Blockchain specialist, Tunde Ogunyankinnu, has highlighted the transformative potential of blockchain technology in revolutionising Nigerian supply chains.
He explained that by leveraging blockchain-powered smart contracts, businesses can automate critical processes such as order processing, inventory management, and payment approvals.
Smart contracts replace manual, paper-based processes with automated systems embedded in blockchain technology. Tasks like order processing, inventory management, and payment approvals are executed automatically once pre-defined conditions are met. This eliminates middlemen, reduces errors, and saves valuable time and resources.
This is contained in a statement issued and sent to PUNCH Online Tuesday.
The statement read, “Blockchain can unlock greater efficiency, transparency, and trust across the sector, positioning it for unprecedented growth and resilience.
“Supply chains today are incredibly complex, and the traditional methods of managing them are no longer sufficient. Smart contracts automate processes and ensure transparency, creating a more efficient and trustworthy system for all stakeholders.
“Consider a scenario where a supplier delivers goods, and payment is instantly triggered upon confirmation. With smart contracts, this process is recorded securely on the blockchain, ensuring no disputes arise and trust is maintained across the chain.”
At the heart of blockchain technology is transparency, a key enabler for modern supply chains. Blockchain provides an immutable and transparent record of every transaction within the supply chain, accessible in real-time by authorised parties. This visibility allows businesses to track goods from their origin to their final destination, minimizing fraud and ensuring the integrity of the supply chain.
“This not only ensures accountability but also allows businesses to track goods from origin to delivery. It’s a game-changer for industries that rely heavily on supply chain integrity, like agriculture and pharmaceuticals, where product traceability and quality control are paramount.”
Ogunyankinnu added that in Nigeria, adopting blockchain technology and smart contracts could yield immense benefits.
He said the procurement processes could become more secure with automated supplier verification, while businesses could save on transaction costs by reducing reliance on intermediaries.
“Faster payments and real-time data insights would improve inventory management and overall operational efficiency.
“The adoption of blockchain technology in supply chains can boost Nigeria’s competitiveness by enhancing efficiency and reducing bottlenecks. It has the potential to position Nigerian businesses as key players in the global market”, Ogunyankinnu stated.
Despite its promise, adopting blockchain technology in Nigeria isn’t without hurdles.
Ogunyankinnu emphasised the need for a clear legal framework, stronger data privacy measures, and enhanced digital skills among stakeholders.
“The technology is ready, but it’s the human and regulatory elements that need to catch up. We must address these challenges to fully unlock the potential of smart contracts and blockchain in our supply chains.”
As businesses increasingly explore blockchain-based solutions, smart contracts are proving to be a powerful tool for reimagining supply chain operations.
Ogunyankinnu believes that embracing this innovation could drive economic growth and build resilience within Nigeria’s supply chains.
“Smart contracts are more than just technology; they’re a way to build trust and efficiency in our systems. By addressing the challenges, we can unlock their full potential and create a more resilient supply chain for the future.”
