Federal Govt Launches $617 Million IDICE Fund to Boost Nigerian Creative Industry
The Investment in Digital and Creative Enterprises (IDICE) fund is a transformative initiative spearheaded by the Federal Government of Nigeria through the Minister of Art, Culture, and Creative Economy, Hannatu Musawa, in partnership with the African Development Bank (AfDB). The IDICE fund, amounting to $617 million, is set to revolutionize the Nigerian creative industry, with the potential to catalyze over $1 billion in the creative economy upon full deployment.
IDICE 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 fund comprises two major components: the intervention fund, a $147 million fund supporting enterprise and skills development, and the sectoral fund, a $433 million fund divided into three categories: Creative Fund, Tech Fund, and Fund of Funds.
The Creative Fund provides equity or quasi-equity to startups and SMEs in the creative sector, including subsectors such as Design, Gaming, Content Creation, Animation, Culinary Arts, and Publishing. The Tech Fund provides equity or quasi-equity to innovative early-stage and growth-stage start-ups. The Fund of Funds provides participations in closed-end Venture Capital Funds or Creative Business-focused funds.
During a meeting with the Director General of AfDB, Mr. Lamin Barrow, Minister Musawa emphasized the vast potential of the Creative Economy to generate employment opportunities for millions of young Nigerians. The IDICE fund emerges as a landmark transaction, providing a strategic platform for directing additional long-term financing into this dynamic sector.
The IDICE structure offers a platform through which the fundraising initiatives of the Ministry of Art, Culture, and Creative Economy can be secured. 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.
The IDICE fund stands as a beacon, promising to unlock the full potential of the nation’s vibrant creative economy. The initiative is set to forge strategic partnerships with selected Universities and Polytechnics, major technology companies, and key players in the private sector. Mr. Barrow, an integral part of the collaborative effort, provided insight into the fund structure, emphasizing that IDICE is built around a world-class governance framework.
Acknowledging the eagerness of the creative community, Barrow stated, “The youth are understandably impatient. Since the approval of IDICE, we have received daily inquiries about the launch. While the processes are intricate, we are on the verge of the roll-out phase.” Minister Musawa expressed her enthusiasm and commended AfDB and other parties involved for the remarkable achievement, which is now being emulated by other African nations.
In conclusion, the IDICE fund is a strategic investment aimed at unlocking the full potential of Nigeria’s creative economy. It provides a platform for directing additional long-term financing into the dynamic sector and fostering entrepreneurship and innovation in digital technology and creative industries. The IDICE structure offers a platform through which the fundraising initiatives of the Ministry of Art, Culture, and Creative Economy can be secured. It is set to forge strategic partnerships with selected Universities and Polytechnics, major technology companies, and key players in the private sector.