Blockchain use-cases to restore trust in Nigeria’s economy

Wednesday, August 1st, 2018     Category: News

Experts have reiterated that adoption of blockchain technology in the various segments of the Nigerian economy can restore investors trust in the country.

The experts who spoke at a recent breakfast meeting organised by PricewaterhouseCoopers (PwC), highlighted blockchain used cases and how they can help shape the Nigerian society. For instance, the South African Reserve Bank alongside a group of settlement banks explored the prospect of using distributed ledger technology (DLT) in place of the current Real Time Gross Settlement (RTGS) system.

Blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. It is an open distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.

The Assistant Comptroller-General of Nigerian Custom Service, ICT-MOD unit, Aber Benjamin disclosed at the meeting that the agency is considering integration of blockchain as it could give a tamper-proof, non-refutable record which makes data unchangeable but updated, stored in chain while enforcing agree rules.

The Custom Service, he revealed, is considering strategies to innovate the way it is portrayed by the public.

Moving away from paper-based data has helped shaped the custom service with license registration. The licence which could take up to three years can now be issued within a month through the blockchain automated platform. The Nigerian Custom Service partnered with PwC.

Deji Soetan, Managing Partner of Blockchain Asset Management stated in his speech while rhetorically asking if the technology was the right technology, stated that it’s not every use cases that is applicable to the blockchain technology rather working round problems which the blockchain can best be applied is best suited. He said the blockchain is an incorruptible digital ledger that records not only financial transaction but also records anything of value which enables it a transfer of trust in a trustless society.

He further stated that it’s a shared public ledger which features the smart contract to automate transaction operating like a legal contract but with the use of an automated ledger, digital signature which is irrefutable and clear for everyone just like a normal signature. He stated that blockchain is applicable across various sector with different multiple uses cases going from digital currency, e-commerce, global payment such as featuring remitta.

Daniel Bloch CEO/Founder of Seso Global and organisation charged with building a blockchain mortgage platform based in Lagos, while speaking on unlocking capital in Emerging economies, stated that there are about 100 million housing shortages in Africa with over $500 billion in morgage deficiency.

He explained the Seso model of blockchain technology enables banks to capture data which can be used to issue mortgages. This can also be used to register the property. Property developers upload mortgage documents already approved by banks on the Seso platform. The properties are advertised for sale with the mortgage approval. The whole transaction is captured onto a private blockchain.

Blockchain pose a huge threat to major industries of the world, according to Andrew Nevin, chief economist for PwC Nigeria. He disclosed that the Big Four face major threat with the wave of this technology.

He cited a test project in South Africa known as project Khoka which saw the use of the blockchain in the tokenization of the South African Rand with the idea of creating distributed ledger between participating banks to ensure a wholesale payment system.