Menu Close

NITDA’s Inuwa harps on transformative potential of Blockchain technology in asset management, economic development

Engr. Salisu Kaka, Director of e-Government and Digital Economy Development Department at NITDA, Representing Malam Kashifu Inuwa Abdullahi, CCIE, Director-General of the Agency, Delivering a Keynote Address at the Tokenised Economy 2024, Real-World Assets Tokenisation Conference, in Abuja, FCT     Photo: NITDA

*Kashifu Inuwa Abdullahi, CCIE, Director-General of the National Information Technology Development Agency, in a keynote address, outlines the benefits of tokenising physical and digital assets through Blockchain technology, emphasising its capacity to revolutionise asset management, exchange cum security, and development of the Nigerian economy

Isola Moses | ConsumerConnect

In underscoring the significance of technology as an enabler for the country’s Gross Domestic Product (GDP), Malam Kashifu Inuwa Abdullahi, CCIE, Director-General of the National Information Technology Development Agency (NITDA), has called for a concerted effort among industry players, government officials and experts to explore the transformative potential of Blockchain technology in asset management and economic development of Nigeria.

Inuwa noted this at the Tokenised Economic Conference and Exhibitions, with the theme, “Tokenised Economy 2024: Real-World Assets Tokenisation”, which Cyberchain in collaboration with the Baze University and NITDA organised in Abuja, FCT.

Recognising technology as an enabler for the Nigeria’s GDP growth, NITDA stated the conference sevwas a platform for industry professionals to share ideas and expertise in exploring opportunities in digital assets finance, capital markets, commodities, mortgage, bonds and real estate fractional ownership.

Benefits of tokenising physical, digital assets via Blockchain technology

Giving his keynote address at the event, Inuwa outlined the benefits of tokenising physical and digital assets through Blockchain technology and emphasised its capacity to revolutionise asset management, exchange and security.

Represented at the event by Engr. Salisu Kaka, Director of e-Government and Digital Economy Development Department at NITDA, Inuwa described tokenisation as converting traditional physical or digital assets into digital tokens recorded on a Blockchain.

While explaining that tokens serve as digital representations of real assets, Inuwa mentioned that “when assets are tokenised, a Blockchain token is issued as a digital and legal representation of the real asset which allows assets to be sold, held and traded in a digital format, enhancing liquidity and accessibility.”

The NITDA Chief further explained the process of tokenisation involves choosing the asset to be tokenised, complying with legal and regulatory requirements, establishing secure custody solutions, as well as Blockchain networks and distributing tokens to potential investors through secure payment channels.

Referencing real estate investment markets that are plagued by inefficient transfer and record-keeping processes, he asserted that tokenisation would mitigate the challenges by automating these processes.

Inuwa stated: “It offers several advantages over traditional real estate financing, such as automating processes, increasing liquidity, lowering investment barriers, and improving transparency. As a result, it is considered a promising development for the future of real estate markets.”

Stressing the need for Nigeria to position itself as the lead nation in the tokenised economy in Africa, Director-General of NITDA lauded the Lagos State Government’s plan to tokenise real estate.

He described the state’s move as “a bold move that could set an example for other states to follow.”

Tokenising other key sectors, including agriculture, oil and gas, securities, bonds and derivatives, Inuwa noted, could further accelerate wealth creation and economic growth in the country.

The Director-General, however, noted that it was essential to establish a clear regulatory framework that would boost the confidence of investors as well as develop strong infrastructures that would support the tokenised economy.

According to him, since the launch of the National Blockchain Policy (NBP) and the inauguration of its steering committee, NITDA has been at the forefront of promoting the use of emerging technologies particularly Blockchain technology by working closely with the Blockchain ecosystem in promoting the adoption of the Blockchain technology across all sectors of the country.

He said: “Real-world asset tokenisation would offer a promising avenue for Nigeria to unlock its economic potential and improve the lives of its citizens.

“Nigeria has the potential to become a leader in the tokenised economy in Africa.

“By investing in infrastructure, education, and a supportive regulatory environment, Nigeria can unlock the full potential of tokenisation and drive economic growth.”

In his remarks on the occasion, Dr. Emomotimi Agama Director-General of the Securities and Exchange Commission (SEC), spoke on how tokenisation breaks down traditional barriers and makes investments in areas, such as real estate and art accessible to a wider range of people, regardless of their financial status.

The shift, Inuwa further explained, would allow for the diversification of investments and would encourage more people to participate in previously exclusive markets.

Noting that tokenisation is a process that converts real-world assets into digital tokens, the Director-General added: “Through tokenisation, these highly qualified assets become more accessible to a broader audience, democratising wealth and enabling more inclusive financial participation.”

Kindly Share This Story

 

Kindly share this story