The government of Nigeria has signed a 3-year agreement with DAG (Developing Africa Group) to launch a wallet nationwide that would allow Nigerian citizens to make a profit off their Intellectual property rights.
Intellectual property thefts are experienced by people all around the world and Nigeria is no exception.
But with this new development, Nigerian citizens would be able to create and upload their IP rights to a software platform created by DAG.
On this platform, they can trade, sell or exchange their IPR(Intellectual Property Rights) locally and internationally for profits.
Profit, in this case, refers largely to royalties and proceeds from the transaction. These profits would go directly to the user’s wallet.
Any form of IPR including patent, trademarks, copyrights to songs, lyrics, videos, shows, lectures, podcasts, and all forms of streamable content can be uploaded, created, and traded.
How DAG Intends To Build This Platform For Nigeria.
The Developing Africa Group announced that it has chosen Koibanx as the official company to foster the integration of the nationwide wallet and the IPR tokenization.
Koibanx is an asset tokenization company that connects traditional regulated institutions like banks, non-banking financial institutions, insurance companies, and governments to crypto-financial capabilities through the Blockchain.
Koibanx would carry out the integration of the wallet, the payment token (both for the IP being sold and a stable token equivalent to the Naira), and vendors in play. Every creator would also be paid using the inbuilt token.
In addition, Koibanx mentioned that vendors in the agreement include one of the top card issuing companies worldwide, a content streaming platform, and top firms both in the legal and data mining industry, all of whose identity remains undisclosed.
In a Twitter space hosted by Fred Estante yesterday, the CEO and Co-founder of the Latin-America based company (Koibanx), Mr. Leo Elduayen said:
‘The crypto space is filled with projects that make a lot more noise than what they should. We are more of the team to under promise, over deliver and focus on long-term value creation.’Ceo, Koibanx
Nigeria In The Blockchain Space
Nigeria is the largest country in Africa with a gross population of over 200 million citizens. Nigeria is also advancing faster than other countries in the African continent.
According to the 2021 global cryptocurrency ownership data, Nigeria ranks number 3 on the list of top countries with cryptocurrency owners with an estimated 13 million and ranks number 6 on the global crypto adoption index in a research report from Chainanalysis.
In 2022, however, various regulations and bans have been placed on Crypto and Blockchain by the Nigerian government, reducing these numbers. However, Cryptocurrency and Blockchain adoption continue to prevail among the youths of Nigeria.
CEO of Paxful, Ray Youssef, in an interview with CoinDesk, attributed this development to “the intense drive and business aptitude of the Nigerian youth.”
The commercialization of IPR by the Nigerian government would only drive blockchain adoption more in the economy and present a leveled opportunity for citizens to understand and use the blockchain tech.
Algorand Blockchain was chosen as the underlying infrastructure to build the nationwide wallet and IPR commercialization platform for Nigeria.
This is a big announcement, coming just a few weeks after Algorand announced its FIFA partnership.
How This Development Impacts Nigeria
The creation of the IPR commercialization platform would impact various areas in the Nigerian economic system. Some of them are:
- Human capital development
- Elections in Nigeria
- Pan-African promotion
- Nigeria’s banking sector
Human Capital Development
CEO of the Developing Africa Group, Mr. Ben Oguntala, said that the commercialization of Nigeria’s IPR would:
‘Allow the ordinary Nigerian-without money, without influence but with talent- to be able to trade their way out of poverty’
Creating a better standard of living for Nigeria’s citizens would help to prevent human capital flight and would improve the quality of Nigeria’s existing human capital.
Citizens would also be encouraged to innovate and pitch ideas, knowing that they are protected by unreasonable proof of ownership on the blockchain.
Elections In Nigeria
The integration of blockchain to prove true ownership of intellectual property could extend to the voting activities during Nigeria’s elections.
Mr. Oguntala mentioned that during the 3-year pilot for the program, DAG intends to test the use of the platform for voting during elections starting at the local government level.
A positive result, according to him, would show the government that transparent (free & fair) elections are possible. Thus, opening a new use case for the IPR commercialization platform.
On this note, Mr. Oguntala said that ‘Nigeria as the giant of Africa cannot remain a giant except other countries in Africa like Kenya, Lesotho, … stands together’
Through Nigeria, DAG hopes to penetrate other African countries by introducing them to the IPR commercialization platform.
DAG intends to do this by providing their (IPR commercialization) solution to copyright theft; among other intellectual property evils, to other creatives in Africa.
Therefore, driving mass adoption in Africa and promoting Pan-Africanism.
Nigeria’s Banking Sector
The CEO of Koibanx said that the new development would require Nigerian banking connections until mass adoption of the platform is achieved.
This is because prepaid cards would be issued to verified users of the platform to authorize payments against the naira token value that they hold in their wallets.
Although users can send the inbuilt platform token to other users of the platform, they might face challenges when trying to transact with other individuals who are not registered on the platform.
Hence, the need for banking sector connections. When users try to transact with individuals who don’t use the platform, they would swipe their prepaid cards and the equivalent token worth of the amount they are trying to send would be burnt from their wallets and credited to the recipient’s bank account.
This is done from the backend by Koibanx developers. Transactions between two users of the IPR platform would, however, take the minimum Algo transaction fee of 0.001 Algo.
Would The Government Of Nigeria Create Its Marketplace For IPR Trading?
In CEO Leo Elduayen’s words,
‘The Nigerian government has agreed to not try to solve something that is already being solved in a better way by the private sector. So, they will create no marketplaces. There will however be integrations to other marketplaces that suit each of the IPRs being traded. The best marketplaces for streamable contents, NFTs, etc in the ecosystem will be used.’CEO, KOIBANX
How the Platform Would Release Its Features
DAG stated that releases would be done partially with the first release coming in three to four months. The organization says it will start by allowing users to create and upload copyrights as they are more popular than others.
DAG also plans to launch massive training and awareness programs once the project starts. You can sign up for their updates by subscribing to their newsletter.
This could well be the largest single-handed crypto project to drive adoption and blockchain and crypto enthusiasts are eager to see the turn this would take.