Director-General of the National Information Technology Development Agency (NITDA), Inuwa Kashif, has announced that industry experts, government officials and experts will collaborate to fully explore the potential of blockchain technology in asset management and economic growth in Nigeria. He encouraged them to take action. Speaking at the Tokenization Economy Conference and Exhibition, the event focused on the theme “Tokenization Economy 2024: Tokenization of Real-World Assets” and was hosted by CyberChain in collaboration with Bayes University and NITDA.
Blockchain as a catalyst for economic transformation
The conference served as a platform to discuss how blockchain can transform various sectors by facilitating the tokenization of physical and digital assets. Inuwa emphasized that the integration of this technology could revolutionize asset management, exchange and security, which could stimulate economic development. He highlighted the role of blockchain as a key enabler of Nigeria’s GDP growth, with particular focus on the areas of digital asset finance, capital markets, real estate, commodities and fractional ownership.
Representative Inuwa is Engr. Sarith Kaka, Director of E-Government and Digital Economy Development at NITDA, emphasized the importance of converting traditional assets into digital tokens recorded on blockchain networks. Doing so allows assets such as real estate and securities to be tokenized and represented digitally, increasing both liquidity and accessibility. According to Inuwa, this transformation will allow assets to be traded, sold and held in digital format, making the process more efficient and secure.
Benefits of tokenizing physical and digital assets
Inuwa explained that tokenization has several benefits, especially in areas where the process is often slow and inefficient, such as real estate. Traditional methods of transferring real estate ownership and maintaining accurate records are often cumbersome and error-prone. He pointed out that tokenization will automate these processes, increase transparency, and improve liquidity by lowering barriers to investment. Ease of automation and the potential for easier access to investments make tokenization an attractive prospect for real estate lending.
Inuwa further praised Lagos State’s efforts to tokenize real estate, seeing it as a model for other states in Nigeria to follow. He said the same concept could be applied to other sectors such as agriculture, oil and gas, fixed income and derivatives, where tokenization could play a key role in wealth creation and economic growth. suggested. This move will not only simplify investing in these areas, but also enhance transparency and security through blockchain technology.
Positioning Nigeria as a leader in the tokenized economy
Inuwa emphasized the importance of positioning Nigeria as a frontrunner in Africa’s tokenized economy. He said realizing this vision requires establishing a clear regulatory framework to increase investor confidence and developing a robust infrastructure to support the growing tokenized economy. .
He also explained NIITDA’s continued efforts to promote blockchain adoption in various sectors in Nigeria. Since the launch of the National Blockchain Policy and the establishment of its steering committee, NITDA has been actively working with the blockchain ecosystem to facilitate the integration of this technology into the country’s financial landscape. Inuwa said the tokenization of real-world assets could be an important tool for Nigeria to unlock economic potential, create wealth and improve the quality of life of its citizens. I concluded.
Democratizing investment opportunities
In a related talk, Dr. Emomotimi Agama, Executive Director of the Securities and Exchange Commission (SEC), discussed how tokenization democratizes access to traditionally exclusive markets such as real estate and art. We debated whether it would be done. He explained that the digitization of these assets will allow individuals from all economic backgrounds to participate in investment opportunities that were previously limited to a select few. By lowering barriers to entry, tokenization increases investment diversification and facilitates broader participation in the wealth creation sector.
Agama further elaborated that tokenization of assets such as real estate will make assets accessible to a wider range of people, effectively democratizing wealth. This transformation will not only benefit investors, but will also increase financial inclusion by allowing more individuals to participate in markets that were previously out of reach.
Building a foundation for the future
In summary, both NITDA and SEC officials expressed optimism about the future of blockchain and tokenization in Nigeria. These technologies are gaining momentum and have the potential to create new opportunities in wealth management, financial inclusion, and economic growth. Collaboration between the public and private sectors and the establishment of a supportive regulatory environment are key to ensuring successful adoption and implementation of tokenized assets across various industries in Nigeria.
By investing in education, infrastructure and regulation, Nigeria could lead the continent in embracing a tokenized economy and driving long-term economic development.
