Abuja (Nigeria): In a bold move to combat Nigeria’s currency devaluation, a policy think tank, the Public Policy Reform Group is advocating the introduction of the Digital Broadcast Legal Tender Act (DBLTA). The legislative instrument seeks to build a legally recognized digital currency framework that will integrates advanced financial technology into Nigeria’s monetary system with the potential to stabilize the nation’s currency as well as boost its economic resiliency.
The group emphasized during a news briefing in Abuja that the proposed law will encourage the use of digital broadcast currency in local transactions by reducing reliance on unstable foreign exchange markets. The DBLTA is expected to improve financial inclusion and boost the efficiency of financial transactions across the country by harnessing blockchain technology and digital payment systems.
“The purpose of the Digital Broadcast Legal Tender Act is to improve financial inclusion, protect the value of Nigerian currency, and lessen the impact of devaluation,” stated Jonah Ubanmhen, Executive Director of the Public Policy Reform Group, in a press release following the group’s Wednesday meeting in Abuja with representatives from various interest groups, including legal scholars, financial technology experts, and economic policy specialist.
He also mentioned that, “the initiative will help mitigate the impact of inflationary pressures on everyday transactions.”
According to the group, rising inflation and declining purchasing power have severely lowered the living standards of many Nigerians, which has stoked the need for a law to update and improve the country’s monetary system. Therefore, it is expected that the implementation of a Digital Broadcast Legal Tender Act will offer a much-needed safeguard against these financial challenges.
Economists have praised the endeavor for being a timely intervention. According to financial policy expert Dr. Adebayo Ogundipe, the move is “a necessary step towards economic modernisation,” but he warned that its success will depend on clear regulation and government support.
However, it is expected that the proposed Act will necessitate cooperation with the Central Bank of Nigeria (CBN), financial institutions, and technology businesses in order to guarantee the money supply and compliance with security regulations.
The Act’s implementation and long-term effects on Nigeria’s financial stability will be the subject of additional talks as the issues surrounding it heat up.
