In this article, Chima NWOKOJI explores the similarities between CBN’s Creative Industry Financing Initiative and Nigeria’s $100 billion Creative Economy Growth Plan, highlighting potential dangers that arise from policy instability.
In the global economy, the creative industries have become significant contributors to GDP and employment. Recognising this, governments worldwide have introduced initiatives aimed at harnessing the potential of their creative sectors. Nigeria, with its vast cultural heritage and burgeoning creative sector, is no exception. Two prominent initiatives aiming to capitalise on this potential are the halted Creative Industry Financing Initiative (CIFI) by the CBN and the recently launched $100 billion Creative Economy Growth Plan by Nigeria’s Ministry of Art, Culture, and the Creative Economy.
Despite being driven by different governmental bodies, both initiatives share similarities in their goals and approaches. But there is a deliberate denomination of one in dollars as target revenue and the other in naira as seed funding. This, according to stakeholders, is to create confusion and create different impressions about what is essentially the same project.
Although the CBN has halted intervention programmes, policy analysts believe that certain government initiatives ought to be institutionalised rather than duplicated to avoid wastage of resources. Both initiatives are vulnerable to the risks posed by inconsistent government policies, often referred to as policy somersaults.
After months of comprehensive planning, the Federal Government unveiled its bold and strategic plans to generate at least US$100 billion and create over two million jobs annually from Nigeria’s creative economy.
The government’s plan was unveiled on September 11, 2024, by the Honourable Minister of Art, Culture, and the Creative Economy, Hannatu Musa Musawa, at a roundtable for local and international investors, where she presented her ministry’s 8-Point Plan and Roadmap.
Musawa said the ministry has identified 14 pivotal initiatives to achieve its ambition, which will drive the sector’s growth and significantly boost government revenue from US$10 billion to US$20 billion. She grouped these initiatives under four unique pillars: technology, infrastructure and funding, international culture promotion, and intellectual property monetisation.
The Minister also listed some of the Ministry’s infrastructure project pipelines, including the Digital & Immersive Art Centre, the Renewed Hope Creative City at the Wole Soyinka Centre, Arts Village in Abuja, setting up of Creative Hubs in Nigeria’s 36 states, the National Entertainment Centre, Abuja Creative City, and the National Gallery of Art, among others.
Different sub-sectors at various stages of development include music (sound recording, live performances and music videos), visual media (movies, TV shows, comedy shows, podcasts, content creation), visual arts & crafts (canvas painting, design, sculpturing, woodwork and other craft works), heritage & museums, culinary arts, fashion, publishing (books, literary arts, poetry, magazines, etc.), and video gaming. These are no different from sectors earlier targeted by the CBN.
Analysts are worried that policy summersaults erode confidence in government institutions and create uncertainty, potentially leading to social unrest.
Some believe that policy reversals can disproportionately affect vulnerable populations and drive away skilled professionals. There is no doubt that this is one of the reasons the ‘Japa’ syndrome is growing every day
Abandoned projects and initiatives result in wasted resources.
For instance, in the investigation carried out at the University of Cambridge doctorate in management science between 2018 and 2022, the value of the 38 projects investigated cost Nigeria over $40 billion (over N6.4 . trillion). Little wonder the Senate, in May 2024, constituted a six-member ad hoc committee to investigate the abandonment of some federal government projects in different parts of the country, despite spending billions of naira for their construction.
These frequent policy shifts, according to experts, obscure accountability and encourage corruption and embezzlement.
The CBN’s CIFI
The creative industry intervention of the CBN was seen by analysts as a double-edged approach, as there was the CIFI promoted by the apex Bank and the Bankers’ Committee and also the remodelling of the National Theatre, Iganmu Lagos, all to spur growth in Nigeria’s creative sector. Established in May 2019, the CIFI was to be funded from the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS), operated by the Bankers’ Committee, with a seed fund of Twenty-Two Billion Nine Hundred Million Naira (N22.9 billion). The implementation framework sets single obligor limits (“SOL”) for each of the available loans under the CIFI. Whilst the SOL is N3 million for the Student Software Development Loan (“SSDL”), it is N50 million and N500 million for movie production and movie distribution, respectively. The framework does not specify an applicable SOL for loans relating to the other eligible sub-sectors, such as the fashion, IT, and music industries, but the initiative provides access to affordable financing for individuals and businesses involved in sectors such as fashion, information technology, music, movie production, and software engineering.
With this initiative, the CBN aimed to reduce Nigeria’s reliance on oil by diversifying the economy and harnessing the untapped potential of the country’s creative industries.
UNESCO has recognised Nigeria’s home video industry, otherwise known as Nollywood, as the world’s second-largest with a potential annual revenue of N522 billion.
Despite this realisation, professionals in the creative industry still run around to secure corporate sponsorship for their projects, a gap that was being filled by the CIFI loans.
Loans provided under CIFI come with relatively low interest of about 9 per cent, making it more accessible for small and medium-sized enterprises (SMEs) in the creative sector to finance their projects.
The initiative allows for non-conventional forms of collateral (e.g., NYSC certificates), understanding that most creative industry entrepreneurs do not have access to traditional forms of security.
Apart from financing, the CBN also aims to provide training and mentorship opportunities to young entrepreneurs, ensuring they can sustainably grow their businesses.
Another target of CIFI is to make Nigeria a global hub for creative talents by leveraging the country’s enormous pool of young and talented individuals.
$100bn Creative Economy Growth Plan
The $100 billion Creative Economy Growth Plan, launched by Nigeria’s Ministry of Art, Culture, and the Creative Economy under the leadership of the Honourable Minister, Hannatu Musawa, is a much larger, more comprehensive initiative. The plan seeks to generate $100 billion in annual revenue from the creative sector by 2030. This initiative aims to transform Nigeria into a global leader in creative and cultural industries, making it a major contributor to Nigeria’s GDP and job creation.
The plan emphasises building the infrastructure needed for the creative economy to thrive, such as studios, performance centres, galleries, and digital platforms.
The government aims to form partnerships with global stakeholders in the creative industry, thereby improving market access for Nigerian creatives and attracting foreign investment.
Emphasis is placed on technology adoption and digital transformation, ensuring that Nigeria’s creative industries can compete on a global scale.
The plan has a strong focus on inclusivity, ensuring that the benefits of a growing creative economy are felt across various demographics, including women, youth, and marginalised communities. It is also set to invest heavily in skill development and education to nurture creative talents, ensuring a steady supply of skilled professionals to meet the growing demands of the sector.
CIFI and CEGP: the similarities
Despite the difference in scope, both CBN’s Creative Industry Financing Initiative and the Ministry’s $100billion Creative Economy Growth Plan have several commonalities in their goals, objectives, and strategies:
Both initiatives share a core goal of economic diversification. The Nigerian economy has long been overly reliant on oil, and these initiatives aim to reduce this dependence by tapping into the creative economy. Through music, fashion, film, and technology, these initiatives hope to create alternative revenue streams for the Nigerian government and drive growth in non-oil sectors.
The unemployment rate in Nigeria is one of the highest in the world, particularly among youth. Both initiatives recognise the job creation potential of the creative sector. While CIFI supports SMEs in the creative space to grow their businesses and create employment, the $100 billion Creative Economy Growth Plan envisions the creation of millions of jobs by 2030 through both direct and indirect employment in creative fields.
A common hurdle for creatives in Nigeria has been access to finance. Both the CIFI and the $100 billion Creative Economy Growth Plan prioritise providing affordable loans and financial support to entrepreneurs.
They aim to close the financing gap that has held back the growth of creative industries in Nigeria. The use of non-traditional collateral under CIFI and large-scale international investment partnerships under the $100 billion plan both demonstrate a commitment to easing the financial burden on creatives.
Another key similarity is the emphasis on skill development. The Nigerian creative industry requires well-trained professionals to meet global standards. Both initiatives aim to bridge the skill gap by investing in training, mentorship, and education programmes. The Ministry’s focus on education in the $100 billion plan, which seeks to establish dedicated institutions for creative arts and culture, is a photocopy of CBN’s capacity-building initiatives for entrepreneurs under CIFI.
Both initiatives emphasise making Nigeria a global hub for creative talents. CIFI, by providing financing and capacity building, aims to make Nigerian creatives competitive internationally, especially in film, music, and fashion. The $100 billion plan, with its emphasis on international partnerships, infrastructure, and digital transformation, seeks to integrate Nigeria’s creative industries into the global economy, making them key players on the world stage.
In an increasingly digital world, both initiatives understand the role of technology in scaling the creative industries. The CBN’s support for IT and software engineering aligns with the $100 billion plan’s focus on digital platforms and technologies. By supporting tech integration in the creative process, both initiatives aim to make Nigerian creatives more innovative and competitive in a globalised digital market.
On this premise, one wonders why the ministry did not consider it necessary to build on the CIFI and drive it to a reasonable conclusion rather than wasting time crafting the same initiatives with well-coated grammar. The question is, where does the National Arts Theatre come into the growth plan? What happens to funds disbursed under the CIFI, especially as the CBN seems too preoccupied to go after beneficiaries?
Inherent dangers
While the intentions behind both initiatives are laudable, the biggest threat to their success lies in the phenomenon of policy summersault or policy instability. Policy summersault refers to the frequent changes or reversals in government policies, often due to a change in leadership or shifting priorities. It can lead to uncertainty, loss of investor confidence, and the eventual failure of otherwise promising programmes. Loans that have been disbursed under CIFI are already becoming charities. The CEGP has not made it very clear how it intends to incentivize talents that are hampered by lack of funding.
Both initiatives rely heavily on investor confidence. The $100 billion Creative Economy Growth Plan, in particular, depends on international partnerships and foreign direct investment to achieve its ambitious revenue goals. However the policy inconsistency itself is a put-off to foreign investors. Policy summersaults can make investors hesitant, as they cannot be sure whether the next government or administration will continue to support the initiative. The lack of policy continuity could lead to investors pulling out or refusing to commit, undermining the entire project.
The CIFI programme and the $100 billion plan both emphasise financing as a critical component. Policy shifts could lead to changes in the availability of funds, interest rates, or the terms of lending. If, for instance, a new administration decides to reallocate funds from creative industry financing to other sectors, it would leave many projects halfway completed or stifled due to a sudden lack of access to capital. This uncertainty hampers long-term planning and sustainable growth in the sector.
Creative industries, by nature, require long-term planning and development. A film production, for instance, can take years from script development to distribution. Similarly, building creative hubs, like cultural centres or tech incubation facilities, requires consistent policy support over extended periods.
The National Theatre, whose renovations has been going on for four years, was recently renamed the Wole Soyinka Centre for Culture and the Creative Arts.
The same CBN and bankers’ committee spearheading the renovation and restoration of the edifice in Lagos says it is close to completion.
The renovation of the National Theatre was flagged off in July 2021 after the federal government handed over the facility to the bankers’ committee.
Abubakar Suleiman, chief executive officer of Sterling Bank and member of the bankers’ committee, said, “ in the creative industry, it’s not just in the arts, it’s not just in technology, it’s not just in fashion, we wanted to create an ecosystem that can absorb all of the youthful energy and give them a platform to perform.”
Suleiman said when unveiled, the theatre would not be managed by the bankers’ committee or the government but will be managed professionally. Policy summersaults disrupt these long-term plans and lead to abandoned projects or wasted resources. This inconsistency discourages both local and international stakeholders from fully committing to the sector. It deters investments, affecting economic growth. If people perceive that an initiative like the $100 billion plan may not survive beyond the current administration, just like CIFI, they may not take advantage of it. Entrepreneurs who keyed into the CIFI initiative are presently confused and uncertain about future government support. Likewise, creatives may be reluctant to invest time and effort in projects supported by the $100 billion plan if they fear it will be scrapped after a government change.
Another danger of policy summerault is the potential dilution of objectives.
As new leaders take over, as is the case in CBN and the ministry, they often adjust or reinterpret existing policies to align with their political agenda. There is already a total shift in focus and bastardization in the impact of initiatives like CIFI.
Way forward
The Creative Industry Financing Initiative (CIFI) by the CBN and the $100 billion Creative Economy Growth Plan by Nigeria’s Ministry of Art, Culture, and the Creative Economy share a common vision.
To avoid waste,Governments should establish laws backing certain projects and initiatives to insulate them from political swings. It should engage in thorough policy impact assessments and always foster stakeholder engagement and consultation before enunciation. When extra energy and resources are spent on designing and preparing plans for all kinds of policies, there are always complex chains of reciprocal interactions and variables required in the translation of the policies into actions. Even in the event of a change of government, there is no need to discontinue such a policy.
There is a complete flip-flop in the approach or stance taken by the Ministry of Art, Culture and the Creative Economy, which looks like a coloured photocopy of the Central Bank of Nigeria’s (CBN’s) Creative Industry Financing Initiative (“CIFI”).
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