Can Blockchain Technology Enhance Nigeria’s Aviation Industry?

November 25, 2024

The Nigeria Civil Aviation Authority (NCAA) has launched a groundbreaking blockchain-powered platform designed to assist stranded or dissatisfied passengers and minimize operational risks for airlines. This initiative, a collaboration with Breezetech Technologies, was unveiled by NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu.

According to Achimugu, the solution represents a convergence of technology, insurance, operators, and regulatory bodies. The goal is to deliver immediate relief to passengers while taking into account the needs of the airlines. Breezetech’s blockchain portal was selected because of its practicality and robust credentials, making it the most feasible model available.

This move by the NCAA is part of a larger trend where Nigerian government agencies are increasingly adopting blockchain technology to solve societal challenges. Notably, in 2021, the Central Bank of Nigeria (CBN) introduced Africa’s first Central Bank Digital Currency (CBDC), known as the eNaira, which operates on a private blockchain based on Hyperledger Fabric. The National Information Technology Development Agency (NITDA) is also working on the ‘Nigerium’ blockchain to bolster national security. Further, the Nigerian stock exchange is set to launch a blockchain-enabled trading platform to attract younger investors. In 2024, the Nigerian Inter-Bank Settlement Scheme (NIBSS) embraced Zone, a blockchain-based POS terminal system, to enhance transaction reliability and security.

Blockchain technology is seen as transformative across various sectors, including finance, healthcare, transportation, and supply chain management. Its transparency, reliability, efficiency, cost-saving capabilities, and improved user experiences make it particularly appealing. The Nigerian government views blockchain as a key driver of innovation, enhanced public services, job creation, and economic growth.

The Nigeria Civil Aviation Authority, established under the Civil Aviation Act of 2022, is the sole regulator of civil aviation in Nigeria. It oversees aviation safety, airport operations, airspace management, meteorological services, and the economic facets of the industry, free from political influence.

The NCAA’s adoption of the blockchain-powered platform signals a significant step forward in using advanced technology to boost passenger satisfaction and operational efficiency within Nigeria’s aviation sector. This development underscores the potential of blockchain to address real-world issues, positioning Nigeria as a leader in innovative solutions for the aviation industry.

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