Nigeria and its Creative Industry
The Nigerian Creative Industry stands as one of the country’s fastest-growing Industries. Noted for its massive 2.3% contribution to the Nigerian GDP, the Industry has drawn some attention from the Government and top personnel.
Now, if you are a fashion designer and you are looking to own your business or grow an existing business, then understanding how the Government can help you is essential.
The Central Bank of Nigeria started an initiative with the bankers’ committee called Creative Industry Financing Initiative (CIFI) where they fund creatives. It gets interesting. The CIFI was created to bring your dreams to life and also create an avenue for job creation through entrepreneurs. It is deliberate in bringing out the potential of the youth in the creative Industry.
The Initiative is designed to give all fashion designers in the Nigerian creative industry access to long-term, low-cost financing to boost job creation in Nigeria, particularly among the youth. Long-term, low-cost financing means that the CBN would give a long period to repay the loan say 5-10 years depending on what you want, and also the interest rate would be relatively low.
As a Fashion Designer, you are entitled to the CIFI once you prove:
• A start-up engaged in fashion
• An existing fashion business in the creative Industry.
The CBN will not give this loan in monetary terms, but through monetization financing, i.e. the money would not be handed to you but directed towards the equipment required, and they would pay the rental/service fees. You would start paying back the loans 36 months from the date the loan is given out. This means it would take you 3years to begin paying back the loan repaid quarterly. The tenor of the loan would last for a period of ten years, and after ten years, you are supposed to have completed the loan payment. The interest rate of the loan is 9% per annum (all-inclusive). When paying back this loan, you are not to bring funds from any other source than the business. The repayment source should be only from the proceeds of the company.
Undoubtedly, the CBN understands the potential of this market and has chosen to support as much as it can. Its seemingly obvious that young Nigerians are trooping into the Industry, and this Initiative is a great way to boost engagement among youths in the country. Do not be left out. Make time to visit your local bank to find out more details.