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Creative Economy: Nigeria, AfDB set to launch $617m IDICE fund for youth empowerment, job opportunities

Hannatu Musawa, Minister for Arts, Culture and Creative Economy (r) and Mr. Mr. Lamin Barrow, Director General of AfDB, in Abuja, FCT

*Hannatu Musawa, Minister for Arts, Culture and Creative Economy, says the Nigerian Government is set to launch a $617 million Investment in Digital and Creative Enterprises (IDICE) fund in collaboration with the African Development Bank for youth empowerment and employment opportunities in the Creative Economy

Alexander Davis | ConsumerConnect

Hannatu Musawa, Honourable Minister for Arts, Culture and Creative Economy, says the Nigerian Government is set to launch a $617 million IDICE Fund in collaboration with the African Development Bank (AfDB) for youth empowerment and employment opportunities.

ConsumerConnect learnt in preparation for the imminent event, Musawa engaged with Mr. Lamin Barrow, Director General of AfDB, in a high-level meeting held Thursday, February 1, 2024, in Abuja, FCT.

She also highlighted the huge potential of the Creative Economy to generate employment opportunities for millions of young Nigerians.

The Minister stated: “With eager anticipation from the creative community, the IDICE fund emerges as a landmark transaction, providing a strategic platform for directing additional long-term financing into this dynamic sector.”

Musawa equally said: “We are delighted that the conditions precedent for the release of IDICE funds are nearing completion. We eagerly anticipate providing start-up funds to young creatives, facilitating the development and monetisation of their talents.”

Commendation for AfDB in Nigeria

In reckoning the commitment of the continental lender to the development of Nigeria, Musawa commended the AfDB and other parties to the transaction for the remarkable achievement, now being emulated by other African countries.

The Minister particularly, applauded the impact investment focus, including elements such as geographical spread, first loss position of the FGN and grants for capacity development.

She further stressed that FMACCE would reflect this spirit in its nationwide awareness campaign on the initiative.

Minister Musawa highlighted that the IDICE structure offers a platform through which the fundraising initiatives of her Ministry can be secured and assured that this opportunity will be thoroughly explored.

As regards the objective of IDICE, Musawa stated: “Nigeria, having solidified its position as a global hub for music, film and visual art, is strategically positioning itself to leverage the IDICE funds.

“This move aims to consolidate its global standing and propel further expansion within the creative industry, in subsectors such as Design, Gaming, Content Creation, Animation, Culinary Arts, and Publishing,” she noted.

This transformative fund is poised to unleash unparalleled growth, with the potential to catalyse over $1 billion of growth in the creative economy upon full deployment.

According to the Minister, Barrow as the AFDB Chief, is an integral part of the collaborative effort, who provided insight into the fund structure.

Musawa disclosed IDICE is built around a world-class governance framework, incorporating a Steering Committee that includes her.

The Minister said: “AfDB has appointed the Bank of Industry as the executing agency to manage program implementation, reporting directly to the steering committee.

“The initiative is set to forge strategic partnerships with selected Universities and Polytechnics, major technology companies and key players in the private sector.”

Speaking during the meeting with Musawa while acknowledging the eagerness of the creative community, Barrow also submitted: “The youth are understandably impatient. Since the approval of IDICE, we receive daily inquiries about the launch. While the processes are intricate, we are on the verge of the roll-out phase.”

About IDICE

IDICE is an initiative spearheaded by the Federal Government of Nigeria, aims to foster entrepreneurship and innovation in digital technology and creative industries.

It addresses the challenges of access to risk capital and innovation ecosystem capacity faced by start-ups.

The funding initiative comprises two major components: the intervention fund, a $147M fund supporting enterprise and skills development, and the sectoral fund, a $433M fund divided into three categories:

Creative Fund: Equity or quasi-equity to startups and SMEs in the creative sector.

Tech Fund: Equity or quasi-equity to innovative early-stage and growth-stage start-ups.

Fund of Funds: Participations in closed-end Venture Capital Funds or Creative Business-focused funds.

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