FG approves development fund to boost creative economy
Business a.m.
The Federal Executive Council (FEC) has given approval for the creation of the Creative Economy Development Fund to enhance Nigeria’s creative industry.
The approval was granted at the FEC meeting recently led by President Bola Ahmed Tinubu. According to a statement released on Thursday by Dr. Nneka Anibeze, Special Assistant on Media and Publicity to Minister Hannatu Musa Musawa, the fund will offer financial assistance to artists through various funding methods.
Musawa said in the memo to the Council that the ministry worked with various government departments and agencies, including the Ministries of Justice, Finance, Industry, Trade, and Investment, as well as the Federal Inland Revenue Service and the Nigerian Copyright Commission, to successfully implement the CEDF and the IP Monetisation Pilot.
The CEDF marks a major achievement in Nigeria’s creative sector. Musawa explained that the government aims to empower the youth by providing opportunities that utilize their creative skills, giving them the resources to generate a stable income.
Created as a Special Purpose Vehicle (SPV), the CEDF will provide financial assistance using tools like debt, quasi-equity, and equity financing.
Moreover, the fund presents a method for securitizing and providing collateral for IP assets, which enables Nigerian creators to utilize their intellectual property as a valid form of collateral to obtain funding.
The goal is to make finance more accessible by reducing obstacles and offering options besides traditional loans requiring collateral.
Musawa also emphasised the importance of the IP Monetisation Pilot, created in collaboration with the African Development Bank (AfDB) as part of its Investment in Digital and Creative Enterprise (iDICE) initiative.
The pilot will create ideas for developing a complete National IP Monetisation Framework to be incorporated into Nigeria’s National IP Policy.
“Our commitment is to empower young creatives, promote national identity, and foster economic growth through the creative sector,” Musawa added.
To ensure long-term sustainability, the ministry will propose a Creative Economy Development Fund Act to formalize governance structures, secure long-term funding, and attract multilateral support.
The success of the CEDF will be measured by its ability to create a robust IP asset base, enable the use of IP as collateral for financing, establish IP valuation standards, foster a vibrant creative business environment, generate new revenue streams through IP.
It would also promote industry best practices and build investor confidence and trust.
The Federal Government hopes that these initiatives will position the creative sector as a key driver of economic development and innovation, with far-reaching impacts on national growth and youth empowerment.