Legal and Regulatory Standards for the Adoption of Blockchain Technology in the Nigerian Capital Market

The capital market is instrumental to the economic development process of African states. A key enabler of such development is the use of emerging technologies such as blockchain technology and its transformative role in driving an efficient market. This research investigates the potential adoption of blockchain technology within the Nigerian capital market and assesses whether the Nigerian regulatory framework possesses the necessary standards for blockchain technology adoption. Drawing from Douglass North's institutional economics theory, the study underscores the importance of strong institutions, including laws and regulations, in fostering market development.

The research is motivated by Nigeria's current push to adopt blockchain technology in the public sector, as outlined in its National Blockchain Policy to drive efficiency. This thesis argues that for blockchain technology to thrive in the Nigerian capital market, the regulatory framework needs to possess the requisite regulatory standards to realise the unique attributes of the technology and to address any implications on the market. This thesis draws on the experience of the United Kingdom’s regulatory framework and its approach to the deployment of blockchain in its financial market as a yardstick to test the adequacy of the regulatory framework of the Nigerian capital market. The findings from the research reveal that Nigeria's current regulatory framework lacks the necessary standards to tackle the challenges and implications of blockchain technology implementation.

The work submits that the Nigerian capital market should not race towards the adoption of the technology due to the ailing state of its regulatory framework. This submission stems from the position that an adoption of blockchain technology would not cure inherent defects in its regulatory framework. The research concludes by offering recommendations for Nigerian policymakers to establish the necessary legal and regulatory standards to facilitate the successful integration of blockchain technology within the country's financial market.