The creative industry, which is an informal sector, stands a great chance of developing Nigeria socially and economically due to its potential. The industry according to a report credited to Jobberman is expected to create about 2.7million jobs and contribute about N5trillion to the nation’s GDP in 2025. Efforts by the Governor of the Central Bank, Godwin Emefiele in collaboration with players in the banking industry to provide cheap funding for the industry is expected to make projection possible. BAMIDELE FAMOOFO writes.
Sector projected to contribute N5trillion to GDP, create 2.7million jobs by 2025
Godwin Emefiele, Governor of the Central Bank of Nigeria is leaving no stones unturned in the plan to diversify the economy of Nigeria. Emefiele, a former chief executive of one of the leading commercial banks, enlisted the support of his former colleagues to move Africa’s largest economy from depending on oil as its key revenue earner to creating alternatives in the non-oil sector.
In line with its diversifying goal, Emefiele is creating funding to critical sectors of the economy to enhance productivity and grow the economy through creation of jobs. However, its intervention in the creative industry which targets primarily youths is seen as the wisest decision of the Emefiele’s Central Bank because the potential for job creation is very huge.
Experts have hinted that the industry can create 2.7million jobs in the economy in 2025. It is also expected to boost the nation’s Gross Domestic Product with about N5trillion in the same period.
The well-crafted Creative Industry Financing Initiative of the CBN is tailored towards creating cheap funding for the teeming youth in the industry and consequently boosts job creation. To achieve the goal, about N22billion was earmarked by the Bankers Committee (Central Bank and Bank CEOs) in 2019 to finance the industry.
The initiative covers four sub-sectors in the Creative Industry which are Fashion, Information Technology, Movie and Music.
“As at 2021, the CIFI scheme has disbursed over N3.22 billion to 356 beneficiaries across movie production, movie distribution, software development, fashion, and Information Technology verticals”
According to Emefiele, entrepreneurs who apply for the CIFI facility could get a minimum of N3million and a maximum of N500million.
Specifically, Software Engineering Students in Nigeria will be able to access up to N3.0million while up to N30 million is up for grabs for players in the Movie Production business. Those in the Movie Distribution business have the privilege to apply for up to N500 million. The loans which are available at a single digit interest rate of 9.0 percent covers the rental/service fees for Fashion and Information Technology Business and training fees, equipment fees, and rental fees, equipment fees, and rental/service fees for Music business.
Repayment period looks good as it extends from three to 10 years. For instance, the Software Engineering Student who obtains the loan could pay back in three years while the Movie Production and Distribution entrepreneur has a maximum of 10 years to make repayment.
For Fashion, Information Technology and Music, it is also a maximum of 10 years to repay their loan.
As at 2021, the CIFI scheme has disbursed over N3.22 billion to 356 beneficiaries across movie production, movie distribution, software development, fashion, and Information Technology verticals.
Facts behind the intervention
The CIFI was packaged by CBN and the Bankers Committee, following their yearly retreat in December 2018, to restore back lost opportunities and create employment in the entertainment industry, mostly dominated by youths.
Using the Agribusiness, Small and Medium Enterprises Investment Scheme, through which the banks set aside five per cent of their profit after tax yearly, the goal is to support startups and existing businesses in the creative industry space, as well as the development of creative industry parks across three major cities in Nigeria.
Emefiele, while explaining the rationale behind the intervention noted that Nigeria’s population of almost 200 million people is growing at close to 2.8 per cent annually, relative to the economy which is growing at close to two per cent in 2018. Accordingly, close to 60 per cent of the nation’s population are under the age of 35, indicating that Africa’s most populous country is blessed with a youthful population that will need to be engaged; and more importantly as youth unemployment rate stands at close to 36 per cent.
“With sadness, many of our youths graduate from universities but with no industries to employ them. Rather than roam about, some of these youths are unleashing their creative talents in creating jobs, not only for themselves; but also for others through the music, movie, fashion and IT skills.
“CBN and the Bankers Committee believe that the little we can do is to create opportunities for these youths to access credit and bank loans to grow their businesses. We cannot afford to let the talents of our youthful population go to waste, as it would portend great dangers for the progress of our nation. Efforts must therefore be made to harness the innovative and creative energy of our youths, towards enabling them to create productive ventures that will support improved wealth and job creation in Nigeria,” he said.
“Herbert Wigwe, Group Managing Director/CEO of Access Bank Plc, said work at the National Theatre has started in earnest and would be ready by December 2022. It is expected to create 35,000 JOBS among the youth”
National Theatre renovation
In addition to creating financing for the industry, the Central Bank and the Bankers’ Committee has also delved into establishing Creative Industry Parks in the six geographical zones in the country using the moribund National Theatre in Lagos as a pilot scheme.
Emefiele also explained that “The tremendous facelift would be reopening the touring potential the National Theatre offered during the FESTAC 77 Arts and Culture. Following the deployment of the pilot scheme in Lagos, we intend to set up similar parks in Kano, Port Harcourt or Enugu.
“The CBN’s plan was to develop a 40- acre Creative Industry Park around the National Theater including giving the Theatre itself a tremendous face lift; thereby reopening the touring potential the National Theater offered during the FESTAC 77 arts culture.
“Following the deployment of the pilot scheme in Lagos, we intend to set up similar parks in Kano, Port Harcourt or Enugu,” he said.
Herbert Wigwe, Group Managing Director/CEO of Access Bank Plc, said work at the National Theatre has started in earnest and would be ready by December 2022. It is expected to create 35,000 jobs among the youth.
The National Theatre, he explained, was a place to support the creative arts.
“It is not just Nigeria’s pride overtime the entire infrastructure has become dilapidated. All of that work is going on.
There is a second module to the National Theatre that has to do with music, fashion, IT, and film industry,” he said.
Emefiele had in February this year said the Bankers Committee is providing funding for a prototype cluster located to the north of the National Arts Theatre, a development which he labeled the “Signature Cluster”.
He said the facility will be a convenor – providing space, support network, business development and community engagement for the creative, cultural and technology sectors. The Signature Cluster will consist of a building each for Music, Film, Fashion and Information Technology verticals. In addition, a Welcome/Visitor’s Centre, Police and Fire Stations, and structured parking for up to 500 vehicles will be built.
The 44 hectare site adjourning the National Theatre would be developed and utilized for the development of purpose-built creative hubs for the Fashion Industry, Music and Film as well as IT.
In addition to the four signature buildings, Emefiele said other support facilities include multi-storey parking to accommodate 500 cars (the National Theatre currently has dedicated parking for 250 cars), a police station, a fire station and a visitors’ Welcome Centre.
“Our goal through the establishment of these parks is to create an environment where startups and existing businesses can be incubated and rewarded for their creativity. In each of these parks, efforts will be focused on discovering the most innovative young entrepreneurs across the music, movie, fashion and IT industries. Each park will be able to support skills acquisition for over 200,000 Nigerians.”
Emefiele noted that a growing creative industry would also support the growth of other sectors of the economy, like logistics, financial services, construction, as well as legal services companies as part of the efforts in the music and movie industry to support young entrepreneurs in the development of digital content at the park.
Other intervention programmes
Today, under the Central Bank’s development finance initiatives, the Nigerian banking sector regulator has granted N756.51 billion to 3,734,938 small holder farmers cultivating 4.6 million hectares of land, of which N120.24 billion was extended for the 2021 Wet Season to 627,051 farmers for 847,484 hectares of land, under the Anchor Borrowers’ Programme; for the Agribusiness/Small and Medium Enterprise Investment Scheme, the sum of N121.57 billion was disbursed to 32,617 beneficiaries; and for the Targeted Credit Facility, N318.17 billion was released to 679,422 beneficiaries, comprising 572,189 households and 107,233 Small and Medium Scale Enterprises. Under the National Youth Investment Fund, the Central Bank released N3.0 billion to 7,057 beneficiaries, of which 4,411 were individuals and 2,646 SMEs.
Under the N1.0 trillion Real Sector Facility, the CBN released N923.41 billion to 251 real sector projects, of which 87 were in light manufacturing, 40 in agro based industry, 32 in services and 11 in mining. On the N100 billion Healthcare Sector Intervention Facility, N98.41 billion was disbursed for 103 health care projects, of which, 26 are pharmaceuticals and 77 are in the hospital services. Similarly, the sum of N232.54 million was disbursed to 5 beneficiaries under the CBN Healthcare Sector Research and Development Intervention (Grant) Scheme for the development of testing kits and devices for Covid-19 and Lassa Fever.
On the National Mass Metering Programme, N36.04 billion was disbursed to 17 Meter Asset Providers, to nine (9) DisCos, for the procurement and installation of 657,562 electricity meters. On the Nigerian Electricity Market Stabilization Facility – 2 (NEMSF-2), the CBN released N120.29 billion to 11 DisCos, to provide liquidity support and stimulate critical infrastructure investment needed to improve service delivery and collection efficiency.
