$300bn blockchain opportunity exists in unbanked population – NITDA

Africa’s unbanked population, which makes up 57 per cent of its citizens, presents a $300bn economic opportunity through blockchain technology.

The Director-General of the National Information Technology Development Agency, Kashifu Abdullahi, made this assertion at the Africa Tech Alliance Forum in Lagos.

The forum, which was held recently, underscored the need to drive the adoption of transformative technologies, with blockchain identified as a cornerstone for economic empowerment.

In his keynote address, titled “Blockchain Technology and AI: Positioning Africa for the Future,” he highlighted the region’s potential to become a global leader in digital innovation.

With mobile penetration at about 80 per cent and a rapidly growing youth population, Africa, he noted, is fertile ground for digital transformation.

The DG said that blockchain and AI offer unparalleled opportunities to propel Africa into the future as a leader in the global digital economy.

“Both blockchain and artificial intelligence are powerful technologies that offer Africa unprecedented opportunities. By strategically integrating these technologies, we can propel Africa forward as a dynamic leader in the global digital economy,” he said.

Abdullahi, who was represented at the event by the Head of Startup Innovations and IT Solutions, NITDA, South West Zone, Mrs. Rita Shoremi, outlined the potential of blockchain to address challenges in financial inclusion, governance, and property rights across the continent.

“With over 57 per cent of Africans unbanked, blockchain can extend financial services to underserved regions, adding an estimated $300bn to Africa’s GDP by 2025,” the NITDA chief stated.

According to a World Bank 2022 report, “Africa stands at a unique juncture. Our continent has seen remarkable digital growth, with mobile phone penetration reaching 80 per cent across sub-Saharan Africa.”

“Africa is also home to one of the world’s fastest-growing youth populations, over 60 per cent of whom are under the age of 25 by a UN Population Data of 2022.

“These dynamics offer fertile ground for digital transformation, and emerging technologies like blockchain and AI have the potential to redefine key sectors that fuel Africa’s economy,” Abdullahi stated.

To fully capitalise on blockchain and AI, Abdullahi emphasised the need for supportive policies, strategic partnerships, and youth empowerment.

He noted that NITDA’s eight-pillar strategy aligns with Nigeria’s goals for digital literacy, infrastructure access, and global research collaboration, with a goal of achieving 70 per cent digital literacy by 2027.