted in posts by members of the local crypto community, there are a few indicators of concern surrounding Patricia's introduction of PTK. The token is absent from major cryptocurrency aggregators like CoinMarketCap and Coingecko. These platforms offer comprehensive details about tokens, including their real value, issued quantity, contract address and launch blockchain.

PTK does not exist on widely adopted blockchains used by exchanges for launching their native tokens. To illustrate, PayPal's newly introduced stablecoin, PYUSD, is accessible on the Ethereum blockchain, the platform on which it was introduced.

In its statement on X, Patricia disclosed its plan to convert outstanding balances to PTK without obtaining customer consent. This unilateral action has raised concerns, as many worry about their ability to exchange the token for fiat currency or alternate cryptocurrencies like bitcoin.

If customers initiate withdrawals in large numbers, a surge of withdrawals could lead to PTK losing its peg, potentially leaving those who couldn't withdraw stranded.

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