The Ministry of Finance Incorporated (MOFI) is championing the adoption of tokenisation as a transformative tool for Nigeria’s asset management and capital market. Tokenisation involves converting physical or financial assets into digital tokens, enabling secure trading via blockchain technology. This innovative approach could provide greater access to high-value assets like real estate, commodities, and even oil reserves, allowing investors to purchase fractional shares.
During World Investor Week 2024, MOFI’s Managing Director and CEO, Dr. Armstrong Takang, highlighted tokenisation as a vital strategy to unlock liquidity, transparency, and accessibility in Nigeria’s capital market. Tokenised assets, unlike cryptocurrencies, are tied to tangible resources, offering more stability. MOFI aims to tokenize underutilised assets, such as oil and gas reserves and natural resources like lithium and gold, to attract both domestic and international investors.
Takang outlined MOFI’s efforts to create a national asset registry to facilitate the tokenisation process, emphasizing the potential for Special Purpose Vehicles (SPVs) to structure federal assets for investment. This would allow Nigerians and the diaspora to own shares in these assets and receive dividends.
The Director-General of the Securities and Exchange Commission (SEC), Mr. Emomotimi Agama, supported the move, noting that tokenisation could broaden investment opportunities and boost capital formation in critical sectors. He also stressed the importance of investor education and protection to ensure a resilient and inclusive capital market.
This push for tokenisation aligns with President Bola Tinubu’s economic reform agenda, which aims to build a $1 trillion economy.
