Nigeria has officially taken a bold step toward unlocking the vast potential of its creative sector. The Ministry of Arts, Culture, and Creative Economy recently signed a landmark Memorandum of Understanding (MoU) to introduce Intellectual Property (IP) securitisation in the country. This groundbreaking move, driven by a highly passionate minister, aims to inspire Nigerian youth to rely on their creative talents and skills to develop innovative solutions for societal challenges.

Understanding IP Securitisation and Its Economic Promise

To begin with, securitisation refers to the process of pooling intangible assets—such as copyrights, trademarks, or future royalties—and converting them into financial instruments that investors can purchase. Within Nigeria’s creative sector, IP securitisation offers a transformative opportunity. Crucially, it allows artists and creators to retain ownership of their rights while leveraging them as collateral through a Special Purpose Vehicle (SPV) that facilitates the entire transaction.

Moreover, this process involves pledging expected royalties even before the creative product is released. This means artists can secure funding upfront, based on projected earnings. Several critical actors play unique roles in this model:

• The Originator (creator or rights owner) contributes the IP asset.

• The SPV temporarily holds the rights and oversees the securitisation process for transparency.

• Investors inject funds into the SPV in exchange for future returns.

• Service Providers manage operations and ensure timely payments.

• Rating Agencies evaluate the risk involved in the transaction.

• Credit Enhancers (such as insurers) safeguard the investment.

As a result, this ecosystem naturally pulls together a wide range of professionals—legal experts, financial advisors, project managers, and artists—creating new employment opportunities and boosting economic activity.

Real-World Success Stories Highlight Its Viability

Globally, IP securitisation has already proven effective. For instance, back in 1997, music legend David Bowie famously raised $55 million through future royalty-backed bonds, now known as Bowie Bonds. Similarly, in 1999, the sports industry witnessed a massive $1.4 billion securitisation deal.

Fast forward to 2025, Afreximbank extended a €245 million credit facility to New World TV, a Togolese broadcaster, to support their acquisition of exclusive sports media rights across 24 African countries. Additionally, Mediwood Studios in Tunisia secured $3 million, backed by future IP revenues, to expand film production. These examples clearly show how creative IP, when properly structured, can become a powerful financial asset.

Undoubtedly, Nigeria’s creative ecosystem can benefit in similar ways. Take, for example, the Ojude Oba Festival, which showcases Nigeria’s rich cultural heritage through elaborate fashion, artistic displays, and vibrant performances. If harnessed properly, these cultural expressions can generate immense value—not just socially but economically.

Why This Matters for Artists and the Broader Economy

Traditionally, many Nigerian artists have had to sell personal belongings or seek informal loans just to fund their projects. Banks, which usually require tangible collateral, often turn away creatives. However, IP securitisation changes that narrative completely. Now, creators can access funding without giving up ownership or going into debt over physical assets.

Consequently, as more productions get funded, the entire value chain—set designers, makeup artists, producers, marketers, and more—will experience growth. Not only does this stimulate job creation, but it also strengthens ancillary sectors such as tourism, media, and fashion.

Furthermore, the government stands to benefit through increased tax revenues, levies, and service-related earnings. With effective implementation, this model could significantly reduce youth unemployment, foster entrepreneurship, and boost national GDP.

Creating the Right Environment for Securitisation

However, for this system to succeed, both the legal and financial frameworks must align. First and foremost, asset valuation must become a priority. Only when IP assets are properly valued can creators confidently access funding.

Equally important, laws must protect the rights of every party involved—from originators to investors. Clear policies must define ownership, obligations, risk-sharing, and dispute resolution. By building this legal infrastructure, Nigeria will lay a solid foundation for long-term success in the creative financing space.

Additionally, the government must incentivise financial institutions and insurers to support IP-backed investments. This includes encouraging banks to develop tailored products for creatives and asking insurance companies to cover associated risks. With the right policies, Nigeria can nurture a thriving IP securitisation market that benefits everyone—from entertainers to financiers.

A Call to Action for Growth and Innovation

Undoubtedly, Nigeria’s creative economy holds immense untapped potential. By embracing IP securitisation, the country positions itself to lead Africa in creative innovation and cultural monetisation. Rather than viewing creativity as mere entertainment, we must now treat it as a core economic engine.

Therefore, the government must continue to lead with urgency and vision. Policymakers must streamline processes, eliminate red tape, and create awareness among creatives and investors alike. Likewise, stakeholders in the legal, financial, and entertainment industries must collaborate to develop scalable models for securitisation that are both inclusive and sustainable.

Conclusion: Turning Creativity into Capital

In conclusion, IP securitisation offers a strategic path to transform Nigeria’s creative sector into a robust economic powerhouse. It provides artists with access to funding, creates jobs, expands tax revenue, and invites global investors into the nation’s cultural space.

By aligning legal protections with financial innovation, Nigeria can redefine the role of creativity in national development. Indeed, the time has come for the law and the economy to converge—for the benefit of not just artists, but the nation as a whole.

With the right support, Nigeria’s talents can shine brighter than ever—and finally earn the value their creativity deserves.