Digital Asset Markets and the Next One Hundred Trillion Dollars (DAM-N1HTD)

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Nicky Okoye discusses the strategic impact of digital asset markets in the growth and dynamics of the global markets and dives deep into the monumental forces that are driving the growth of the next hundred trillion dollars in global GDP.

In this series of essays, policy makers, legislators, enterprise executives and investors can gain strategic positioning variables as they unfold in real time. Digital transformation is driving an unprecedented growth in global GDP (gross domestic product), according to several sources, including the World Bank, the World Economic Forum etc. by the year 2050, global GDP is expected to grow to over $200 trillion, this is up from $105 trillion global GDP recorded in 2023, and $115 trillion recorded today.

According to Statista, as at December 31st 2023, the total market capitalisation of global equity capital markets stood at $111.2 trillion USD. This indicates that as at December 2023, the global equity markets total capitalization was recorded at over 100% of global GDP, indicating that growth in global GDP, is driving a consistent rise in global equity capitalisation. Our African capital markets are recording a very different relationship with GDP. Let’s look at the Nigerian capital markets for instance, our total equities market capitalisation is hovering between $39 billion to $43 billon, depending on the exchange rate and prices of equities on the day of calculation. This is currently 10% to 15% of Nigeria’s GDP.

In this respect, if we are to make very serious impactful efforts to grow the Nigerian economy to reach its true potential, which I believe should be north of $1 trillion in GDP, it will require a comprehensive transformation and transition of Nigerian asset classes and the Nigerian capital markets into 21st century Digital Asset Markets. This is my opinion and I intend to make a case, as best I can, for this strategic approach in investment and capital structuring which supports Nation building, for national, sub-national and enterprise development over the long term.

As we undergo tectonic shifts in key economic indies across the World, especially in terms of geopolitics, access to capital and access to technology, we must remind ourselves that we are fortunate to be alive to witness these disruptive times. Disruptions and transformations in technology, in business, in governmental geopolitical alliances and so on, are all coming at us left, right and centre. And to be honest, it can get quite overwhelming. This is especially true for some of us that have lived through several other disruptive global shifts during the course of our lives and our careers. In this regard, I have taken it upon myself to provide strategic navigation and guidance for investors who seek to rise above these disruptions, the tariffs wars, the technology wars, the battle for access to capital and subsequently the drive for job creation and prosperity, which are the ultimate goals for all leaders of good conscience, and determined nation builders.

In my cases, my thesis and my reports, you will always find it is written with a bias in favour of Nigeria, in favour of Africa and to provide strategic support for the repositioning for all people of African descent wherever they may be or live. Looking closer at what I consider my most intriguing subject matter, the global battle for access to capital, I will make bold to say that Africa is being short changed and this generation of Africans must address this once and for all, if we are going to leave a strong legacy for the next generation of Africans. My position in this DAM-N1HTD series, will consist of specialised advocacy which seeks to dump the traditional pathways for access to global capital, which includes going to London or New York, with our caps in hand asking for investment to be made in our projects and our companies. My preferred approach will involve using our ability to leverage our own tangible assets to build sophisticated structures that will unlock wealth and capital for the short, mid and long term. In other words, a truly 21st century methodological solution, which I call Digital Asset Markets Strategy (DAMS), for which I have authored a strategic comprehensive guideline, we will get into this in future reports in this DAM-N1HTD series. As Digital Transformation drives disruption across industries, the capital markets and financial systems industry stands out as most strategic and most ready for a full digital transformation.

Once we are able to guide Nigeria, and other African Nation states in the processes required for adopting this new strategic investment digital assets marketplace, we will be guaranteeing the creation of monumental fortunes for wealth conscious investors, institutions, Nation States and sub-nationals across Nigeria and subsequently across the entire African continent. In my opinion, the proposed full adoption of “Digital Asset Markets” within Nigeria’s capital market ecosystem and subsequently across Africa, is going to be a game changer for wealth creation and economic growth sustainability for many years to come. In regard to supporting stakeholders on their nation building journey, I will be sharing elements and exerts from my “Digital Asset Markets “Strategy” guideline, within this DAM-N1HTD series from time to time. My “Digital Asset Markets Strategy” guideline will be especially useful for designing new institutional wealth-maps that are ideal for developing national and regional digital assets investment infrastructure. A very exciting resulting benefit for implementing my “Digital Asset Markets Strategy”, will be the sustainable access to the capital liquidity that will be unlocked, this is so badly required at this stage in our history, for nation states, subnational regions, enterprises as well as for entrepreneurs.

It is pertinent to note that as far back as 2019, in a study conducted by PWC, it stated that in the Nigerian economy was sitting on as much as $700 – $900 billion worth of, what is considered dead assets in financial terms. PWC, defined dead assets as capital assets that are not producing revenue or due to certain challenges cannot be leveraged to enhance productivity. Assets across Nigeria, that currently fit this description include, but are not limited to, billions of dollars in valuable real estate, economic and structural infrastructure, movable and unmovable assets, music files & catalogues, art work, sports franchises, pipe lines, power plants, the list is endless. Once we get started, the digital asset markets will completely redefine the future of African finance, investment and Africa’s capital markets industry. We are indeed living in exciting times. It is pertinent to note, that with the full adoption of the digital asset markets across Nigeria and subsequently Africa, we will be providing a golden opportunity, for us Africans to create new monumental wealth for all our people, regardless of our vocation and regardless of wherever, on the planet, we may live.

I am very confident that effectively implementing the digital asset markets in Nigeria and subsequently across Africa, we will be providing for the first time in Nigeria’s and Africa’s history, a unique opportunity to demonstrate the true measure of Nigeria’s and Africa’s entire wealth position.

This is nothing short of revolutionary. I am committed to supporting the efforts to build this new digital asset marketplace on the World’s newest technology platforms including supporting efforts to build and operate a pan-African blockchain ecosystem. This approach, which will be unique to us in Africa, will make our digital asset markets’ impact and global transparency even more powerful over the long term. I have designed and authored this Digital Asset Markets and the Next One Hundred Trillion Dollars (DAM-N1HTD) series, as my own contribution to support policy makers, legislators, investors, enterprise executives and entrepreneurs all across Nigeria, Africa, the Carbbean and subsequently across the World. This DAM-N1HTD series will be especially impactful and useful for investors of African descent to make strategic and informed investment decisions as we navigate the disruptions of the 21st century and the forth industrial revolution. •Dr Nicky Okoye is a Global Investment Advisor