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Presentation
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POTENTIAL OF BLOCKCHAIN TECHNOLOGY ON THE NIGERIAN REAL ESTATE TRANSACTION
A CASE STUDY OF LAGOS STATE

COMPILED BY: AFUN OLAMIDE . A MATRIC NO: ESM/16/8519 SUPERVISED BY: DR P.A AKINGOGUN
 INTRODUCTION
The potential of blockchain technology in the Nigerian
real estate market, specifically in Lagos State, is
immense. With its ability to create a transparent and
immutable ledger of all real estate transactions, STATEMENT OF PROBLEM
blockchain technology can reduce fraudulent
activities, simplify the transaction process, and lower The cumbersome RE transaction processes and high transaction costs.
costs. By eliminating intermediaries, such as real Corruption arising from undue bureaucracy.
estate agents and lawyers, the process of buying and 2
selling properties can be accelerated. However, there Involvement of numerous and unnecessary intermediaries.
are still barriers to the implementation of this Fraud potential
technology, such as lack of awareness and
technological infrastructure. Despite these challenges, Human errors in land registries etc.
the benefits of blockchain technology in the Nigerian
real estate market are significant, and stakeholders,
policymakers, and governments must work together to
address any impediments to its adoption.
RESEARCH QUESTIONS
What are Blockchain technology and its fundamentals?

What are the transaction processes in the real estate market?

What are the factors responsible for the current market transaction in real
estate?
What are the effects of Blockchain Technology in the real estate market?

AIM AND OBJECTIVES 3

This research aims to explore the potential of Blockchain Technology and its impact
on the Nigerian real estate market with a clear view to improving the process of
transacting in the market, by using Lagos state as a case study.
To understand the fundamentals of Blockchain Technology and its applications.
To explain the transaction process in the real estate market.
To examine the factors that influence the current transaction in the real estate
market.
To evaluate the effects of Blockchain Technology in the real estate transaction.
 justification
The lengthy RE transaction procedures and high
transaction costs, the use of several middlemen and
the possibility for fraud, corruption brought on by
excessive bureaucracy, lack of transparency, human Scope of study
mistakes in land registers, etc. are among the most This research work focuses on exploring the potentials
important problems. Application of Blockchain in the of blockchain in Nigeria RE using Lagos state as a case
Nigerian RE sector as discussed in this research study. Lagos was chosen, because of the dream
project can help explore the possibilities of BT and its destination for RE investments and the high rate of
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impact on the RE market using Lagos State as a case returns on investments in Nigeria. The information
study. gathered will be from professionals in the RE, the
This study’s most important contribution will explore Lagos Land Bureau, individuals and some institutions
the possibilities of BT in improving efficiency in the that have used BT.
Nigerian RE. This paper will also explore the
application of BT in the sector as an emerging
technology.
This study will give a summary of innovative theory to
give a clear understanding of the potential effects of
using BT.
 Study area
Lagos is the largest state in Nigeria, located at
6o34’60” N, 3o19’59” E and the third most populous in
Africa, with a population of 15.4 million as of 2015
within the city proper. Lagos city was the national
capital of Nigeria until December 1991 following the
government's decision to move their capital to Abuja in
the centre of the country. The Lagos metropolitan area
has a total population of roughly 23.5 million as of
2018, making it the largest metropolitan area in Africa.
Lagos is a major African financial centre and is the
economic hub of Lagos State and Nigeria at large.
Scope of study
This research study focuses on the effect of
Blockchain Technology on real estate transactions in
Lagos State, Nigeria. The study will investigate the
current challenges facing real estate transactions in
Lagos State, the potential benefits of Blockchain
Technology adoption, and the legal and regulatory
frameworks governing Blockchain Technology
adoption in real estate transactions in Lagos State. 5
The study will be conducted using both primary and
secondary data sources. Primary data will be collected
through interviews. Secondary data will be obtained
through a review of existing literature on Blockchain
Technology and its applications in the real estate
industry.
 LITERATURE REVIEW
Strategic Innovation and The Cycle of Technologies in the Nigerian Real Estate
1 Market
Gartner Hype Cycle for emerging technologies

Concept of Blockchain Technology

An Overview of Blockchain Technology
2 Blockchain Categorisation
Characteristics of Blockchain
Factors Affecting the Use of Blockchain Technology 6
Regulatory Framework of Blockchain Technology in Nigeria

Real Estate Market in Nigeria

3 Theoretical Framework of Real Estate Transaction Process
Factors Responsible for the transaction process

4 A Review of Best Practices of Blockchain Technology in the Real Estate Market

Blockchain Potentials for Real Estate Transformation
 METHODOLOGY
S/N ITEMS DETAILS
1 Research design This study utilizes a combination of interview and questionnaire methods (This
questionnaire-study is a pilot-study, meaning that the results of the
questionnaire are only used to get a wider perspective of the real estate
market and the attitudes within it). The collected data are then analyzed using
Nvivo and SPSS software. Nvivo aids in qualitative data, while SPSS enable
statistical analysis of the quantitative data.
2 Target population The target population for this study consists of stakeholders in Lagos state
real estate market; which includes Estate agents, Developers, Buyers/Seller
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and also experts in blockchain technology.
3 Sample Random sampling method was used to get a wider perspective and snowball
Techniques sampling was also adopted to get more responses.
4 Data Analysis Both qualitative and quantitative research data are analysed. Thematic
analysis is used for the qualitative data, while descriptive analysis and factor
analysis is majorly used for the quantitative data.
5 Method of Data This research is mainly carried out with primary data, which includes
Collection interviews and questionnaires. Google form was used to
 BACKGROUND INFORMATION
The data collected through questionnaires
from stakeholders in the real estate market
is broken down and analyzed. Real estate
agents made up 37.7% of stakeholders, Only 80.6% of the respondents are familiar
property developers were 16.9%, investors with the transaction process in the Lagos
were 19.5%, and other professionals were real estate market, while 19.4% do not. The
26%. Out of the respondents, 74% had bought analysis shows that 84.4% of the respondent 8
or sold property, while 26% had not. The age understands Lagos state’s transaction
range of respondents was predominantly process, while 19.6% do not.
between 18-35 years (67.6%), with 36-55
years making up only 27.3% and those above
55 years being the smallest group at 5.3%.
The majority of respondents were male
(75.3%) and held a Bachelor/HND degree
(80.5%), while 76.6% had 0-5 years of
experience in the real estate market
 Data presentation analysis
To understand the fundamentals of Blockchain Technology and its applications.
In an interview with Linda Obi, she defines blockchain as a secure digital ledger technology that enables
transparent and decentralized recording of information and data without the need for a central authority. She
emphasizes that cryptography and consensus mechanisms are key fundamentals that ensure the security and
accuracy of transactions on the blockchain. Linda also explains smart contracts as self-executing contracts that
automate transactions and eliminate intermediaries. She recommends that companies should consider
implementing new technologies to stay ahead of competitors and notes that the Nigerian real estate market is
in a better position to focus on implementing and developing new technologies. Thematic analysis was used for
this objective.
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To explain the transaction process in the real estate market.
the transaction process in Lagos State Real Estate Market was shown with the ranking . The first in ranking is
Negotiation with a mean value of 1.23 followed by transfer of ownership with a mean value of 1.22. Property
search came third with a mean of 1.19, and payment of fees and registration of property comes fourth with a
mean value of 1.18. Property inspection came last with a mean of 1.17.
 Data presentation analysis
To examine the factors that influence the current transaction in the real estate market.
Factor analysis for the 11 items of the factors that influence Lagos Real Estate Transactions. The analysis produced 4
factors, namely Disputes and Slow Government Registration, Traditional Practices and Policies Fees, Weak Land
Administration and Fraudulence, and Financial and Skilled Professional limitation. The Kaiser-Meyer-Olkin (KMO) value
is 0.749 and Bartlett’s test of sphericity is significant (p=0.000), these values show the items are factorable. The
reliability test was also carried out on the Items in the four factors. The details of the description for the individual items,
factor loading, and Cronbach alpha values are shown in the table. A reliability test was also done for each factor group.

To evaluate the effects of Blockchain Technology in the real estate transaction. 10

Understanding the benefits and barriers of using blockchain technology in real estate transactions is crucial in
evaluating its effects. Using descriptive analysis for the benefit: Increased transaction speed has a mean of 1.25;
Improved transparency with a mean of 1.26; Enhanced security with a mean of 1.42; Improved efficiency with a mean of
1.43; Improved land administration with a mean of 1.53; Increased market liquidity with a mean of 1.57; Reduced fraud
with a mean of 1.62; Reduced middle-manship with a mean of 1.65; Increased assess to financing with a mean of 1.78;
Low transaction cost with a mean of 1.94.
The barriers: Lack of awareness and understanding has a mean of 1.32; Perception of Blockchain technology has a mean
of 1.34; Regulatory issues with a mean of 1.51; High cost of implementation with a mean of 1.5; Limited access to the
necessary technological infrastructure with a mean of 1.52; Resistance to change with a mean of 1.52; Limited availability
of professionals with a mean of 1.62; Security concerns and issues related to data privacy with a mean of 1.82.
RECOMMENDATION
Blockchain technology could transform the Nigerian real estate market by
providing secure, tamper-proof digital ledgers without intermediaries,
potentially increasing transparency, reducing costs, and establishing trust. This
technology's decentralized and transparent approach to storing data and
transactions could transform various industries and markets by offering secure
storage and access to data and transactions through cryptography.
The implementation of blockchain technology in Nigerian real estate can
improve the market's efficiency by reducing the risk of errors and fraud in
transactions through tamper-proof and secure digital ledgers. By using smart
contracts, the process of property ownership transfer and rent collection can
be automated, reducing the need for intermediaries and increasing efficiency
while saving time and cost. 11
Implementing blockchain technology in Nigerian real estate can transform the
market by addressing inefficiencies and reducing the risk of errors and fraud in
transactions. By using tamper-proof and immutable ledgers and smart
contracts, the process of property ownership transfer and rent collection can
be automated, reducing the need for intermediaries and increasing efficiency
while saving time and cost.
To fully benefit from the potential of blockchain technology in the Nigerian real
estate market, stakeholders, organizations, and governments should
collaborate to address barriers to adoption, such as the development of
necessary technological infrastructure, regulatory issues, cost reduction, and
education and awareness. By taking a coordinated approach, the industry can
realize the benefits of improved speed, transparency, security, and efficiency
that blockchain technology offers
 CONCLUSION

Blockchain technology is a decentralized digital ledger that can store and record transactions and data. Its
implementation in the Nigerian real estate market can improve transparency, reduce fraudulent activities,
simplify the transaction process, and lower costs. In Lagos, all real estate transactions can be stored in an 12
immutable ledger, which can enhance trust and transparency. With blockchain, unnecessary intermediaries can
be eliminated, thereby accelerating the process of real estate transactions. To fully reap the benefits of
blockchain technology in the real estate market, stakeholders, policymakers, and governments must collaborate
to address any implementation barriers.
Thanks! 13

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