Stimulating Creative Industry for Economic Sustainability

James Emejo writes that with proper funding support, the creative industry could contribute significantly to economic recovery and growth as well as boost the diversification agenda of the current administration.

Apart from preserving the culture and values of the society, the creative industry is adjudged to be a catalyst for the economic transformation of any country.

Hollywood in the United States and Bollywood in India are reference points in the efficacy and capabilities of the creative sector to contribute to Gross Domestic Product (GDP) of any nation.

In Nigeria, however, although the fame of the local movie industry, Nollywood transcends the boundaries, the full potential of the sector is believed to be largely untapped as the industry’s contribution to growth is rather negligible.

But as the federal government intensifies its drive towards economic diversification from oil, critical sectors including the creative industry, have been targeted, especially through the interventions by the Central Bank of Nigeria (CBN) in a conscious effort to reposition the sector.

Neglected and funding-strapped

Earlier in January, a new study by Abuja-based opinion research think-tank, Africa Polling Institute (API), called on the government and private sector players to fund and support the skit economy in view of its potential for economic diversification and poverty alleviation through massive job and wealth opportunities.

The study titled: “Skit Economy: An Assessment of Digital Content Creators in Nigeria”, stated that lending support to skit comedians and to a large extent movie producers as well as the creative industry in general will help to showcase the country’s massive talents and enhance digital creative content in the overall interest of the economy.

The report however, identified poor funding and lack of finance, high cost of production, lack of basic equipment, poor electricity supply among others as key concerns and bottlenecks hindering the growth and development of the comedy skit sector in the country.

Executive Director of API, Prof. Bell Ihua, said: “The study, therefore represents a novel attempt by the institute to understand a seemingly under-researched space, which is contributing significantly to the economic growth of the nation and mental wellbeing of citizens.”

 The unemployment challenge

Unemployment continues to pose grave challenges to the economy as data from the National Bureau of Statistics (NBS) said Nigeria’s unemployment rate rose to 33.3 per cent in the fourth quarter of 2020 (Q4 2020) compared to 27.1 per cent in Q2.

Notably, unemployment rate among young people  (15 to 34 years) increased to 42.5 per cent from 34.9 per cent, while the rate of underemployment for  the  same  age group  declined  to  21.0 per cent  from 28.2 per cent in  Q2.

As a result, analysts have linked the current security challenges directly to the youths’ idleness and this often fuels social unrest.

CBN’s Incursion

The apex bank, under the leadership of Mr. Godwin Emefiele, has taken the bull by the horns in trying to revamp the creative industry to enable it play its role as employment generator and growth catalyst.

Emefiele believes the creative industry could generate about $4.5 billion annually for the country and had put his money where his mouth by facilitating the resuscitation of the National Arts Theatre, Lagos as well as unveiled the N500 million- Creative Industry Financing Initiative (CIFI) to boost access to affordable finance.

The CIFI, which was in collaboration with the Bankers’ Committee, was targeted at boosting job creation in the country, particularly among the youths with a view to boosting access to long-term, low-cost financing by entrepreneurs and investors in the Nigerian creative and information technology sub-sectors.

The CBN, which had since issued guidelines for the disbursement of the facility, believed that the creative and IT sectors remained a critical sector to support social and inclusive growth and generate significant amount of employment given the involvement of Nigerians in the sector.

Emefiele, who said disbursement under the CIFI had reached over N5 billion, further challenged youths to take the advantage of the facility.

National Theatre Funding

Emefiele had in March 2021 disclosed that it was costing the bankers committee about $100 million to resuscitate and revamp the National Arts theatre, expressing optimism that the project would be completed by 2023.

While speaking at the Arise Fashion Show in Dubai,  United Arab Emirates,  the CBN Governor said the creative industry remained an important and large industry in Nigeria with revenue projection of about $4.5 billion annually, adding that the federal government was doing everything possible  to support the creative sector, and further pointing out that the monetary policy on its part remained committed to supporting the growth of the industry.

The CBN governor was full of confidence that beginning 2023,  the annual Arise Fashion exhibition would be held within the main bowl of the National Arts Theatre in Lagos.

Emefiele said, “It is not just about resuscitating it, but by the side of the National Arts Theater, what we do intend to do is to develop four creative hubs around the theater. Like you know, the National Art Center can sit in a particular gathering of at least 7,500 people.

“And we do hope that from 2023 and onwards we will begin to see these fashion shows being held around the premises of the National Arts theatre.”

He said, “I know that this is an event that the Arise company normally holds annually – usually in December to herald the Yuletide season.

“But I’m saying that hopefully beginning 2023 these shows will now be held within the main bowl of the National Arts Theater.”

He said apart from the four creative industrial hubs being built around the National Theatre, the facility will also support young and talented IT developers developing software to increase and earn revenue for themselves and also to support the revenue base of the country.

He said this was why the emphasis had been on first building infrastructure to support the growth of the creative industry in Nigeria.

He added that the CBN also partners the DMBs to set up the creative industry financing fund last year.

He explained, “That fund is meant to make it possible for a young and talented youth used in the creative industry, to be able to raise finance, to grow their business or to establish their business.

“Like we know, accessing finance has been a big problem for most people who want to go into good business.”

“And with the support of the central bank by establishing the creative industry financing Initiative, we’ve been able to unlock the potential of our youth to support the development of the creative sector in Nigeria.”

He said so far, about $5 billion had been disbursed to support creative industry initiatives both in fashion, films, television and in music in the country.

He added, “We hope that more and more of the youths can access this facility because this facility is a long-term loan with about two years moratorium and with interest rates at nine not more than nine per cent.

“What you will find ordinarily before now, when you want to set up a business like this, people will tell you that it is not a high-yield business that can be supported with loans of about 30 per cent or more.

“But  with what we came about through the creative industry, finance fund, young people are able to access this credit to set up their business in fashion, in IT,  in films and in music at no more than nine per cent.”

He further urged the youths to seize the opportunity to access the fund, as it is available to make life good for them.

He said, “We realise that by demography the youths are the majority in population in Nigeria. And we think that given this opportunity, it should be possible for us to grow the Nigerian economy. And for the good of all not just of creative industry participants, but also for government to support the growth of the Nigerian economy.

“So I thank Arise media for this event today. And I look forward to next year; we’ll meet you again in Lagos or any part of Nigeria for this show.

“So, we’re going to be welcoming all of you not in Dubai. Better to be in Nigeria, come next year and by the special grace of the Almighty, I will be there with you.”

Fulfilling a Policy Thrust

No doubt, Emefiele’s intervention in the creative industry is in fulfillment of policy commitment to reposition critical sectors of the economy.

The CBN governor had while unveiling the Five-year Policy Thrust of the CBN (2019 – 2024), in June 2019, had promised to extend the bank’s interventions to “our youth population who possess entrepreneurship skills in the creative industry”.

He said, “This group deserves our encouragement… We are confident that when implemented, these measures will help to insulate our economy from potential shocks in the global economy.”

 Testimonials and commendation

The CBN’s unrelenting efforts at revamping the nation’s creative industry have already produced visible outcomes.

In December 2021, Emefiele had expressed excitement over the pace of renovation work being carried out at the Lagos Creative and Entertainment Centre (LC&EC), popularly known as the National Arts Theatre in Iganmu, Lagos.

Emefiele, during an inspection tour by the project’s Steering Committee, alongside Lagos State Governor, Mr. Babajide Sanwo-Olu and Minister of Information and Culture, Mr. Lai Mohammed, expressed confidence that the work would be completed in record time.

The CBN governor, while exchanging views during the high-level tour of the facility, further pointed out major milestones had been achieved since the commencement of the renovation work early in 2021.

The Bankers’ Committee had committed over N40 billion investment to the project, which is expected to deliver far-reaching benefits to the Nigerian economy and support the initiatives of the Muhammadu Buhari-led administration to grow the creative industry and provide jobs to Nigeria’s youth population.

Following the award of the contracts in March 2021, the contractors and other specialists had followed a rigorous project plan of identifying and saving items of significant historical value and art, stripping away and decommissioning, carrying out integrity assessments, creating new services routes, and remodelling some of the interior spaces including nearly 300 units of conveniences.

Other members of the steering committee include the CBN Deputy Governor in charge of Financial System Stability (FSS), Mrs. Aishah Ahmad; the Group Managing Director of Access Bank and Chairman of the Body of Bank CEOs, Herbert Wigwe; and the Managing Director of GT Holding Company, Segun Agbaje.

They all attested to the fact that the entire heating, ventilation, air conditioning system, power, water supply and sewage systems were currently being replaced while fire safety standards are being significantly upgraded.

Emefiele said revamping the National Arts Theatre would unlock the creative talents of hundreds of thousands of Nigerian youths in the fields of music, movie production, fashion, and information technology.

The theatre, a national monument and most iconic symbol of arts and culture, is being restored and its facilities currently being upgraded to match the best standards of theatre and performance in the world.

Intervention Aiding Economic Diversification

 Also in December 2021, the Minister of State for Industry, Trade and Investment, Mrs. Maryam Katagum, attested to the fact that the Nigerian economy had now been fully diversified from oil and gas with remarkable advances into sectors including ICT, creative industry, services and agriculture under the leadership of President Muhammadu Buhari.

The minister also commended the “highly successful Arise Fashion Show 2021,” as part of Dubai Expo’s Nigeria National Day events, which took place in Dubai, United Arab Emirates.

She said the “show captivated the audience with the dynamic creativity and innovative styles of Nigerian fashion icons and pace setters” and demonstrated the potential of the sector to contribute substantially to economic growth and job creation.

Katagum, at the opening of the maiden Enjoy Nigeria Expo (ENEX) themed: “A Future Assured through Cultural Creativity” in Abuja, said the current administration is purposely committed to repositioning and building a more robust and resilient economy that is less dependent on the oil sector.