Blockchain is a distributed ledger technology that has the potential to revolutionize the real estate industry in Nigeria. With the current challenges experienced with land registration and title search, blockchain can offer solutions that are secure, transparent, and efficient.
One of the main problems facing the real estate industry in Nigeria is the lack of a centralized land registry system. This is because the land records can only be accessed through title search at the registry, which is quite a daunting process in most states of the Federation. However, the records in the registry are not even comprehensive. Majority of lands, even in urban cities, are not registered with the registry. This is also largely due to the cumbersome process involved in registering a land. So, in the actual sense, there is actually no comprehensive record of land ownership within the centralized land registry system. This has led to a lot of disputes and conflicts over land ownership, as well as fraud and corruption in the process of buying and selling land. However, blockchain technology can provide a decentralized database that can record land ownership and transfer of property titles securely and transparently.
Read also: What is Blockchain Technology? Meaning, Types, and Use Cases
Enable faster, cheaper, and more secure process
By using blockchain technology, the process of buying and selling properties in Nigeria can become faster, cheaper, and more secure. Smart contracts can be used to automate the process of transferring property ownership, thereby reducing the need for intermediaries and reducing the risk of fraud. Additionally, blockchain can provide a tamper-proof record of all transactions, which can help prevent disputes over property ownership.
Enable fractional ownership
Another way that blockchain can help solve real estate problems in Nigeria is by enabling fractional ownership. With blockchain, investors can own a fraction of a property, which can make it easier for people to invest in real estate and access the benefits of property ownership without having to own the entire property. This can be particularly useful for people who cannot afford to buy a property outright, or who want to diversify their investment portfolios.
Improve transparency and accountability
Finally, blockchain technology can help improve the transparency and accountability of the real estate industry in Nigeria. By providing a transparent and secure platform for recording transactions, blockchain can help prevent corruption and fraud, which are major problems in the industry. Additionally, blockchain can enable the government to track land ownership and transactions, which can help in the formulation of policies to address the challenges facing the real estate industry in Nigeria.
Read also: What is Smart Contract and Its Use Cases
Conclusion
In conclusion, blockchain technology has the potential to solve some of the major problems facing the real estate industry in Nigeria. By providing a secure and transparent platform for recording land ownership and transactions, blockchain can help reduce the risk of fraud and corruption, enable fractional ownership, and improve transparency and accountability in the industry. While there are still some challenges that need to be addressed, the potential benefits of using blockchain in the real estate industry in Nigeria are significant.
Kue Barinor Paul Esq is a legal practitioner and the Lead Partner at Blocklex Consulting. He specializes in blockchain technology and cryptocurrency regulations within the FinTech and digital economy ecosystems. Mr. Paul serves as the Head of Legal at Blockchain Nigeria User Group (BNUG) and holds a position on the board of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN).
