CBN leads search for forex goldmine in creative industry

Nigeria’s foreign exchange (forex) earnings have dropped in recent years as crude oil prices dipped. But the creative industry is emerging as alternative to crude in Nigeria’s forex earnings.

With the growing demand for Nigerian music, movies and fashion, across Africa and in various parts of the globe, Nigeria has the potential to earn over $20 billion annually from the creative industry.

The Central Bank of Nigeria (CBN) is through the Creative Industry Financing Initiative (CIFI) scheme and other youth-oriented programmes instituting structures to enhance the industry’s capability to earn forex and create jobs for the youths, writes COLLINS NWEZE.

Nigeria’s creative industry, which comprises the music, movie, fashion and IT industries are beginning to emerge as a key source of wealth and job creation in Nigeria.

Across Africa and in various parts of the globe, Nigeria’s creative industries are spurring innovation, creating jobs, increasing our export revenues and helping to shape perceptions on Nigeria as a nation with a strong spirit of creativity and ingenuity.

Not surprisingly, many people have shared fond memories visiting barber stores in European countries and the music being played to the delight of customers were Tiwa Savage, Flavour, and Burna Boy.

There have also been several cases where Davido and WhizKid’s songs are being played in malls outside Nigeria. The same goes for Nigerian movies, which today dominates the homes and movie theatres in different parts of the world.

It was the need to do more to encourage the innovative work of these and other young talented Nigerians that prompted the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, to support the creative industry as it could significantly contribute to the foreign exchange earnings, growth and development of the country.

This is because after oil, entertainment has turned out to be Nigeria’s major export and source of foreign exchange earnings. Besides, it is one of the topmost sectors creating jobs for millions of youths and building positive image for the nation.

With the crude oil volatility at the global oil market, countries with foresight are now exploring forex earning opportunities in other sectors. India, for example, generates over $240 billion annually from exports of IT, movies, music and fashion related goods and services.

For Nigeria,  the creative industry, dominated by music, fashion, movies and IT hubs are attracting new funding from the Central Bank of Nigeria (CBN) under the Creative Industry Financing Initiative (CIFI) scheme.

The CBN has, through the CIFI scheme, encouraged banks to play more prominent roles by ensuring that the creative industry not only gets funding, but also the right capacity that promotes creativity.

For instance, the ongoing remodeling of the National Arts Theatre under the ‘Lagos Creative and Entertainment Centre’ is one of such supports. The N21.3 billion remodeling project initiated by the CBN-led Bankers’ Committee will house the fashion, music, movies and IT hubs. It will boost the creative and IT sectors in the areas of job creation, capacity building and forex revenue generation.

Across Africa and in various parts of the globe, the Nigerian creative industries are well respected. The project remodeling will come in two phases. The first phase of the project will require the restoration of key component parts of the edifice built in 1976 to ensure that the functionality of this iconic building is reinstated. The restored National Theatre will serve as the focus of a new creative and entertainment centre.

The CIFI goal is to support startups and existing businesses across these four pillars as well as foster the development of a Nigeria Creative Industries Centre in major cities in Nigeria. Towards the realization of this objective, the Bankers Committee intends to support this creative venture with about N25 billion of initial funding.

The National Theatre Iganmu, Lagos is expected to serve as the initial pilot for the Nigeria Creative Industries Centre. Following the completion of the renovation works at the National Theatre, along with the supporting facilities that will be built around it, which includes a hotel and an expansive conference centre, the CBN intend to set up similar creative industry centres in Kano, Port Harcourt or Enugu.

Already, the scope of work at the National Arts Theatre will include the upgrade of the theatres (the Main Hall and Cinema Halls), the Conference and Banquet Halls, the Press Hall and Bar. Work to be executed also includes the installation of new seats, upgrade of sanitary facilities, installation of new lifts, acoustics and specialist lightings. The air-conditioning, general lighting, other power and plumbing will also be replaced or upgraded to international standards.

The second phase, Emefiele said, entails the creation of a detailed master plan for the site adjourning the National Theatre, for the development of purpose-built clusters to provide best-in-class facilities for Nigeria’s Creative Industry (deemed the fastest growing in the world). The new centre will comprise hubs for the Fashion Industry, Music and Film Industries as well as an Information Technology (IT) hub.

Speaking during the signing of Memorandum of Understanding (MoU) for the handing over of the National Arts Theatre to the Bankers’ Committee by the Federal Government, in Lagos, Emefiele said the project would restore the glory of an iconic building by aligning most of the fabric and equipment and facilities in the building with the aesthetics of the 21st Century.

He said the Bankers’ Committee would equally be funding a prototype cluster located to the north of the National Arts Theatre, labelled the “Signature Cluster” consisting of a building each for music, film, fashion and Information Technology verticals.

Lagos State Governor Babajide Sanwo-Olu said the project was an opportunity to write Nigeria’s name in gold for the future generation. “The project showed that when private and public enterprises partner, there is nothing that cannot be achieved,” he said.

Minister of Information and Culture Lai Mohammed said the National Theatre remodeling project was approved by the Federal Executive Council. He said for the Federal Government, the project was a win-win situation with several thousands of jobs to be created and investment opportunities for the economy.

Minister of Youth and Sports Sunday Dare said the project would make huge impact in the development of the creative industry and support Nigeria’s economic development.

He said the restoration and refurbishment of the National Arts Theatre would provide jobs for over 25,000 to 30,000 people.

He said the aim was to deliver a successful creative and entertainment city that will encourage additional investment into Nigeria’s creative industry.

A portion of the site has been earmarked for the construction of the “Signature Cluster”, which consists of one building each for Fashion, Music, Film and IT.

Emefiele said building a hub around the theatre will benefit the youths that want to do fashion, movie, information technology, and entertainment industry.

He said: “I can imagine what this place will look like in another two years. Every weekend, if there will be something happening, it will boost the tourism potential of Lagos State and Nigeria. Nigerians go out to different seminars.”

Sanwo-Olu said the team had worked around the entire land area of the National Arts Theatre and had appreciated the extent of the asset conceived as a non-earning asset.

The Chairman of Body of Banks CEOs, Herbert Wigwe, said the project was in line with the Federal Government’s vision of lifting 100 million people out of poverty.  He said the creative village would provide employment for at least a million Nigerians, who have skills in music, IT, movies, among others.

Wigwe, who is also the Group Managing Director/CEO of Access Bank Plc, said the group is working with a body called Shared Agent Network Expansion Facility (SANEF), which is an institution that holds the interest of the entire banking.

How it all started/project phases

The National Theatre complex was identified as a viable location for the proposed city and is to house the fashion, music, movies and IT hubs. The master plan implementation consists of the development of the signature cluster, which consists of a building each for fashion, music, film and IT to be built alongside support facilities including multi-storey parking to accommodate an additional 500 cars (the National Theatre currently has dedicated parking for 250 cars), a police station, a fire station and a visitors’ Welcome Centre which will house commercial and retail facilities, administration and management offices amongst others.

According to the project managers, both phases will be connected by carefully curated soft and hard landscape areas as well as waterways, providing excellent semi and outdoor spaces for community use and entertainment, including an amphitheatre.

An economist and Managing Director, Rockview Services Limited, Michael Stevens, explained that given Nigeria’s dependence on crude oil as a major source of government revenue, as well as for its forex earnings, the challenges created by COVID-19 have served to reinforce the need for stakeholders to promote policies and programmes that will enable greater diversification of the Nigerian economy.

Stevens said a diversified economy that supports increased productivity in the agriculture and manufacturing sectors while harnessing the talents of the youths in the creative industries will lead to the buildup of a more resilient economy that is better able to withstand external shocks, while creating wealth and jobs for the growing population.

Revenue potential

The Creative Center, which comprises music, movies, fashion and ICT can be a key source of growth for the economy, creating up to one million jobs for our teaming youths. It will also aid Nigeria’s objective of reducing its dependence on revenues from crude oil.

Emefiele said that with Nigeria’s human capital resources and an enabling environment that will help harness the creative talents of our youths, Nigeria has the potential to earn over $20 billion annually from the creative industry.

With the growing demand for Nigerian music, movies and fashion, across Africa and in various parts of the globe, our creative industries, are spurring innovation, creating jobs, and helping to shape perceptions of Nigeria, as a nation with a strong spirit of creativity and ingenuity.

“We must do more to encourage the innovative works of these young talented Nigerians as they can make significant contributions to the growth and development of our country,” he said.

Second, given Nigeria’s growing population of over 200 million people, out of which 60 per cent are under the age of 35, it is imperative that the country strives to create opportunities that will keep its youths engaged, as it would portend great dangers for the progress of our nation if we allow these talents go to waste.

The National Theatre goal is to create an environment where startups and existing businesses are rewarded for their creativity. The National Theatre when fully renovated will be able to support skills acquisition and job creation for over one million Nigerians over the next five years. These Nigerians will be empowered with funds at single digits interest rate, high level training using state-of-the-art tools, and networks that will enable them to turn their ideas into a reality. When they are able to achieve their objective of creating a new music product, a high-quality movie, an IT software application or a fashionable outfit, the bankers committee will work to ensure that they are able to distribute their work on a larger scale.

Furthermore, individuals will have the opportunity to showcase their work at the creative industries centre, which will expose them to domestic and external investors that can provide them with additional resources, which would enable production and expansion of their creative works. The supporting facilities such as retail outlets, hotels, entertainment centres, and an international conference centre will also help to reposition the centre as a viable location for high level international meetings and conventions.