E-Financial
Blockchain to Reinvent African Economies, Ecosystems, Organizations
By Dipo Faulkner
In today’s fast emerging economic zones, technology adoption can be a journey of faith into the unknown, riddled with the conflicting priorities of modern societies, bouts of human and institutional inertia and not to forget, legal and regulatory considerations.
Having grown up in Nigeria, I have first-hand experience on how complex or excruciatingly difficult real estate transactions can be.
I stand to be corrected but the multibillion-dollar property and real estate sector, a key sector of the Nigerian economy, is largely driven by paper-based systems and processes, and the industry could do better with the aid of information technology. Advanced technology solutions will help tidy things up, and make transparency, trust and peace of mind a permanent feature of dealings in the sector.
Every document or financial transaction that needs to be exchanged, settled, confirmed, validated or signed has a similar element of friction. It is obvious that when these sorts of bottlenecks are eliminated, significant economic value is unlocked.
In any property deal, the number of participants that are required to be involved from realtors, banks, insurance companies, brokers, land registries, government tax authorities, and other intermediaries is incredible, not to mention the ever-present danger that the seller of the property may not be the actual owner of the property being sold.
In any case, I suspect this is not a problem unique to Nigeria. The respected Peruvian economist Hernando De Soto believes that up to five billion people worldwide suffer from lack of title to their property. He reckons that this global scenario results in more than $20 trillion of capital that is outside of the traditional financial services ecosystem.
Banks have a key role to play in this dynamic. Their functional and statutory obligations mean they must galvanize social harmony, business investment and economic value for their diverse stakeholders.
I am aware that Nigerian banks and financial institutions across Africa have consistently sought for ways to resolve key sector issues like this one. But before supporting economic activities, these banks must ensure that their product and service delivery value chains are driven by a creative workforce and technology innovation.
Also, I know from my interactions with chief technology officers in the financial services sector that their ongoing investments in technology systems has helped the sector to build operational resilience into their systems even they begin contemplating adopting new concepts and practices like blockchain.
Designed to inject the trust element in technology-enabled transactions, blockchains are built on shared ledgers where participants write transactions in near real-time to an unbreakable chain that becomes a permanent record of an asset or transaction. This is viewable by all parties in the transaction. Blockchain thus allows businesses to work together in a new way resulting in lower cost, faster transactions and less risk.
In this way, blockchain can be used by individuals who want to complete transactions involving multiple parties.
Large organizations may also want to use blockchain to collaborate across organizational silos. Ecosystems could tap blockchain to handle complex transactions across different jurisdictions, or governments may want to use it in the service of citizens.
This will have a profound impact, bringing wholesale change to organizations, ecosystems and economies. My personal view, also echoed by other experts, is that blockchain technology will do for transactions what the internet did for information — and in the relatively near future.
My thoughts on this subject seem to have been authenticated by two recent studies released by IBM’s Institute for Business Value (IBV) which found that banking and financial markets are adopting commercial blockchain solutions much faster than initially expected.
15% of banks and 14% of financial market institutions globally interviewed by IBM plan to adopt full-scale, commercial blockchain solutions in 2017. And within the next three years, 65% of banks expect to have blockchain solutions in production.
Consider how assets from cars to contracts, art to corporate bonds — even identity-based assets, such as health, product provenance, or tax records — can be shared, exchanged or transferred on a blockchain platform with greater efficiency and privacy.
As transaction costs plummet and the way organizations are governed matters more and more, blockchains will create a new distributed form of business governed and managed transparently through smart contracts that include agreed upon by-laws.
In the emerging blockchain economy, the role of third-party intermediaries to broker trust and/or to reconcile will increasingly be called into question as we reinvent new processes that eliminate the need for such reconciliation and intermediation.
While blockchains can powerfully improve businesses’ efficiency, trust and value, executives must carefully evaluate where blockchains can be used to gain improved efficiency and support new business models. I would therefore recommend that businesses answer these three questions:
- How fast should we move? Early movers in the blockchain adoption race may have an advantage as they are setting business standards and creating new models that will be used by future adopters of blockchain.
We’re also finding that these early adopters are better able to anticipate disruption, fighting off new competitors along the way.
- How can we scale across business networks? Once blockchain technology has scaled across multiple participants, they can anticipate achieving the kind of network effects that can drastically reduce the frictions that curb growth.
- How can we innovate with new revenue models? As new entrants and business models emerge, banks may be forced to defend current revenue streams or move to where the money will flow next.
New revenue models must anticipate the potential for disruption in areas core to the business today and in the future.
As the market evolves, blockchain technology may add at least one new revenue stream; and so, the potential to monetize reference data looms large.
My take is that African businesses, especially banks and non-bank financial institutions, will be the first set of enterprises to get on board the blockchain train, and fervently exploring the potential uses of blockchain technology.
Beyond banking and real estate, other economic sectors including manufacturing, retail and government agencies will pick and choose lessons from these trailblazers, recalibrating their needs and expectations as they gradually adopt blockchain technology.
In other climes, the Japan Stock Exchange and London Stock Exchange Group are two of the leading bourses collaborating with IBM to explore blockchain to manage risk and bring additional transparency to global financial markets.
Dipo Faulkner is the country general manager, IBM Nigeria.
Independent revenue remittance by the Government-Owned Enterprises (GOEs) moved from ₦200 billion in 2013 to over ₦2 trillion in 2024, Fiscal Responsibility Commission (FRC) confirmed the updated figure, on Wednesday.
FRC attributed the surge to collaboration between it and House of Representatives Public Accounts Committee (PAC).
Speaking at 2025 National Conference on Public Accounts and Fiscal Governance, held at the Transcorp Hilton, Abuja, Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, Esq however notes with concern persistent challenge despite achievements. He cited weak enforcement mechanisms, limited public awareness, and the slow domestication of the FRA at the subnational level as according to him, only 26 out of 36 states have adopted similar laws.
He advocated for the establishment of a National Fiscal Governance Framework to improve coordination and strengthen audit and oversight structures.
Muruako further underscored the need for strict adherence to constitutional provisions, particularly regarding public debt and borrowing, which remain under the exclusive legislative list. He urged federal and sub-national actors to align their fiscal policies under the renewed hope agenda of President Tinubu’s administration.
Muruako called on state and local government operators across Nigeria to adopt and fully implement fiscal responsibility laws in line with the federal framework.
The event organized by House of Representatives Public Accounts Committee (PAC), brought together key financial stakeholders to discuss strategies for promoting transparency and sustainable development in Nigeria’s public financial management.
He lauded administration’s of president Bola Ahmed Tinubu commitment to strengthening financial policies aimed at driving economic growth. He emphasized that states and local governments must “key into” the Fiscal Responsibility Act (FRA) to ensure fiscal discipline and alignment with federal financial standards.
Highlighting a critical legislative gap, Muruako noted that the FRA 2007 currently outlines 54 offenses but does not prescribe punishments for offenders. He called for the urgent amendment of the Act to include stronger penalties, thereby enhancing compliance and service delivery.
“The Act must be amended speedily for efficiency and to deliver real value to Nigerians,” he stressed.
He congratulated the PAC, led by Hon. Bamidele Salam, for hosting the conference, which he described as a pivotal step toward strengthening accountability in the public sector.
He advocated for the establishment of a National Fiscal Governance Framework to improve coordination and strengthen audit and oversight structures.
Muruako further underscored the need for strict adherence to constitutional provisions, particularly regarding public debt and borrowing, which remain under the Exclusive Legislative List. He urged federal and subnational actors to align their fiscal policies under the Renewed Hope agenda of President Tinubu’s administration.
Reaffirming the FRC’s commitment to advancing transparency and reducing financial leakages, Muruako pledged continued support to the PAC in institutionalizing sound public financial management practices.
He also congratulated the committee for securing Nigeria’s hosting rights for the 2025 West African Association of Public Accounts Committees (WAPAC) Annual Conference, describing it as a testament to Nigeria’s leadership in regional fiscal governance.
PalmPay, a leading digital banking platform in Africa has announced the launch of strategic partnerships with top-tier insurance providers to offer accessible, affordable and simplified insurance products directly within the PalmPay app.
This initiative reflects the brand’s continued commitment to deepening financial inclusion and underscores its mission to improve the wellbeing of everyday Nigerians.
With only about 8.9% of Nigerians currently covered by any form of health insurance, the country remains one of the least insured populations in Africa. Barriers such as low awareness, affordability challenges, and trust issues continue to hinder broader adoption of insurance products.
PalmPay’s new insurance offering directly addresses these challenges by simplifying the purchase and management of insurance policies within the app. The PalmPay insurance feature is designed to make essential coverage, from health to device, and life insurance easily accessible at affordable prices, eliminating the traditional complexities often associated with insurance.
“Insurance is often perceived as complex or inaccessible, especially among underserved communities.” said Habib Kowontan, Head of Wealth Product at PalmPay. “Through these partnerships, we aim to break down those barriers by offering simple, reliable and affordable insurance options that are easily accessible within the PalmPay app.”
With over 35 million users across Nigeria, PalmPay continues to evolve as a smart, consumer-first digital banking platform. The integration of insurance services complements its growing suite of offerings, which includes transfers, bill payments, high-interest savings, and debit card services, making PalmPay one of the most comprehensive digital banking platforms in the African market.
“Our goal at PalmPay is to remove barriers and make essential services easily accessible to everyone,” said Mr Chika Nwosu, Managing Director of PalmPay. “Through these strategic partnerships, we’re expanding our services to be more inclusive and empowering our users with products that will positively impact their lives and finances.”
This rollout marks a significant milestone in PalmPay’s broader strategy to empower users with tools that enhance their daily lives. Building not just a payments app, but a smart and trusted financial partner for millions of Nigerians.
In a timely gesture aimed at improving the plight of internally displaced persons (IDP) in Benue State, leading financial institution, Fidelity Bank Plc, has distributed mattresses and essential food items to over 2,000 victims of the Yelwata attacks currently taking refuge at the Ultra-Modern International Market IDP Camp in Makurdi.
Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka (Left); CEO, The Abbasid Charity Foundation, Hauwa Abbas (Centre); and Branch Leader, Fidelity Bank Plc, Makurdi, Terwase (Right), representing the Regional Bank Head, North Central, Sadi Zawiya, with some beneficiaries during the Fidelity Food Bank distribution event in Makurdi, Benue State recently.
The donation, which was carried out in collaboration with the Abbasid Charity Foundation, is part of Fidelity Bank’s ongoing commitment to supporting vulnerable communities through its flagship Fidelity Food Bank program. Since its launch in April 2023, the Food Bank has distributed over 200,000 food packs to beneficiaries across Nigeria’s six geo-political zones.
Speaking about the donation event, the bank’s Divisional Head, Brand and Communications, Dr. Meksley Nwagboh reaffirmed Fidelity Bank’s dedication to Corporate Social Responsibility (CSR) and its mission to uplift communities.
His words, “Since its launch, the Fidelity Food Bank initiative has helped to alleviate the effect of poverty and malnutrition across the country. We are honored to be back in Benue State to continue this impactful initiative, and we hope that today’s donation brings much-needed relief and comfort to the beneficiaries during this difficult time”.
In her remarks, the Executive Officer, the Abbasid Charity Foundation, Mrs. Hawa Abbas, emphasized the importance of restoring dignity to the displaced, stating that the donation of mattresses was to ensure the IDPs no longer sleep on bare floors.
“This gesture is our way of letting the displaced persons know that they are not forgotten. We care deeply for them, and we hope this donation offers some comfort and hope, even in these difficult circumstances,” Abbas noted.
The Executive Secretary of the Benue State Emergency Management Agency (SEMA), Dr. James Iorpuu, who was represented by Camp Manager, Mr. Robert Nyom, expressed deep appreciation to Fidelity Bank and the Abbasid Charity Foundation for their timely support.
“Your intervention has brought much-needed relief to the camp and we thank you for your compassion and generosity towards improving the welfare of the displaced persons,” he said.
The bank’s outreach to the International Market IDP Camp in Makurdi represents the most recent of its ongoing critical and timely interventions. Previously, through its Food Bank Initiative, the bank provided essential food items to more than 1,500 residents impacted by the recent flood disaster in Mokwa, Niger State.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
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