Earlier this month, the Federal Ministry of Art, Culture, Tourism, and Creative Economy unveiled an ambitious funding initiative through the Creative Economy Development Fund (CEDF). This strategic national investment aims to harness the immense potential of Nigeria’s vibrant creative sector, thereby positioning it as a pivotal driver for economic growth and vehicle for cultural diplomacy on a global scale.

The minister, Hannatu Musa Musawa, emphasised that the CEDF is not just a financial support scheme; it is a comprehensive strategy designed to unlock and enhance Nigeria’s creative capabilities. The fund offers tailored financial assistance through a mix of debt financing, equity investments, and grant funding aimed at promoting innovation and elevating Nigeria’s creative assets, cultural projects, as well as tourism-related enterprises to an international audience.

The core purpose of CEDF is to empower creative businesses across various sectors by providing essential capital needed to scale their operations, expand market access, and build resilience against economic challenges. Through this initiative, creators will be able to leverage their intellectual property — such as film rights, music catalogues, digital content, and other creative works—as a financial asset. This strategy effectively unlocks previously untapped value within the creative industry.

The first call for proposals is currently open and will remain so until May 30, 2025, specifically prioritising mature projects that are seeking funding of over $100,000. Following this, the second phase will open on August 4, 2025, targeting Micro Small and Medium Enterprises (MSMEs) and Small and Medium Enterprises (SMEs) that are looking for amounts under $100,000.

For Phase One, important timelines are set from June to December 2025 for application reviews, project onboarding, incubation, and acceleration, with funds expected to be disbursed starting on January 1, 2026. Meanwhile, for Phase Two, disbursements are scheduled to begin on April 1, 2026.

The Creative Economy Development Fund is inclusive, welcoming applications from a wide range of individuals, businesses, and institutions who are active within the creative and cultural economy. This includes, but is not limited to, writers, directors, artists, fashion designers, gaming studios, cultural tourism providers, training institutions, promoters, legal consultants, media agencies, digital platforms, and logistics companies.

Applications will undergo a thorough assessment process led by independent professionals and overseen by an investment committee comprised of private sector experts. The CEDF is structured as an independent investment fund with professional management, wherein the Ministry of Finance Incorporated is designated as the anchor shareholder. Furthermore, interested investors and development partners are encouraged to engage with the fund to explore co-investment opportunities or participation in specific sub-funds.

Despite the promise of this initiative, there are concerns among stakeholders that the funding structure may lack the robustness required to effectively meet the diverse needs of the creative sector, as has been witnessed in previous funding schemes.

The Guardian visited the local art community to assess whether artists were cognizant of the significant benefits that the proposed loan scheme could offer for advancing their careers.

In discussions with a variety of artists, a sense of optimism was evident among some, who felt that the financial support could provide them with the resources needed to elevate their work and reach broader audiences.

However, a considerable number of artists voiced their scepticism regarding the loan’s potential impact. They expressed concerns that, despite the promising concept, it might ultimately serve as just another well-intentioned initiative that fails to reach and benefit grassroots artists.

A performance poet and filmmaker based in Abuja, Chidubem Kalu, accentuated the need for greater awareness regarding the loan scheme designed for artists. He said, “while I’m not fully aware of the details, I believe enhanced communication about the program is essential. Reflecting on the government’s 2014 grants for artists, it’s clear that the distribution process needs to be more efficient to ensure that the funds reach those who truly require support. The concept is promising, but its execution must genuinely address the needs of grassroots artists.”

A songwriter and performing artist, Amina Hawal, expressed her optimism about the loan scheme, urging fellow artists to adopt an open-minded perspective rather than jumping to criticize it. “Every successful project has, at some stage, been supported by loans. Embracing this initiative can lead to valuable opportunities for growth,” she said.

The visual artist Helen Nzete responded positively to the ministry’s introduction of the Creative Economy Development Loan, viewing it as a potential game changer for artists who have often been overlooked in national economic strategies.

She elaborated that, for a sector fueled by passion yet constrained by financial limitations, this initiative could provide much more than monetary support. It could offer recognition, structure, and opportunities for growth, placing visual arts at the forefront of Nigeria’s creative landscape.

Nzete emphasised, “if this initiative is tailored with artists in mind — featuring low interest rates, minimal collateral, and user-friendly application processes — it could genuinely formalize artistic practices, enhance financial independence, and promote sustainability. When combined with potential training and visibility support, this loan could transform from a temporary aid into a powerful catalyst for change. The ultimate impact will hinge on the specifics, but for now, there is a renewed sense of hope within the creative economy.”

In response to the loan scheme, Secretary General of the Society of Nigerian Artists, Mr. Rowland Goyet, expressed strong support for expanding access to loan facilities, emphasising their crucial role in empowering artists to flourish as sustainable startups.

According to him, “artists require substantial resources for various aspects of their work, from acquiring essential tools and materials to setting up studios, participating in exhibitions, and engaging in digital outreach. The creative journey is both visionary and financially demanding. Without structured access to affordable credit, many talented artists may find themselves limited to subsistence operations, unable to expand their practices or effectively compete in both national and global art markets.”

Goyet commended the leadership of Musawa for the timely establishment of CEDF and urged collaboration with key stakeholders to ensure that visual artists have a meaningful voice in the disbursement processes.

“We view the CEDF as a vital opportunity to advance the economic empowerment of artists nationwide. It is essential that we continue to develop the CEDF and explore additional creative financing initiatives that have yet to be fully utilised by our community. We encourage our members across the country to formalize their practices by incorporating their businesses and preparing professional profiles to enhance their candidacy for loan access under the fund,” he noted.

The Director General of the National Gallery of Art (NGA), Ahmed Sodangi, shared insights on the agency’s commitment to bridging the financial gap for artists by enhancing their financial literacy, improving documentation practices, and building their capacity to effectively engage with various funding models.

He stated, “We are in the process of developing a financial framework specifically designed for artists. This initiative will focus on educating them about the distinctions between debt, equity, and grant financing, as well as the importance of cash flow, repayment plans, and market positioning. Our aim is to create an enabling environment where artists not only gain the ability to access funds but are also equipped to manage and repay them, ensuring lasting financial sustainability.”