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Blockchain to Reinvent African Economies, Ecosystems, Organizations

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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.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Financial

Edun, Finance Minister Inaugurates NDIC New Management

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Mr Wale Edun, minister of Finance and coordinating minister of the Economy,  has inaugurated Mr Thompson Oludare Sunday, new managing director/chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), and Dr Kabir Sabo Katata, executive director (Operations),  at the Ministry of Finance, Abuja.

Mr Wale Edun, minister of Finance and coordinating minister of the Economy, flanked by Mr Thompson Oludare Sunday, new managing director/chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), and Dr Kabir Sabo Katata, executive director (Operations),

In his speech during the occasion, the Minister submitted that the NDIC, as a component of the financial safety-net has a crucial role to play in the nation’s march to economic stability and prosperity.

He therefore charged the Management team to bring their diverse wealth of experience to bear on their new assignment while assuring them of the ministry’s full support in the task ahead.

Responding, Mr Sunday who spoke on behalf of the Management team, expressed appreciation to His Excellency, President Bola Ahmed Tinubu for their appointment.

He assured the Hon Minister of the readiness of the Management under his leadership to live up to expectations of the President in particular and the nation in general in the discharge of their duties.

The Management  later received by the Corporation’s Head Office with a warm welcome by the workforce.

A statement signed by Hawwau Gambo, head, Communication & Public Affairs Department, revealed that Addressing the workers on behalf the Management team, Mr. Sunday promised to work in harmony with the staff to move the Corporation to its next level performance.

He stressed that the Management’s focus would be based on the public policy objectives, functions and mandate devolved on the Corporation by the enabling law that established it.

Thompson Oludare Sunday is a seasoned financial expert with over 30 years of regulatory and supervisory experience.

Having cut his teeth with the Central Bank of Nigeria (CBN) in 1989, he went ahead to acquire high-end knowledge in Central Banking, spending 24 unbroken years in banking supervision.

While his vast experience is in the regulation and supervision of licensed institutions, his deep expertise span corporate governance, risk management and compliance as veritable tool for ensuring the safety and soundness of institutions.

He is a highly analytical and cross functional team worker with strong interest in building individual and institutional capacity for transformation and excellence.

Thompson’s skills and experience were horned by several key responsibilities and special assignments he handled for the apex Bank before his retirement as a Director 2021.

Kabir Sabo Katata, ED (Operations),  is a quantitative energy strategist and computational finance expert with strong power trading and risk management experience.

He has over twenty-eight years’ experience in the design and management of technically innovative systems in multiple industries including telecommunications, IT, energy (petroleum & power), finance and government.

He is a specialist in sophisticated financial optimization, the application of modern statistical techniques and mathematics to energy, deposit insurance and banking sectors.

Dr. Katata joined the service of the Nigeria Deposit Insurance Corporation in 2012 as an Assistant Director in the Research, Policy and International Relations Department and rose to the pinnacle of his career as Director in January 2022, before his new appointment as Executive Director (Operations).

 

 


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E-Financial

Union Bank Rewards Customers with ₦5 Million Each in Save and Win Palli Promo Season 4 Grand Finale

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Union Bank of Nigeria has proudly concluded the fourth edition of its acclaimed Save and Win Palli Promo, awarding three fortunate customers a life-changing ₦5 million each at the grand finale. Since its inception, this transformative campaign has disbursed over ₦330 million in cash and gift prizes, touching the lives of more than 5,000 customers nationwide and elevating their financial prospects.

The grand prize winners, representing diverse regions across the country, emerged through transparent electronic draws supervised by regulatory authorities. The celebrated recipients, Alhaji Abubakar Sadiq Isah (Zaria Branch, North), Atilabor Seikemefa Friday (Sapele Branch, South-South), and Oluranti Ogunluyi (Ilaro Branch, South-West), received their prizes at The Stallion Plaza, Union Bank’s Head Office, Marina, Lagos, in the presence of other winners, and the Bank’s executive leadership led by Managing Director/CEO Yetunde Oni.

Vivian Imoh-Ita, Head of Retail and SME Business, reflected on the enduring impact of the campaign: “Over the past four years, the Save and Win Palli Promo has enriched the lives of thousands, providing crucial financial relief and rewarding diligent savers. We are unwavering in our commitment to empowering our customers so they may thrive and achieve their ambitions.”

Chief Brand and Marketing Officer, Olufunmilola Aluko, highlighted the Bank’s broader mission: “Union Bank is delighted by the ripple effect our targeted savings initiatives have created. We have seen a significant boost in savings culture, allowing customers to reach their financial goals, while our innovative promotions continue to cushion economic challenges and foster responsible financial habits.”

Kicking off in December 2024 and concluding in May 2025, the latest season saw over 3,000 customers rewarded with gifts and cash, including motorcycles, tricycles, fuel vouchers, and substantial cash prizes, with total giveaways exceeding ₦131 million.

To qualify, customers maintained a minimum balance of ₦10,000 and completed at least five transactions monthly. Monthly draw winners received ₦100,000, while quarterly draws featured exciting prizes such as motorcycles and tricycles.

As Season 4 draws to a close, Union Bank reaffirms its dedication to nurturing customer growth and extending robust financial support nationwide. Through continued innovation, the Bank remains steadfast in its mission to empower Nigerians and foster sustainable wealth for all.


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NIBBS: Banks Close 29.4m Accounts, Dormant Accounts Hit 33.39m

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Banks in Nigeria closed 29.4 million accounts as of March 2025, according to the latest report by the Nigerian Interbank Settlement System (NIBSS).

NIBBS: Banks Close 29.4m Accounts, Dormant Accounts Hit 33.39m

The figure represents a sharp year-on-year increase of 30.43 per cent from the 22.54 million closed accounts recorded in March 2024.

It also reflects a steady rise in account closures over recent months, with 33.29 million closed accounts reported in February 2025 and 29.43 million in January.

The report also revealed a significant increase in dormant accounts, which surged to 33.39 million in March 2025, up from 19.79 million in the same period in 2024, a 71.3 per cent rise in inactive accounts over the past year.

Despite the spike in closures and dormant accounts, the number of active bank accounts rose from 219.64 million in March 2024 to 320.05 million in March 2025, representing an increase of over 100 million, or 45.7 per cent.

NIBSS defines a dormant account as one that has seen no deposit, withdrawal, transfer, or point-of-sale transaction for a period of six months.

The surge in account closures and dormancy follows the Central Bank of Nigeria’s directive issued in December 2023, mandating commercial banks to restrict Tier-1 accounts not linked to a Bank Verification Number (BVN) and National Identification Number (NIN) by March 1, 2024.

In response to the directive, BVN enrolment increased from 61.6 million in April 2024 to 66.23 million by July 2025, as more Nigerians rushed to meet the CBN’s compliance deadline.

 

 


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