FG approves creative economy development fund

The Federal Executive Council has approved the establishment of the Creative Economy Development Fund and the implementation of the Intellectual Property Monetisation Pilot.

The approval was made on Wednesday at the Federal Executive Council meeting chaired by President Bola Tinubu.

This was disclosed in a statement released on Thursday by Nneka Ikem, Special Adviser to the Minister of Art, Culture and the Creative Economy, Hannatu Musawa.

The objective of the CEDF is to provide funding to creatives through various financial instruments.

In her presentation at the council meeting, the Minister of Art, Culture and the Creative Economy, Musawa, stated that the ministry has collaborated with the Ministries of Justice, Finance, Industry, Trade and Investment, as well as the Federal Inland Revenue Service and the Nigerian Copyright Commission to ensure the success of establishing the Creative Economy Development Fund and implementing the Intellectual Property 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.

“The CEDF, as a Special Purpose Vehicle, will provide funding to creatives through various financial instruments, including debt, quasi-equity, and equity.

“The fund will also develop a transformative model for the securitisation and collateralisation of IP assets, enabling Nigerian creatives to leverage their IP as viable assets for securing financing. The CEDF aims to democratise access to finance by lowering barriers to entry and offering innovative solutions not reliant on traditional collateral.

“The IP Monetisation Pilot, developed in collaboration with the African Development Bank through its Investment in Digital and Creative Enterprise programme, will provide valuable insights and practical experience to inform the development of a comprehensive National IP Monetisation Framework.

“This framework will be integrated into the National IP Policy. We are committed to empowering young creatives, promoting national identity, and driving economic growth,” Minister Musawa said.

Following approval by the Council, the ministry proposes the Creative Economy Development Fund Act to secure long-term funding, administration and governance structures, and multilateral donations.

The success of the CEDF will be measured by its ability to create a robust Intellectual Property asset base, enable IP collateralisation for financing, enhance access to finance through IP securitisation, and develop IP valuation standards.