FG’s N1.5bn for Nigeria’s Movie Industry promises a lifeline for creatives

The Bola Tinubu administration has vowed to support the creative industry, and the promise has gone beyond mere rhetoric. Giving teeth to his promise to chart a new course for the creative industry in line with his Renewed Hope Agenda, President Tinubu injected N1.5 billion into the Nigerian movie industry in June.

This lifeline is unprecedented and is part of the N5 billion Creative Fund established in collaboration with Providus Bank in December 2023, which is projected to deepen the growth and development of the creative sector.
Recall that first disbursement of the Creative Fund commenced in May 2024, with a total of N1.5 billion given to four actors and producers.
Fegho Umunubo, the Special Assistant to the President on Digital and Creative Economy, shared this development on social media. He urged creatives seeking financial support to contact Providus Bank via email.
“Update: N5 billion Creative Fund Second Batch Launch. Under the renewed Hope Agenda of Mr. President Bola Tinubu (GCFR), we successfully launched the second batch of the N5 billion Creative Fund in partnership with Providus Bank at Eko Hotels and Suites.
“Following the successful disbursement of N1.5 billion to four actors/producers for their movie projects, we are excited to support even more creative projects. If you know someone seeking funding for their creative project, share this email address: creatives@providusbank.com,” his post read.
At the premiere of Tiwa Savage’s “Water and Garri” at the Livesport Event Center in Lekki, Lagos, in May, Mr. Umunubo said that the partnership was set up to surmount the challenges of traditional bank collateral prerequisites by providing a more favourable and accessible funding model for film industry creators.
Contrary to expectations, the funds are not free cake, as recipients are expected to return 30 per cent of their film’s proceeds to the bank. Mr. Umunubo expressed hope about the new synergy despite previous futile attempts, highlighting how past beneficiaries used loans meant for film production to acquire movable property.
The Tinubu administration is not the first to mull and work on financial support for creative industry. One recalls in 2010, President Goodluck Jonathan made a pledge of $200 million grant for the nation’s entertainment industry during the 30th anniversary of Silverbird Organisation. The President implored entertainment stakeholders to utilize the funding to come up with high-quality music and movies that would generate employment opportunities while bringing pride to the country.
The funds were in the care of the Bank of Industry (BoI) for future disbursement to artists with feasible business plans.
Emeka Ossai, a renowned Nollywood actor, said in 2014 that he could access funding from the BoI by presenting a viable business plan.
But in a twist, in August 2015, The Bank of Industry (BoI) issued a disclaimer , disassociating itself from the $200 million Nollywood support funds under the Jonathan administration.
The bank made clarification that it had been giving finance to Nollywood from its resources and was not involved with the $200 million support package.
In an attempt to further more support for the creatives, the federal government is set to collaborate with the African Development Bank (AfDB) on a $617 million IDICE Fund. This fund targets the digital technology and creative sectors, aiming to drive socio-economic progress and position Nigeria as a leader in the global digital economy. The iDICE programme, supported by the Islamic Development Bank (IsDB), Bank of Industry (BOI), and AfDB, will span five years.
The government has also beefed up financial assistance to fashion startups, providing between N2-5 million per business in Enugu and Jigawa states. Initiated in May 2024, this support is targeted towards helping fashion trainees who have completed their programs to scale their businesses.
Also a $3 million international investment has been secured for creative industry training in partnership with French companies, aimed at training Nigerian creatives with globally competitive skills. The NaijabrandChick Trade Fair has received N1 million per business for three enterprises showcasing Nigerian culture and creativity online.
The National Bureau of Statistics (NBS) compartmentalizes Nigeria’s creative sector into five sub-sectors: Media and Entertainment, Beauty and Lifestyle, Visual Arts, and Tourism and Hospitality.
Recent report says the sector employs around 4.2 million people, as projections suggest that the creative industry could create an additional 2.7 million jobs within the next four to five years.
According to Mustard Insights, the Nigerian creative economy is expected to reach a valuation of $15 billion by 2025, with the movie industry alone valued at $6.4 billion.
A professor of French and literary scholar, David Fiki, in a chat with Business Hallmark, noted that “the funds if well utilized will make a difference in the creative industry, it can create more jobs, and through right utilisation further register Nigerian culture in international arena more than before.”
Ibidun Anjorin, doctoral student of African post-colonial culture, told this medium that “The administration has done well in giving this funds, the creative industry has potential for increasing GDP through exportation of our music and films. I know for certain that Nollywood is popular across African countries and across the world.”
Otunba Adejumo Adeyemi of Kings Pat Films, Lagos, told this medium “At least, this is a big lifeline for the creative industry, and we commend the Tinubu administration for this initiative. It’s left for us to apply for it, and if granted utilize the funds well. It will help the industry.