FINANCIAL TECHNOLOGY CONTRACTS AND TRANSACTIONS: ENFORCEABILITY OF SMART CONTRACT IN NIGERIA

Abstract

Technology is influencing every facet of modern society at an unprecedented pace. In particular, electronic legal tools are replacing conventional methods of resolving practical issues in commerce and law. The emergence of blockchain technology and smart contracts is an example of such innovation. Smart contracts are coded agreements that frequently use blockchain technology and automatically enforce and carry out the provisions of a contract when predetermined conditions are satisfied. This article uses the doctrinal methodology to analyse the enforceability of smart contracts in Nigeria by consulting primary sources of law such as the Central Bank of Nigeria Act 2007, Nigerian Data Protection Act 2023, Evidence Act 2011 (as amended 2023) and secondary sources of law that were subject to content analysis. This article reveals that although, smart contracts and blockchain technology are novel in Nigerian jurisprudence, and as such, there is no legislation specifically provided to cover both subject matters, smart contracts are enforceable once it satisfies the fundamental principles of offer, acceptance, consideration, intention to create legal relations, and capacity to contract which are governed by traditional contract law. It recommends that the government and regulatory bodies establish clear regulations for the enforcement of smart contracts. In conclusion,the commercial sector is revolutionised by blockchain technology and smart contracts, parties who implement smart contracts derive substantial advantages over conventional contracts. Although parties are eager to capitalise on these benefits, they must exercise caution regarding the intricacies of smart contracts.