The Nigerian government has taken a significant step to support the creative industry by approving the establishment of the Creative Economy Development Fund (CEDF). This decision was made during a Federal Executive Council meeting chaired by President Bola Tinubu.
The CEDF aims to provide financial support to creative individuals and businesses through various funding mechanisms. This will help stimulate innovation, job creation, and economic growth in the creative sector. The government also approved the implementation of the Intellectual Property Monetization Pilot.
This initiative will explore ways to help creators monetize their intellectual property, such as copyrights, trademarks, and patents.
During a recent Federal Executive Council meeting, Minister of Art, Culture and the Creative Economy, Hannatu Musawa, announced that her ministry has partnered with several government agencies to establish the Creative Economy Development Fund (CEDF) and launch the Intellectual Property Monetization Pilot.
The CEDF is a groundbreaking initiative designed to support and empower young creatives in Nigeria. By providing financial assistance and resources, the ministry aims to help young people turn their creative passions into sustainable careers.
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.
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