The internet is awash with articles on the possibilities blockchain technology can provide. Yet seldom do we see real cases where it can impact, and better, the lives of everyday people. This may be about to change, as the African nation of Nigeria plans to overhaul its real estate market with the use of the blockchain, solving two main issues in the process. We discuss how Nigeria could soon have the most advanced property market in the world.
What is Nigeria’s Property Problem?
Nigeria’s property market has two major problems. The first is that around 95% of houses have no title or contestable deed. This has made land grabbing, and fraud, a major issue. Combined with its history, where land has often changed hands multiple times, there is no real way of knowing who owns what.
This has been exasperated by its complicated land title and documentation process. A backlog of this now has an estimated $900 billion of dead capital languishing in limbo. To kick-start the real estate industry, the Nigerian government has to rectify this issue, release the backlog and improve security when it comes to land. It is turning to blockchain technology to do it.
Using advanced technology in modern real estate is nothing new. In fact, though efforts in the United Kingdom and other Western countries may not seem as impressive and sweeping, technology is definitely improving services for buyers and sellers. WeBuyAnyHome’s sell house fast service is one such example. It uses advanced algorithms with multiple data points to provide a cash offer on a home in minutes. As a no obligation offer, this can vastly speed up the process and can see the money from a house sale arrive in a seller’s bank in a little as 7 days.
How Can Blockchain Technology Help?
Nigeria plans to use a system known as tokenization to deal with its issues. The real estate property that requires a deed will be turned into a digital document, known as a token. It will include all of the details needed, such as who owns the property, the title deed and any transactions. This is then stored on a transparent network, where everyone can see who owns it. When sold, this is also recorded so people can see the history of land ownership.
There have been similar schemes in other African countries, including Ghana and Kenya. However, none have had the government backing that Nigeria does. Very often, these schemes have been pushed by the private sector and thus have not been taken up by the general public. Their adoption has also been hindered within government itself, often by corrupt individuals who benefit from this chaos. The Kenyan government alone estimates that $470 million per annum is lost to real estate corruption.
Nigeria does need to fund and roll out this system, which will take time and money. Around 500 million naira have been dedicated to this, which will involve bankrolling everything from public awareness campaigns to developing the tech itself. All of this follows a wider policy of adoption from its government, who seem to be looking not just at real estate, but other ways blockchain technology can improve the quality of life in the country.
Founder Dinis Guarda
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