Lagos Embraces Blockchain: Real Estate Tokenization Begins to Transform Nigeria’s Investment Landscape
The Lagos State Government in Nigeria has announced plans to tokenize real estate as a measure to increase transparency, efficiency, and revenue in the real estate market. Tokenization involves converting physical real estate assets into digital tokens on the blockchain, allowing ownership to be divided into smaller, tradable shares. This makes it easier for individuals to invest in real estate, much like buying shares in a company.
Budget for Blockchain Adoption
Led by the Ministry of Science and Technology, the project will be implemented over 16 months with a budget of ₦500 million (approximately $314,465). The initiative is expected to increase Lagos State’s internally generated revenue by attracting more investors and making real estate transactions more secure and transparent. By recording real estate transactions on the blockchain, the state aims to address issues such as land title fraud and increase investor confidence.
This tokenization initiative represents a significant step forward in modernizing Nigeria’s real estate sector and could potentially serve as a model for other parts of Nigeria and beyond.
Nigeria & Crypto
Nigeria’s stance on cryptocurrencies is complex and evolving. Despite the Central Bank of Nigeria (CBN) banning banks from facilitating crypto transactions in 2021, Nigeria remains a world leader in crypto usage. Despite the restrictions, Nigerians have continued to trade cryptocurrencies using peer-to-peer (P2P) platforms.
In 2022, Nigeria ranked first in the world in cryptocurrency adoption, with an estimated 45% of the population (over 90 million people) using or owning cryptocurrencies. This widespread adoption highlights the disconnect between official policy and popular behavior.
However, Nigeria’s regulatory environment has become more stringent. In December 2023, the CBN allowed individuals to trade cryptocurrencies again but maintained the banking ban, and in February 2024, Nigeria further restricted access to major crypto exchanges such as Binance, OctaFX, and Coinbase. This has raised questions about the government’s true intentions for crypto adoption and regulation.
Despite these challenges, cryptocurrency use in Nigeria remains robust, fueled by factors such as economic instability, currency devaluation, and a young, tech-savvy population.
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