This decision was reached during a meeting on Wednesday, presided over by President Bola Tinubu.
The announcement was made public on Thursday by Nneka Ikem, Special Adviser to the Minister of Art, Culture and the Creative Economy, Hannatu Musawa. The primary aim of the CEDF is to offer financial support to creatives through a range of financial instruments.
In her address at the council meeting, Minister Musawa highlighted that the ministry has partnered with the Ministries of Justice, Finance, Industry, Trade and Investment, along with the Federal Inland Revenue Service and the Nigerian Copyright Commission, to facilitate the successful establishment of the Creative Economy Development Fund and the implementation of the Intellectual Property 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, 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.
Upon receiving the Council's approval, the ministry is putting forward the Creative Economy Development Fund Act aimed at establishing sustainable funding, effective administration and governance frameworks, as well as facilitating multilateral contributions.
The effectiveness of the CEDF will be evaluated based on its capacity to build a strong Intellectual Property asset portfolio, support the use of IP as collateral for financing, improve financial access through IP securitisation, and establish standards for IP valuation.