It is difficult to understand how the Nigerian policymakers are addressing the misgivings about Nigeria’s crypto policy because the Central  Bank of Nigeria(CBN), has continued to undermine the duties of SEC Nigeria, the nation’s capital market regulator. 

Not only is the West African country struggling to establish a clear-cut regulatory framework befitting her socio-economic demands, but it is also finding it difficult to disentangle itself from the morass of confusion caused by the 2021 CBN circular banning all bank-assisted crypto transactions. 

Nigeria’s current regulatory challenges indubitably began in 2021 when the CBN under the embattled former governor Godwin Emefiele issued a circular prohibiting DMBs from further engaging in crypto-related services such as payment remittance. Before the ban, most banks in Nigeria were directly involved in crypto transactions. 

Responding to an FBI intelligence report about Nigerian fraudsters siphoning off millions of dollars in weekly cryptocurrency thefts from the US, the Central Bank of Nigeria (CBN) issued a sweeping directive in 2022: all crypto transactions between domestic money banks (DMBs) and crypto exchanges were halted. This two-year ban, while intended to curb illicit activity, ultimately sowed widespread confusion and regulatory chaos.

The effect of the CBN prohibition of crypto transactions in the banking sector is the lack of a clear regulatory oversight, the consequence of which remains to be seen in the myth surrounding the CBN prohibition. 

To this day, there is still a misreporting of the 2021 CBN ban in several media outlets due to the fact that the CBN directive created a wrong impression of a ban in the real sense of a legal prohibition backed by law. Meanwhile, the CBN circular was not a law and could never have stood in its place because a circular by its nature does not carry the force of law. 

Consequently, the misunderstanding resulting from the CBN prohibition occasioned a series of injustices meted out against crypto businesses in Nigeria, many of which had their Nigerian bank accounts frozen on the orders of the CBN. 

However, it would take a Federal High Court sitting in Abuja, the nation’s capital, to undo those injustices in the intervening period. The Reuters reported the story on the 26th of October, 2021 under the following title: NIGERIAN COURT LIFTS BANK FREEZE ON FIRMS ACCUSED OF BUYING CRYPTO. 

The court’s presiding judge Justice Taiwo O. Taiwo ruled that CRYPTOCURRENCY TRADING IS NOT ILLEGAL IN NIGERIA and  that the Central Bank of Nigeria circular, referenced as BSD/DIR/PUB/LAB/014/001 of February 5, 2021, is not a law.

The Abuja High Court ruling meant that the CBN by its circular is not the constituted authority that is empowered to declare crypto trading as illegal in the country.

Blaming Nigeria’s lack of regulatory clarity on the failure of the 2021 CBN directive to DMBs is part of a larger effort to condemn the CBN’s oversight and its refusal to let the capital market regulator, the SEC Nigeria,to assume its legal duties.  

As it stands today, CBN has completely assumed control over the crypto industry, pushing a not-so-clear policy on cryptocurrency regulation and hiding behind a load of technical jargon. Could one possibly imagine the Federal Reserves playing the SEC or the CFTC in the United States? 

The extent of the CBN’s rashness lies in the fact that it has arrogated to itself the power to oversee the crypto industry, rendering the SEC practically useless. The result of this infraction is that most often than not its policies on crypto, which are mostly bank directives, are erroneously interpreted as the nation’s broader crypto policy. 

A recent example of how CBN circulars are mistaken for Nigeria’s crypto laws is the newly issued circular directing all DMBs to engage directly with Virtual Asset Providers(VASPs) after two years of brutal crackdown. 

Reading between the lines, one is compelled to think that the CBN has now finally lifted the “ban on cryptocurrency” without acknowledging the fact that the new circular is a fair attempt to allow the banking sector to engage in cryptocurrency transactions.

The new circular is a carrot-and-stick approach devised by the CBN. In one breath, it allows Virtual Assets Providers(VASPs)to operate within the country, and in another breadth, it prohibits the DMBs from dealing in cryptocurrencies on “their own accounts”. 

Following the release of the latest CBN circular, the rumor mill has gone into overdrive with the unfounded claim that the CBN has “lifted the ban on cryptocurrency”. The news is now everywhere on the internet but does that make it true and accurate?

In a recent interview with Grapevine’s CEO, Luka Yancopoulos, the importance of standardizing data for efficient supply chain management and the role of AI in this process were explored. Yancopoulos shed light on the challenges faced by companies in implementing data and AI solutions for supply chain visibility and how Grapevine addresses these issues.

Standardizing data for supply chain efficiency

Standardizing data is a crucial step in enhancing supply chain efficiency, and Luka Yancopoulos emphasized its significance. He compared the process to assembling a puzzle where the pieces come from different sources and have been mixed up. In the healthcare supply chain, AI is used to build a comprehensive picture, optimize supply options, reduce costs, and predict shortages. However, the data needed for this task often comes from various legacy systems and businesses, making it challenging to integrate and use effectively. Legacy companies, like McKesson, which own this data, do not always make it readily accessible. Therefore, standardizing data is essential to create a coherent and actionable view of the supply chain.

Grapevine’s role in data standardization

Yancopoulos highlighted Grapevine’s role in addressing these challenges. Grapevine collaborates with legacy supply chain players, including McKesson, Medline, and Schein, to consolidate data from disparate sources. The company connects to these antiquated data sharing systems and standardizes the information, enabling it to be processed at scale. By partnering with these legacy businesses, Grapevine aims to bridge the gap between fragmented data sources and provide a unified and standardized view of the supply chain.

Integration and quality data inputs

Discussing how Grapevine ensures quality data inputs, Yancopoulos acknowledged the outdated technology prevalent in the industry. He explained that the foundation of healthcare supply chain integration dates back to the 60s and 90s and has remained largely unchanged. Despite these challenges, Grapevine has integrated these outdated systems with modern AI-powered processing, forecasting, and shopping experiences. The company synchronizes information from various suppliers, creating a single shopping center for users. This approach allows clinicians and shoppers to access all their trusted suppliers effortlessly. Grapevine then compares prices in real-time, ensuring users obtain the best prices without manual effort.

Benefits of Grapevine for customers

Yancopoulos shared the tangible benefits that Grapevine offers to its customers. Medical practices using Grapevine typically save more than 50% on supply costs. These savings are achieved without additional effort, as Grapevine’s platform streamlines supply ordering and cost comparison. Clinicians and shoppers are given back the time they previously spent on tasks like solving backorders and comparing cost-saving opportunities. This newfound efficiency allows healthcare professionals to focus on delivering higher-quality patient care.

Real-time visibility and insights

Real-time visibility and insights enabled by AI are invaluable for supply chain agility and efficiency. Grapevine provides users with a comprehensive view of their supply chain, including supplier performance, logistics delays, and demand signals. The platform highlights savings opportunities and suggests alternative sources for back-ordered items, ensuring a consistent supply of essential medical products. By leveraging AI, Grapevine offers users visibility into delivery timelines and constructs estimated arrival times based on suppliers’ past performance. It also consolidates all backorders from various suppliers into a single window, simplifying the process of addressing delays and finding alternative solutions.

Smooth implementation and change management

Yancopoulos outlined the ease of implementing Grapevine’s platform. Customers can sign up for free on the Grapevine website, link their suppliers, and access their products and prices in a centralized shopping center. The process is streamlined, allowing users to transition effortlessly to the platform. While integrated suppliers can complete data collection and deployment in less than five business days, smaller specialty suppliers may take two to three weeks. Grapevine prioritizes a smooth onboarding process for its customers to ensure a seamless transition.

Data governance, security, and compliance

Security and privacy are paramount when handling supply chain data, given its sensitivity. Yancopoulos emphasized Grapevine’s commitment to data governance, security, and compliance. The company employs strict access controls, implementing role-based access control (RBAC) to restrict data access based on users’ roles and responsibilities. Data is encrypted both in transit and at rest, with proprietary encryption protocols ensuring its protection. Additional security measures, such as firewalls and intrusion detection systems, safeguard against cyber threats. Grapevine continuously monitors its systems for potential security threats and has an incident response plan in place to address new challenges and enhance defense mechanisms.

The future of supply chain visibility

Yancopoulos discussed the future of supply chain visibility leveraging AI and data. He emphasized that innovation should focus on making life easier, better, and more cost-effective for customers. Grapevine’s goal is to create a healthcare industry where supply orders are effortlessly managed, backorders are eliminated through predictive analytics, and costs are reduced significantly. This vision involves seamlessly integrating cutting-edge technologies like IoT, blockchain, predictive analytics, and more. Ultimately, the aim is to provide customers with the highest level of convenience, efficiency, and savings.

Yancopoulos offered advice to supply chain leaders looking to prepare for a future where AI and advanced analytics become ubiquitous. He emphasized the importance of increasing information sharing and adopting new technology to drive the industry forward. By embracing innovation and collaborating with technology providers like Grapevine, supply chain professionals can enhance efficiency and deliver better outcomes for their organizations.