The Lagos state government in Nigeria has revealed an ambitious initiative to tokenize real estate, utilizing blockchain technology to improve transparency, efficiency, and simplicity in property transactions.
As per reports from local media, the goal of this initiative, as detailed in the Eko Revenue Plus Summit documents, is to substantially increase the state's internally generated revenue. Real estate tokenization is the process of transforming real estate assets into digital tokens stored on a blockchain. These tokens symbolize individual ownership stakes in a property, akin to how stocks signify ownership in a corporation.
Individuals can conveniently purchase, sell, or exchange these tokens on a blockchain platform, offering a simpler and more accessible method for investing in real estate.
Over a period of 16 months, the tokenization initiative will be implemented by the Ministry of Science and Technology in partnership with different agencies and partners. These entities will operate with a budget of 500 million naira ($314,465) provided by the state government to back the project.
The documents from the Eko Revenue Plus Summit emphasize the importance of real estate tokenization as a key tactic to boost Lagos State's internally generated revenue. The government's goal is to enhance transparency and efficiency in property transactions, thereby attracting a larger number of investors and increasing revenue through property taxes and transaction fees.
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