Author
-
Simisolu Soyombo
Senior Associate
A RENAISSANCE FOR CREATIVES: NIGERIA LAUNCHES FUND TO INVEST IN CREATIVE AND TECH STARTUPS
The creative industry comprises a group of independent sectors geared towards producing and promoting intellectual products and cultural values based on human creativity, while inducing an economical process. Activities in the industry crisscross sectors like art, culture, business, and technology.
The Nigerian creative industry encompasses players across various sectors like music, film, literature, design, fashion, arts and crafts, sports, architecture, photography, technology, performing arts, etc. In essence, creativity can be seen all around us in the clothes we wear, the music we listen to, the movies we watch, the advertisements on our screen, and more.
The role of the creative industry as a driver of growth and economic diversification is often underestimated. Creatives have the potential to generate revenue, add value and create jobs through value chains that contribute greatly to the economy. Studies show that the Nigerian creative industry employs about 4,200,000 (Four Million, Two Hundred Thousand) people across sectors including Media, Entertainment, Beauty, Lifestyle, Visual Arts, as well as Tourism and Hospitality, contributing a huge chunk to the country’s gross domestic product (GDP).
In a bid to encourage the potential of the creative industry, the Federal Government of Nigeria (“FGN“) launched a $618,000,000 (Six Hundred and Eighteen Million United States Dollars) fund under the Digital and Creative Enterprises Programme (the “Fund” “Programme”) aimed at promoting entrepreneurship and innovation in the digital technology and creative industries and targeted at job creation.
The Fund is made up of $170,000,000 (One Hundred and Seventy Million United States Dollars) from the African Development Bank (“AfDB”) and $100,000,000 (One Hundred Million United States Dollars) from the French Agency for Development (Agence Francaise de Development). Meanwhile, the Islamic Development Bank will provide $70,000,000 Seventy Million United States Dollars) in co-financing. The FGN also expects another $217,000,000 (Two Hundred and Seventeen Million United States Dollars) from the private sector and institutional investors. According to the AfDB, the benefits of the Programme to Nigeria’s economy are projected to be worth $6,400,000,000 (Six Billion, Four Hundred Million United States Dollars).
The Programme will be led by the Bank of Industry (“BOI”), based on a 2020 agreement with the FGN. Microsoft Corporation is expected to provide technical assistance, knowledge sharing, and capacity building, focusing on the talent pipeline.
The Programme is geared to support young Nigerian entrepreneurs aged 15 (Fifteen) to 35 (Thirty-Five) years involved in the early stages of creative, innovative, and technology-enabled ventures. It is also anticipated that the Programme will create loans to Micro, Small, and Medium Enterprises (MSMEs). Interestingly, of the $618,000,000 (Six Hundred and Eighteen Million United States Dollars), about $1,014,000 (One Million, Fourteen Thousand United States Dollars) will be dedicated to women-led startups in both sectors.
