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Odimmegwa Johnpeter/Abuja
The Federal Executive Council has approved the establishment of the Creative Economy Development Fund (CEDF) and the implementation of the Intellectual Property (IP) Monetisation Pilot.
The approval was made on Wednesday at the Federal Executive Council meeting chaired by President Bola Ahmed Tinubu. This was contained in a statement signed by Nneka Ikem-Anibeze Ph.d, SA Media and Publicity, FMACCE.
The CEDF objective is to provide funding to creatives through various financial instruments.
In a memo presented to the Council, the Minister of Art, Culture and the Creative Economy, Barrister Hannatu Musa 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 the establishment of the Creative Economy Development Fund (CEDF) and the implementation of the Intellectual Property (IP) 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 (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 securitization and collateralization of IP assets, enabling Nigerian creatives to leverage their IP as viable assets for securing financing. The CEDF aims to democratize 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,” Minister Musawa said.
Following approval by the Council, the ministry proposes the Creative Economy Development Fund (CEDF) Act to secure long-term funding, administration and governance structures and multilateral donations.
The CEDF’s success will be measured by its ability to create a robust Intellectual Property asset base, enable IP collateralization for financing, enhance access to finance through IP securitization, and develop IP valuation standards. Additionally, it will foster a vibrant creative business environment, generate new revenue streams through IP, promote industry best practices and build investor confidence and trust.
END
24-10-2024
