Power of NFTs in Africa's growth

NFTs have taken the world by storm for being unique and irreplaceable, the new power of NFTs in Africa’s growth and development. Based on a blockchain ledger, they are cryptographic tokens designed to represent the ownership of unique items like digital art and collectables. Being a profitable digital asset nowadays, NFTs can be opted for in underdeveloped areas to resolve the prevalent economic crisis in Africa. Below are 12 ideas proposed to tackle penury in an African country, Nigeria:

Cryptocurrency donations to African charity via https://commerce.coinbase.com/checkout/da229411-d5a9-48fc-8ba2-2582a704b11c

1. To begin with, NFTs are non-fungible tokens which means, unlike two similar cryptocurrencies, no two NFTs are interchangeable. NFT possess its unique digital certificate, as well, to prove its authenticity and uniqueness. Due to its scarcity, NFT’s worth increase over time, making the owner win millions of dollars even in a single trade. This instant influx of enormous money from trading NFTs make them a lucrative asset for investment purposes, especially for young Nigerians suffering severely from poverty and looking to uplift their finances.
2. Although many people live free, there are a lot of them that are enslaved. It’s estimated that there are over 60 million slaves worldwide, and 56 million of them are female. Of these slaves, it’s believed that 27 million people suffer from forced labour. One way Nigeria can combat modern-day slavery is by leveraging new technologies like NFTs and cryptocurrencies to help the vulnerable diaspora become financially independent. By entering the digital market space and using their creativity to generate income, many people can take back control of their lives
3. According to digital artists, NFT is thriving in Nigeria because it has benefitted a lot of Nigerian artists so far. It has paved the way for many of them to reach out to a larger audience and gain international recognition for their knack. Not only that, it has increased the worth of their artwork eventually making them procure more money than usual. Many graphic designers and painters have racked up lump sums by crafting their intellectual property into NFTs and selling them on online marketplaces like OpenSea , Maxity NFT and super rare nft platforms only. One such example is a Nigerian artist, Osinachi Igwe, who gained immense popularity and wealth for selling his art as NFTs and landed a golden opportunity to sell his collection at the famous Christie’s auction house. Such precedents have inspired other Nigerian artists to go beyond the limitation of traditional art galleries to sell their artistry, earn global attention for their creative work and monetize their artistic.
4. Concerning the economy, the biggest issue in Nigeria is corruption prevalent in almost every department. Since the local currency is controlled and regulated by central authorities like the government, it is feasible for the politicians and local authorities to loot the hard-earned money of the tax-payers. Thus, investing in NFTs can radically lessen the corruption instilled in financial institutions and retain the profit of the local Nigerian community. Furthermore, the security protocols implemented by the blockchain ledger to protect NFT from hacking make it a secure and valuable alternative for investment purposes protecting the capital from theft.
5. NFTs possess the power to eradicate poverty in developing countries like Nigeria by promoting direct charities from donors to recipients. Along with many other advantages, NFTs also provide transparency in the transactions, making it viable to trace the ownership history of NFTs. Accepting donations and charities in the form of NFTs will help non-profit organizations in two ways. Firstly, they will be able to bank more money as the value of their NFT art collection appreciates over time. Secondly, they will be able to collect more funds from international organizations directly, without any government intermediatory, who often misuse the funds allocated for such organizations for their own.
6. Many banks in Nigeria charge enormous security deposits and surplus to open a bank account, burdening destitute Nigerians suffering from extreme poverty in their region. In this case, NFTs plays as an affordable asset for people to secure their money with little to no charges. Instead of keeping all the money in the banks and paying heavy-duty tariffs in exchange for the bank’s customer service, people can now protect their money by investing in NFTs and trading As NFT culture is booming, it will give them an escape from paying high remittances and escalate their financial status by earning massive profit returns from their digital investments.
7. When the global economy slumped, charitable donations sank. They weren’t feasible in person, and transferring money to charity was expensive. Crypto-philanthropy took off when cryptocurrency and digital assets like NFTs became the most efficient way to send money. Like, cryptocurrencies, NFTs have also grabbed people’s attention including celebrities, crypto-investors, millennials, and businessmen who recognize that many countries offer tax exemptions for donating art by selling off their digital art and donating the proceeds to a charity. Making NFTs accepted as charitable donations is a way for developing countries like Nigeria to get much-needed funds in the era of crypto funding — especially in cultures like Nigeria, where many citizens are dying from Cholera.
8. Recently, there has been a buzz around Nigerian musicians and content creators who sold their music and content as NFTs on online marketplaces. Nigerian arts and music, despite being famous for decades never commercially benefitted the original artists because a lot of their work has been stolen and counterfeited. Moreover, after all the hard work and creativity they put into creating music and content, they only get a little share of their profit as a large portion of revenues is stocked up by music labels. However, the NFTs empower the creators to claim complete ownership over their art and content and protect it from pilferage. They can generate huge revenues by acquiring all the profits from sales and bagging royalties, as well, as from each subsequent sale of NFTs.
9. With the adoption of Free market liberalism, the developed countries profited infinitely while the economic crisis prevailed in developing countries. The policies and regimes introduced by the world bank and IMF holistically boosted the economy of first-world countries. However, the economy of developing countries like Kenya, Nigeria, and South Africa plunged. So, to reduce the effect of Free market liberalism and rebuild the economy of Nigeria, the government should adopt and integrate NFTs and Cryptocurrencies into their financial institution to gain free will and reduce the dominating effect of world economics. It will reduce poverty and inequality in third-world countries like Nigeria by creating an equal level of economic opportunities for Nigerians as the rest of the
10. Despite being a wealthy country in Africa and having a GDP of 407 billion USD in the previous year, Nigeria struggles to perform economically well in the continent. The figures on the paper look impressive, but the reality paints a shockingly sad picture. 40% of the Nigerian population is estimated to live below the poverty line, and after the Covid pandemic, inflation sky-rocketed. The reason behind this is the disproportionate wealth distribution and financial exclusion. However, NFTs can reduce the wealth disparity in Nigeria by equipping people with better financial tools and services. They can store and invest their capital in NFTs rather their hoarding all of their money in centralized financial systems which are often at risk of fraud and devaluation. Likewise, NFTs can bridge the income inequality gap by creating an equal playing field for indigent Nigerians who remain unbanked due to a lack of proper documentation and financial
11. NFTs are revamping the luxury fashion industry by innovatively promoting luxury goods and building a bond of consumers to their favourite brands on a deeper Brands can engage more loyal customers by offering them perks like access to exclusive events, limited new editions, and special discounts. Many brands like Gucci, Nike, and Dolce & Gabbana have implemented NFTs into their collection to improve direct engagement with customers across the globe. NFTs are simply great for marketing strategies as they can build a strong community of fans and clients. Besides, brands can counter the culture of counterfeit products and pirated goods by incorporating NFTs as they are impossible to copy, thus preserving the exclusivity and scarcity of their digital goods.
12. Non-fungible token becomes a safe and flexible investment when coupled with a physical or tangible object. When NFTs were initially launched, only digital collectables were tokenized, which means NFTs of only digital arts were available. Later, the physical asset was also tied to an NFT, giving people the leverage to invest in physical assets through NFT. This tokenization of a Real-world object which could be a piece of land, jewellery, or real estate, makes the investment more flexible and valuable as multiple people can invest and share ownership of a single physical NFT. Thus investing in physical NFTs is a golden opportunity for Nigerians as they are scarce and high in demand. Also, it lowers the risk of scams and fraud, which are prevalent in a region like Nigeria when it comes to investing in a physical asset. We recommend you consider donating nfts funds or crypto to helpers Social Development Foundation to support their efforts towards out-of-school children's education.