NIGERIA: Top 4 Ways that Blockchain Tech Can Improve Efficiency in Government Business

Ever since the dawn of this 21st century, digital technologies have evolved rapidly, delivering easy solutions to complex problems around the globe. For instance, think about how electronic mail (email) services have simplified communication for personal, business and corporate needs. Hardly does anyone need to use a post office these days to send letters or other communication, unless if they need to send a parcel. 

Similarly, we have also seen other digital technology solutions like social media, online media, digital marketing tools, human resources management tools, and others, evolve since the past 20 years, solving complex problems with easy-to-use solutions such as YouTube, Twitter, SAP, Microsoft Office, Pinterest, Canva, Zoho, Mailchimp, and many more. 

Nowadays, other emerging digital technologies like blockchain technology have reshaped global financial markets since Bitcoin was launched in 2009, and is taking aim at other sectors such as supply chain, digital business, international trade/settlements, etc, where the technology's impeccable transparency is much desired to solve perennial problems caused by corruption and inefficiency in the existing ways of doing things. 

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network, according to American international technology company, IBM. 

I will spare you most of the other exciting details about how a blockchain works, but you can find them here if you'd like to explore. Just understand this lose explanation of mine: Blockchain enables immutable, real-time data management over a transparent network where everyone can see every data that is entered in the network, and every data entry must be validated by a rigid network protocol. Cool right? With blockchain, no data can be kept secret or changed without everyone on the network seeing it. The twin power-features (transparency and immutability) have therefore set blockchain apart as a much desired technology for building innovative and next-gen solutions that can solve complex perennial problems. 

In my opinion, leaders of countries such as Nigeria where the twin problems of corruption and inefficiency have been perennial, need to start taking a critical look at how they can deploy the use of blockchain tech in carrying out government business with greater efficiency and less corruption. 

In this first part of a two-part article on the subject, I would like to share two out of four ways that I believe the Nigerian government (and indeed other governments of African nations) can create and deploy blockchain tools to solve problems in four specific sectors. And this is based on my knowledge and experience with blockchain technology since 2018.

Managing the Civil Service

Public service in Nigeria is riddled with a lot of corruption and inefficiency. The civil service is a house of data, and the poor methods of managing data in the Service is responsible for much of the corruption, waste and inefficiency that often characterizes that system. 

However, by deploying a dedicated NFT smart contract, federal, state or local governments can issue unique NFTs to every verified employee in their Service. NFTs are unique because of the unique and immutable metadata each one contains when minted. The metadata of these NFTs should include the employee's (holder's) name, signature, thumbprint, eye ball scan, photograph, employee number, date of birth, and the date of employment. 

So, if a worker leaves the employment of the Service or retires, the NFT must be burnt in order to trigger commencement of severance payments and further entitlements to the holder. Specifically, that burning mechanism could be programmed in such a way that it is required to trigger the creation of a new NFT with which the holder may now access their severance payments and any further retirement entitlements from designated banks or other offices. 

In the case of someone getting sacked from the Service, the NFT burning mechanism will also be required to trigger the creation of a new NFT which will be their termination letter. And in the case of someone who voluntarily resigns from the Service, the burning mechanism will trigger the creation of a new NFT that will be used to access any benefits that are appropriate. 

Similarly, the NFT can be used to manage worker's efficiency in the following ways: The NFT can be linked with a blockchain oracle and stored in a chip on the employee's ID cards. These Oracles obtain real-world data and feed same to the blockchain. This way, when employees clock-in using either their thumb prints or eye ball scan, the Oracle picks the data and cross-matches same with the metadata found in all the employee NFTs in the blockchain smart contract. This way, employee attendance at work can be recorded with certain accuracy. 

And because it is recorded, certain management control protocols can easily be implemented, for instance, employee NFTs can be programmed to auto-burn or suspend, if it's metadata has not been used to clock in or out for three (3) consecutive days (or as the case may be). This will help to control absenteeism from work, and also to effect disciplinary measures that will be fair and with less need for human involvement in the disciplinary process. 

Most importantly, holders of the NFTs will accrue certain points daily or hourly (depending on daily or hourly pay is adopted) which will be used to auto-generate their payslip NFT at the end of the month. This payslip NFT will contain the salary amount due to the holder for each month, and will be used by banks to effect salary payments. 

Revenue Collection (Ports And Taxes)

One of the most important use-cases of blockchain tech is in financial management. Here, revenue collection is an important aspect of government business and a national security issue. Two important areas I want to look at here are port duties and revenue tax collection, which constitute the largest sources of government revenue for most countries of the world. 

The use of blockchain technology can eliminate corruption and over/under-taxation, while also increasing efficiency in tax collection and remittance—and these will result in increased revenue generation for the government. 

A private blockchain network solution can be created and used by government for the collection of duties and tax revenues. This private blockchain can be built in such a manner that makes eNaira its native currency for carrying out transactions. 

This way, people can easily pay duties and taxes directly to the government, and get NFTs minted for them in return once their payment is confirmed on-chain. So, this proposed private blockchain should also have NFT capability too. 

This NFT will contain metadata including name of the payee, BVN, payment office, TIN, CAC number (for companies), purpose of payment, NIN (for individuals), and other necessary information regarding the payment. 

This way, all tax remittances to the government can be easily trackable at all times. There can also be a website where payment receipts can easily be generated by only NFT holders, thereby reducing waste of time and money on issuing physical receipts at ports or tax offices. This will improve the overall efficiency of Nigerian Ports Authority, Nigeria Customs Service, and the Federal Inland Revenue Service, since it will give their employees more time to focus on other essentials such as developing policy enforcement measures and management.

To be continued... 

Paul Anunaso is a writer, digital business enthusiast, and engineer based in Lagos, Nigeria. He is the editor of The Paul Anunaso Blog, and can be reached at thepaulanunasoblog@gmail.com