Cody McGrath 
The planned alliance between Nigeria and Binance intends to create a digital city that welcomes cryptocurrency, much like the virtual free zone in Dubai.
The government of Nigeria and the cryptocurrency exchange Binance met informally in order to discuss the possibility of creating a special economic zone to support companies involved in the blockchain and cryptocurrency industries.
The proposed digital city referred to as a “Virtual Free Zone,” has been discussed in preliminary discussions with Binance and the technology infrastructure firm Talent City, according to a Sept. 2 post from the Nigeria Export Processing Zones Authority (NEPZA).
The proposed zone, according to NEPZA managing director Adesoji Adesugba, will be a first in West Africa and function similarly to Dubai’s virtual zones, which are intended to offer crypto firms laws, regulations, and tax incentives that are beneficial to the industry.
According to Triple A, Nigeria has one of the highest rates of cryptocurrency adoption globally, with over 22 million owners.
According to Adesugba, the zone will “widen employment prospects” for Nigerian residents and contribute to the development of Nigeria’s digital economy.
“Our goal is to engender a flourishing virtual free zone to take advantage of a near trillion dollar virtual economy in blockchains and digital economy.”
The early intentions were addressed on Friday in a meeting held in Dubai between Adesugba, Nadeem Ladki, the executive director of Binance, Luqman Edu, the CEO of Talent City, and Sikiru Lawal, the director of NEPZA.
In order to further encourage the adoption of cryptocurrencies in the West African region, Adesugba noted that the action would be a component of Nigeria’s goal for economic development.
“We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority, the directive of the Honorable Minister, and the economic development agenda of President Muhammadu Buhari,” he said.
The popularity of cryptocurrencies has risen steadily over the past few years in Africa, driven by a deficient financial system, unpredictable government policies, and inflation.
According to a new CoinGecko study, Nigerians are the most obsessed with cryptocurrencies, having searched for the terms “cryptocurrency” and “purchase crypto” more frequently than the citizens of any of the other 14 nations surveyed.
Additionally, Nigeria introduced eNaira in October 2021, the country’s first central bank digital currency (CBDC). Currently in its second phase, eNaira aims to promote financial inclusion by enlisting Nigeria’s unbanked population.