The Nigerian Export Processing Zones Authority (NEPZA) has hinted on its plans to create free zones space to blockchain tech and crypto currency operations in the country.
The NEPZA’s Managing Director, Prof. Adesoji Adesugba, made this disclosure when he hosted delegates of two blockchain companies on visit to his office to make submissions on their proposals for blockchain operations in Nigerian free zones areas.
A statement by the NEPZA’s Head, Corporate Communications, Martins Odeh, indicated that the NEPZA’s boss said that the consideration followed requests from local and international players.
Adesugba explained that the authority’s management received multiple presentations on the need for crypto exchanges and hubs within the nation’s special economic zones to tap into the multi-billion dollar revenue opportunities which the country is presently not exploring.
He said: “I have also been approached at various international gatherings and events on why Nigeria, in spite her fiscal pressure, is comfortable losing so much in capital gains tax to neighbouring nations.
“We are aware of various reports and studies that indeed confirm operations of blockchain technology in many special economic zones all over the world.
“Our management is, therefore, considering inaugurating policy consultation with sister agencies on the need for a regulating framework on this emerging field.
“It is worrisome that Nigeria is said to be losing billions of dollars annually in capital gains tax paid to other nations even though the crypto transactions took place in Nigeria,’’ the NEPZA boss said.
He further explained that statistics on crypto operations were putting up more pressure on the agency to also open the free zones space for their operations.
According to him, Nigeria is currently the number one in terms of people searching for “Bitcoin” and “Crypto” keywords on Google, with more than 6.3 per cent of the entire population owning at least one type of crypto currency.
The NEPZA boss clarified: “In the Chainalysis 2021 Global Crypto Adoption Index, Nigeria is ranked sixth out of the top 20 countries in terms of crypto currency adoption.
“It is important for us to develop a robust blockchain policy in line with current international trends. And we hope to be able to consider interested organisations for capacity and development of blockchain tech within the free zones.
“In policy formulation and implementation, we shall definitely invite all the stakeholders including large crypto exchanges such as Binance, Coinbase, Crypto.com, and other young local operators”, he added.
Adesugba said that this would bring access to technology and expand the capacity of the sector to employ estimated 250, 000 youths, stressing that “leaving this vast field unregulated appears to constitute huge economic loss to the nation.
The NEPZA’s boss assured that the management would come up with a draft perspective after due consultations.
Earlier, one of the firms, the Finlease, in its submission requested for NEPZA’s approval for the establishment of Lekki International Financial Centre at the Lekki Free Zone (LIFCFZ).\
The firm’s Managing Director, Dr. Sunday Sijuade, said that the planned Lekki International Financial Centre would cover offshore crypto zone to cater for crypto currencies.
