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Nigeria’s Lagos state government has announced an ambitious plan to tokenize real estate, leveraging blockchain technology to enhance transparency, efficiency, and ease of transfer in property transactions. 

According to local media, this initiative, outlined in the Eko Revenue Plus Summit documents, aims to significantly boost the state’s internally generated revenue.

Revolutionizing real estate with blockchain

Real estate tokenization involves converting property assets into digital tokens on a blockchain. Each token represents a specific share of ownership in a property, similar to how stocks represent ownership in a company. 

These tokens can be easily bought, sold, or traded on a blockchain platform, providing a more streamlined and accessible way for individuals to invest in real estate.

The tokenization plan will unfold over 16 months, with the Ministry of Science and Technology spearheading the project in collaboration with various agencies and partners. These agencies will be working with a budget of 500 million naira ($314,465) allocated by the state government to support the initiative.

Boosting internally generated revenue

The Eko Revenue Plus Summit documents highlight real estate tokenization as a critical strategy for increasing Lagos State’s internally generated revenue. By making property transactions more transparent and efficient, the government aims to attract more investors and generate additional revenue from property taxes and transaction fees.

Tokenizing real estate can also help address issues such as land title fraud and lack of transparency in property ownership, which have long plagued the real estate sector in Nigeria. By recording property transactions on a blockchain, the state can ensure that all records are immutable and tamper-proof, providing higher security and trust for investors.

Collaboration and budget allocation

The success of the tokenization project will depend on effective collaboration to develop the necessary technological infrastructure, regulatory framework, and public awareness campaigns to support the initiative.

The 500 million naira budget will cover various expenses, including technology development, staff training, and public education. The state government is committed to ensuring that the project is implemented efficiently and effectively, focusing on delivering tangible benefits for investors and the broader public.

Nigeria is progressing toward a more positive blockchain policy with its National Information Technology Development Agency (NITDA), which has restructured the National Blockchain Policy Steering Committee (NBPSC) to reassess the policies guiding the implementation of the country’s National Blockchain Policy.