ArtistDirect News
Nigeria Unveils IP-Based Capital Framework to Propel Music Industry Growth
During the 2026 Africa Music Business Roundtable in Lagos, Obi Asika, director‑general of the National Council for Arts and Culture (NCAC), unveiled a new intellectual‑property framework that will allow Nigerian artists and creative startups to pledge their ideas and catalogues as collateral for venture capital, private equity and pension‑fund investment.
The framework departs from the old model that tied credit to physical assets such as land or equipment. Asika explained that the new rules will enable banks and non‑bank lenders to finance creators using only intangible assets, a change he described as the industry’s ‘single biggest unlock for capital formation.’
Until now, musicians and creative entrepreneurs in Nigeria have struggled to secure funding because collateral options were limited to physical property. The new framework expands the pool of potential lenders to include pension funds that seek long‑term, patient capital, thereby broadening financing avenues for the sector.
Alongside the collateral rules, Asika announced a suite of institutional reforms aimed at professionalising the music industry. He introduced the Nigerian Business Council for the music industry, a 100 % private‑sector‑controlled body modeled after the U.S. Recording Industry Association of America and the UK’s music industry associations, with the government acting only as a convener. He also outlined plans for a National Centre of Excellence for Music, offering undergraduate and graduate programmes in music, musicology, history and preservation, and for a national museum that would document history, host a hall of fame and support awards, providing a physical space to celebrate and preserve Nigeria’s cultural legacy.
International partnerships are a cornerstone of the strategy. Asika chairs the Nigerian side of the Creative Industries Technical Working Group under the UK‑Nigeria Enhanced Trade Partnership, which will launch a six‑month ‘Season of Culture’ in 2028 covering music, movies, fashion, animation, gaming, literature, visual arts and culinary arts across ten Nigerian states and ten UK cities. The British Council will issue requests for proposals in the coming months, building on the UK’s Black Music Business Report that found 80 % of UK music revenue over the last 25 years came from Black music. In the United States, Asika has worked with the Recording Industry Association of America and Universal Music Group, highlighting collaborations with Mavin Records, Universal’s West Africa partner, and noting the company’s expanding presence in Nigeria. Additional links include a partnership with France through Make Music Lagos and an EU initiative on workforce mobility for creatives, enabling Nigerian talent to travel and earn across Europe.
The National Licensing Agency and Discover Nigeria platform are also part of the institutional infrastructure, and Asika said these bodies will be incubated with strong private‑sector leadership.
Implementing the IP collateral rules will require coordination with banks and other financial institutions. Asika expressed confidence that venture capital and patient capital will follow once the framework becomes fully operational.
The combination of new institutions, reformed financing mechanisms, and global partnerships is expected to boost the creative economy’s contribution to national development. By moving beyond short‑term streaming revenue to structured, investable assets and institutions, the framework aims to generate long‑term value for Nigerian artists and the broader creative sector. The policy shift aligns with broader efforts to elevate Nigeria’s creative sector on the global stage. The announcement, made during the Africa Music Business Roundtable, underscored the growing importance of intellectual property as a source of capital in the African creative economy and marked a significant policy shift that positions Nigeria to better harness its creative talent and attract international investment.
The framework departs from the old model that tied credit to physical assets such as land or equipment. Asika explained that the new rules will enable banks and non‑bank lenders to finance creators using only intangible assets, a change he described as the industry’s ‘single biggest unlock for capital formation.’
Until now, musicians and creative entrepreneurs in Nigeria have struggled to secure funding because collateral options were limited to physical property. The new framework expands the pool of potential lenders to include pension funds that seek long‑term, patient capital, thereby broadening financing avenues for the sector.
Alongside the collateral rules, Asika announced a suite of institutional reforms aimed at professionalising the music industry. He introduced the Nigerian Business Council for the music industry, a 100 % private‑sector‑controlled body modeled after the U.S. Recording Industry Association of America and the UK’s music industry associations, with the government acting only as a convener. He also outlined plans for a National Centre of Excellence for Music, offering undergraduate and graduate programmes in music, musicology, history and preservation, and for a national museum that would document history, host a hall of fame and support awards, providing a physical space to celebrate and preserve Nigeria’s cultural legacy.
International partnerships are a cornerstone of the strategy. Asika chairs the Nigerian side of the Creative Industries Technical Working Group under the UK‑Nigeria Enhanced Trade Partnership, which will launch a six‑month ‘Season of Culture’ in 2028 covering music, movies, fashion, animation, gaming, literature, visual arts and culinary arts across ten Nigerian states and ten UK cities. The British Council will issue requests for proposals in the coming months, building on the UK’s Black Music Business Report that found 80 % of UK music revenue over the last 25 years came from Black music. In the United States, Asika has worked with the Recording Industry Association of America and Universal Music Group, highlighting collaborations with Mavin Records, Universal’s West Africa partner, and noting the company’s expanding presence in Nigeria. Additional links include a partnership with France through Make Music Lagos and an EU initiative on workforce mobility for creatives, enabling Nigerian talent to travel and earn across Europe.
The National Licensing Agency and Discover Nigeria platform are also part of the institutional infrastructure, and Asika said these bodies will be incubated with strong private‑sector leadership.
Implementing the IP collateral rules will require coordination with banks and other financial institutions. Asika expressed confidence that venture capital and patient capital will follow once the framework becomes fully operational.
The combination of new institutions, reformed financing mechanisms, and global partnerships is expected to boost the creative economy’s contribution to national development. By moving beyond short‑term streaming revenue to structured, investable assets and institutions, the framework aims to generate long‑term value for Nigerian artists and the broader creative sector. The policy shift aligns with broader efforts to elevate Nigeria’s creative sector on the global stage. The announcement, made during the Africa Music Business Roundtable, underscored the growing importance of intellectual property as a source of capital in the African creative economy and marked a significant policy shift that positions Nigeria to better harness its creative talent and attract international investment.