Nigeria And Binance To Build A “Virtual Free Zone”

The Nigerian government met with crypto exchange Binance to discuss the possibility of establishing a special economic zone to support crypto and blockchain-related companies.

According to a September 2 post by the Nigeria Export Processing Zones Authority (NEPZA), the authority has held preliminary discussions with Binance and technology infrastructure firm Talent City to discuss the suggested digital city, dubbed a "Virtual Free Zone."

The proposed zone, according to NEPZA managing director Adesoji Adesugba, will be a first in West Africa and will function similarly to Dubai's virtual zones, which are intended to do is provide crypto-friendly laws, rules and regs, and tax breaks for crypto businesses.

According to Triple-A, the country has one of the world's highest numbers of cryptocurrency adoption, with over 22 million crypto holders.

Adesugba stated that the zone would aid in the development of Nigeria's digital economy and "enlarge employment opportunities" for Nigerians. "Our goal is to create a thriving virtual free zone to capitalize on a nearly trillion-dollar digital marketplace in blockchains and digital economy."‍

The preliminary plans were discussed at a meeting in Dubai on Friday between Adesugba, Binance Executive Director Nadeem Ladki, Talent City CEO Luqman Edu, and NEPZA director Sikiru Lawal.

Adesugba said that the move would indeed be part of the country’s economic growth agenda to drive crypto adoption in the West African region even further.

‍"We seek to break new ground to broaden economic opportunities for our citizens in accordance with the Authority's objective, the Honorable Minister's directive, and President Muhammadu Buhari's economic improvement agenda," he said.

Crypto adoption in Africa has increased in recent years, fueled by an insufficient financial system, unstable government policies, and inflation.

According to a recent CoinGecko survey, Nigerians are the most crypto-obsessed people in the world, having searched the terms "cryptocurrency" and "buy crypto" more than any of the other 14 surveyed countries.

The country also launched the eNaira in October 2021, the country's first central bank digital currency (CBDC). It is now in its second phase and aims to drive financial inclusion by recruiting and selecting Nigeria's unbanked citizens.