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🇳🇬 Nigeria /Economy & Trade

FG initiative targets capital gap in Nigeria’s creative economy

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Nigeria's Federal Government has launched the Investment in Digital and Creative Enterprises (iDICE) program to address the capital shortage in the creative economy.
  • The iDICE program aims to build a financing system for the growing creative sector, providing skills development, enterprise support, and access to finance.
  • A key component is the iDICE Fund of Funds, targeting $170.6 million in capitalisation, with the government providing an anchor commitment of $85.3 million.

Nigeria's Federal Government is launching the Investment in Digital and Creative Enterprises (iDICE) program to tackle the critical shortage of capital hindering the growth of the nation's creative economy. The initiative aims to establish a robust financing system that supports the burgeoning sector, which includes film, music, fashion, and animation.

Nigeria had abundant creative talent but lacked the capital, skills, infrastructure and systems needed to turn that talent into sustainable businesses.

— Ife Adebayo, National Coordinator of iDICEExplaining the challenges facing Nigeria's creative sector.

According to Ife Adebayo, National Coordinator of iDICE, Nigeria possesses abundant creative talent but lacks the necessary capital, skills, infrastructure, and systems to transform this potential into sustainable businesses. The iDICE program, implemented by the Bank of Industry (BOI), is designed to provide a pathway from skills development to enterprise and financing, moving beyond one-off interventions.

The programme is designed to give creators a path from skills development to enterprise and financing, rather than treating government support as a one-off intervention.

— Ife Adebayo, National Coordinator of iDICEDescribing the holistic approach of the iDICE program.

A significant aspect of the program is the iDICE Fund of Funds, which has a minimum target capitalization of $170.6 million. The government, through iDICE, has committed $85.3 million as an anchor investment, with a mandate for the appointed fund manager, Kuramo Capital Management, to raise matching private capital. This fund will invest through venture-capital and micro-venture-capital funds focused on technology and creative businesses.

We have raw talent in abundance and trained, employable talent in shortage.

— Ife Adebayo, National Coordinator of iDICEIdentifying key gaps in Nigeria's creative sector.

Furthermore, iDICE is finalizing the onboarding of a fund manager for direct investment in creative businesses and has introduced debt financing options. The BOI has rolled out an iDICE Debt Fund and an Islamic Development Bank Murabaha Debt Fund, collectively earmarking $110 million for technology and creative sector startups. Adebayo emphasized that these financing options provide creators with broader access to capital, including equity and debt, addressing the challenge of "genius, in Nigeria, has always been forced to freelance."

Genius, in Nigeria, has always been forced to freelance.

— Ife Adebayo, National Coordinator of iDICEHighlighting the lack of institutional support for creative professionals.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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