Nigeria Launches Creative Economy Development Fund to Empower Young Creatives
In a landmark initiative aimed at transforming Nigeria’s creative industry, the Ministry of Art, Culture and the Creative Economy has announced the establishment of the Creative Economy Development Fund (CEDF). This fund is designed to provide financial support to creatives through a variety of financial instruments, marking a significant milestone in the nation’s efforts to harness the potential of its creative talents.
In a memo presented to the Council, Barrister Hannatu Musa Musawa, the Minister of Art, Culture and the Creative Economy, outlined the collaborative efforts with key government bodies, including the Ministries of Justice, Finance, Industry, Trade and Investment, the Federal Inland Revenue Service, and the Nigerian Copyright Commission. These collaborations are crucial to the successful establishment of the CEDF and the implementation of the Intellectual Property (IP) Monetisation Pilot.
“The CEDF marks a significant milestone in Nigeria’s creative industry. The ministry aims to empower young people by creating opportunities that leverage their innate creative talents and equip them with the tools to earn a quality living,” stated Minister Musawa.
The CEDF will operate as a Special Purpose Vehicle (SPV), providing funding through various financial instruments such as debt, quasi-equity, and equity. One of the fund’s transformative goals is to develop a model for the securitization and collateralization of IP assets. This will enable Nigerian creatives to use their IP as viable assets for securing financing, thereby democratizing access to finance by lowering traditional barriers and offering innovative solutions.
In collaboration with the African Development Bank (AfDB) through its Investment in Digital and Creative Enterprise (iDICE) programme, the IP Monetisation Pilot will offer valuable insights and practical experience. These insights will inform the development of a comprehensive National IP Monetisation Framework, which will be integrated into the National IP Policy. “We are committed to empowering young creatives, promoting national identity, and driving economic growth,” Minister Musawa added.
Following the Council’s approval, the ministry proposes the Creative Economy Development Fund (CEDF) Act to secure long-term funding, establish robust administration and governance structures, and attract multilateral donations.
The success of the CEDF will be measured by its ability to create a robust IP asset base, enable IP collateralization for financing, enhance access to finance through IP securitization, and develop IP valuation standards. Additionally, it aims to foster a vibrant creative business environment, generate new revenue streams through IP, promote industry best practices, and build investor confidence and trust.
This initiative represents a significant step forward in Nigeria’s journey to becoming a global hub for creative talent, providing young creatives with the resources and support they need to thrive in the competitive global market.
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