The federal executive council on Wednesday approved the establishment of the creative economy development fund and the implementation of the intellectual property monetisation pilot
A statement by the Minister of art, culture, and the creative economy, Hannatu Musawa on Thursday in Abuja said the ministry collaborated with relevant government institutions to ensure the establishment of the CEDF and the IP monetisation pilot.
The institutions are ministries of justice, finance, industry, trade, and investment, as well as the Federal Inland Revenue Service ,FIRS and the Nigerian Copyright Commission ,NCC.
The Minister said “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 (SPV), 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 access barriers and offering innovative solutions not reliant on traditional collateral.
“The IP monetisation pilot, developed in collaboration with the African Development Bank (AfDB) through its investment in digital and creative enterprise (iDICE) 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.”
The ministry also proposed the Creative Economy Development Fund ,CEDF, Act to secure long-term funding, administration and governance structures, and multilateral donations.
Musawa said the fund’s success 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 securitization, and develop IP valuation standards.
She said the CEDF is also expected to create a vibrant creative business environment, generate new revenue streams through IP, promote industry best practices, and build investor confidence and trust.
The CEDF aims to provide funding to creative activities through various financial instruments.