In a bold call to action, Kashifu Inuwa CCIE, the Director General of the National Information Technology Development Agency (NITDA), has urged industry leaders, government officials, and experts to harness the transformative power of blockchain technology to enhance asset management and spur economic development in Nigeria.
His remarks came during the Tokenised Economic Conference and Exhibitions, themed “Tokenised Economy 2024; Real-World Assets Tokenisation,” organized by Cyberchain in collaboration with BAZE University and NITDA.
Inuwa emphasized the critical role of technology in boosting the nation’s GDP growth and highlighted the conference as a vital platform for sharing insights on digital asset finance, capital markets, and fractional ownership in real estate.
He pointed out that tokenisation, which involves converting physical and digital assets into digital tokens on a blockchain, can revolutionize asset management, trading, and security.
Represented by Engr. Salisu Kaka, the Director of NITDA’s e-Government and Digital Economy Development department, Inuwa stated, “When assets are tokenised, a blockchain token is issued as a digital and legal representation of the real asset, enhancing liquidity and accessibility.”
He outlined the tokenisation process, which includes asset selection, legal compliance, establishing secure custody solutions, and distributing tokens through secure payment channels.
Inuwa noted the inefficiencies in the real estate market’s transfer and record-keeping processes and highlighted how tokenisation could automate these operations, leading to increased liquidity and transparency.
“It offers several advantages over traditional real estate financing, such as automating processes, increasing liquidity, lowering investment barriers, and improving transparency,” Inuwa said, positioning tokenisation as a promising development for the future of real estate markets.
In his vision for Nigeria as a leader in Africa’s tokenised economy, Inuwa praised Lagos State’s initiative to tokenise real estate, calling it a bold example for others to emulate. He advocated for tokenising sectors like agriculture, oil and gas, and securities to further drive economic growth.
However, Inuwa stressed the importance of establishing a clear regulatory framework to boost investor confidence and developing robust infrastructures to support the tokenised economy. “Real-world asset tokenisation offers a promising avenue for Nigeria to unlock its economic potential,” he concluded.
Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), also addressed the conference, noting that tokenisation breaks down traditional barriers, making investments in areas like real estate and art accessible to a broader audience. “Through tokenisation, these highly qualified assets become more accessible to a broader audience, democratizing wealth and enabling more inclusive financial participation,” he stated.
As Nigeria looks to position itself at the forefront of the tokenised economy in Africa, the collaboration between NITDA, Cyberchain, and educational institutions signals a proactive approach to embracing blockchain technology for enhanced economic development.
