FG Establishes Creative Economy Development Fund

FG Establishes Creative Economy Development Fund

The Federal Executive Council has approved the creation of the Creative Economy Development Fund (CEDF) and the rollout of the Intellectual Property Monetization Pilot. This decision was made during a council meeting chaired by President Bola Tinubu on Wednesday.

Hannatu Musawa, the Minister of Arts, Culture, and Creative Economy, shared the news through a statement on Thursday, highlighting that the fund aims to support creatives by providing various financial resources.

Musawa noted that the ministry has worked in collaboration with the Ministries of Justice, Finance, Industry, Trade and Investment, the Federal Inland Revenue Service, and the Nigerian Copyright Commission to ensure the successful establishment of the CEDF and the implementation of the pilot program.

“The CEDF represents a significant step forward for Nigeria’s creative industry,” she stated, emphasizing its goal to empower young individuals by offering opportunities that harness their creative talents and provide them with sustainable livelihoods.

The CEDF will serve as a Special Purpose Vehicle, offering funding through instruments such as debt, quasi-equity, and equity. It aims to create a transformative model for securitizing intellectual property (IP) assets, enabling creatives to use their IP as collateral for securing financing. The fund seeks to democratize access to finance by lowering entry barriers and providing innovative solutions beyond traditional collateral requirements.

Additionally, the IP Monetisation Pilot, developed with the African Development Bank, will gather insights and practical experiences to shape a comprehensive National IP Monetisation Framework, which will be integrated into the National IP Policy.

Minister Musawa emphasized the government’s commitment to empowering young creatives, promoting national identity, and driving economic growth. The ministry plans to propose the Creative Economy Development Fund Act to establish long-term funding, governance structures, and multilateral donations.

The CEDF’s success will be assessed by its ability to build a strong IP asset base, facilitate IP collateralization for financing, enhance access to finance through IP securitization, and establish IP valuation standards.