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CBN sets $10.7b growth target for creative industry

After announcing the injection of N22 billion seed capital into the creative industry, the Central Bank of Nigeria (CBN) on Monday gave the movie production and distribution a $10.7 billion growth target in the next five years.
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CBN Governor Godwin Emefiele who broke the news yesterday at the Creative Nigeria Summit in Lagos with theme: “Finance for Growth”, said the intervention of the apex bank in the music and movie industry would be in the areas of support to young entrepreneurs in the development of digital content.

The project is also expected to create over 500,000 direct and indirect jobs.

Emefiele said the measures, billed to be implemented over a five-year period, would increase the contribution of the movie industry to Gross Domestic Product (GDP), from one to three per cent.

It would also result in improved revenue generation of over $300 million from production and distribution of Nigerian movies at cinema locations at home and abroad, as well as the creation of over 200,000 direct and indirect jobs.

He said the CBN and the Bankers Committee had set up the Creative Industries and Financing Initiative (CIFI). Using the Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS) fund, through which the banks set aside, on an annual basis, five per cent of their Profit After Tax (PAT), to support startups and existing businesses in the creative industry space.

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The plans also cover the development of a creative industry park in three major cities in the country.

The CBN boss said: With the kind support of the Federal and Lagos governments, the National Theatre, Iganmu, Lagos, is expected to serve as the initial pilot for the Creative Industries Park.

“Our plan is to develop a 40- acre Creative Industry Park around the National Theatre including giving the Theater itself tremendous face lift; thereby reopening the touring potential the National Theatre 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.”

Besides, Emefiele noted that individuals would have the opportunity to showcase their work at the park, which will expose them to domestic and external investors that can provide them with additional resources that will enable further production and expansion of their creative works.

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He said that a critical aspect of the park would be devoted to supporting the growth of the Nigeria’s fashion industry.

Emefiele said: “The textile, apparel and footwear sub-sector remain the second largest contributor to Nigeria’s manufacturing (after food, beverage and tobacco) sector. Total output in fourth quarter of 2017 was estimated at $1.3 billion or 23.3 per cent of manufacturing GDP. Sadly today, Nigeria spends over $2 billion on imported textiles, including machine-made cloths imported from Asia which copy popular Nigerian designs. This action has taken place despite the abundant talents in the fashion industry in Nigeria, some of whom are gaining prominence both locally and internationally,” he said.

He said the initiative will also help to support the growth of the cotton and textile industry by off taking on the products being produced in textile mills in Kano, Kaduna and Lagos.

“Over the next five years, the park will help support 10,000 young Nigerians with improved design skills, while creating over 100,000 direct and indirect jobs in the Cotton, Textile and Garment (CTG) industry. The Shared Service Facility will also serve as a showroom to the world on quality fabrics being designed and produced in Nigeria,” he said.

Emefiele said that over 50,000 Nigerians would benefit from this ICT centre, which will create over 25,000 software engineers and 150,000 skilled and unskilled jobs. He added that it could result in potential GDP gains of close to $2 billion while curbing importation of IT solutions that can be produced in Nigeria.