The Federal Executive Council has officially approved the establishment of the Creative Economy Development Fund (CEDF) and the implementation of the Intellectual Property Monetisation Pilot. This significant decision was made during a council meeting chaired by President Bola Tinubu on Wednesday, marking a pivotal moment for Nigeria’s creative industry.
The announcement was detailed in a statement released on Thursday by Nneka Ikem, Special Adviser to the Minister of Art, Culture and the Creative Economy, Hannatu Musawa. The establishment of the CEDF aims to provide essential funding to creatives through various financial instruments, a move designed to bolster the country’s vibrant creative sector.
During her presentation at the council meeting, Minister Musawa emphasized the collaborative efforts involved in this initiative. “We have worked closely with the Ministries of Justice, Finance, Industry, Trade and Investment, as well as the Federal Inland Revenue Service and the Nigerian Copyright Commission,” she stated, highlighting the broad support for the CEDF’s objectives.
Musawa described the CEDF as a “significant milestone in Nigeria’s creative industry,” with a focus on empowering young people. “We aim to create opportunities that leverage their innate creative talents and equip them with the tools to earn a quality living,” she explained, underscoring the fund’s potential impact on the next generation of artists and creators.
The CEDF will function as a Special Purpose Vehicle, providing funding through various financial instruments, including debt, quasi-equity, and equity. “This fund will also develop a transformative model for the securitisation and collateralisation of intellectual property assets,” Musawa noted, indicating that Nigerian creatives will be able to leverage their intellectual property as viable assets for securing financing.
The Intellectual Property Monetisation Pilot, developed in collaboration with the African Development Bank, is intended to provide valuable insights and practical experience for a comprehensive National IP Monetisation Framework. “This framework will be integrated into the National IP Policy,” she added, emphasizing the government’s commitment to empowering young creatives and promoting national identity.
Following the Council’s approval, the ministry plans to propose the Creative Economy Development Fund Act. This legislation aims to secure long-term funding, establish governance structures, and facilitate multilateral donations to ensure the fund’s sustainability.
The success of the CEDF will be measured by its ability to create a robust intellectual property asset base and enhance access to finance through IP securitisation. Musawa explained, “We will also focus on developing IP valuation standards to support the creative community.”
With these initiatives, Nigeria is taking significant steps to democratize access to finance for creatives, lowering barriers to entry and providing innovative solutions that do not rely on traditional collateral.
