Nigeria Advances IP Securitisation Framework to Unlock Capital for Digital and Creative Economy
Stakeholders across Nigeria’s public and private sectors are intensifying efforts to establish a robust framework that will enable businesses in the digital and creative economy to leverage intellectual property (IP) assets as collateral for financing. This initiative aims to significantly expand access to capital for innovators, startups, and creative enterprises, addressing a critical bottleneck in their growth trajectory.
The drive towards an IP securitisation framework was a central theme at a recent stakeholder engagement session in Abuja. Convened by TNP (The New Practice), an Andersen collaborating firm and lead consultant for the framework’s development, in collaboration with the World Intellectual Property Organisation (WIPO), the meeting underscored the urgency of this reform. This engagement is part of the Investment in Digital and Creative Enterprises (iDICE) Programme, a Federal Government initiative implemented by the Bank of Industry (BOI) with support from the African Development Bank Group, Agence Française de Développement, and the Islamic Development Bank (IsDB).
Participants, including representatives from the Central Bank of Nigeria’s National Collateral Registry, the Nigerian Copyright Commission, the Trademarks Registry, the Patents and Designs Registry, the Federal Ministry of Finance, and the Federal Ministry of Arts, Culture, Tourism and the Creative Economy, alongside financial institutions, technology entrepreneurs, innovators, creators, and legal practitioners, delved into the legal, regulatory, operational, and financing requirements for a functional IP securitisation system. The core discussion revolved around recognising, valuing, and leveraging IP rights—such as copyrights, trademarks, and patents—as bankable assets.
A persistent concern highlighted was the limited recognition of IP as an acceptable financing instrument, despite its escalating contribution to enterprise value in technology-driven and creative businesses. While IP often represents a significant asset for startups and creative enterprises, existing financing structures frequently fail to acknowledge these intangible assets as viable collateral, thereby restricting access to credit and investment.
Samuel Esuga, a partner at TNP, emphasised that unlocking IP-backed financing necessitates robust valuation standards and stronger enforcement mechanisms. He stated, “The creative sector’s economic potential demands tailored valuation and enforcement mechanisms to treat IP as real assets for financing. Current gaps in IP collateral recognition and enforcement pose a barrier to financing start-ups using their intangible assets.”
The stakeholders identified substantial gaps within Nigeria’s IP and secured transactions ecosystem that must be addressed to foster an effective IP-backed financing market. Key priorities include developing standardised valuation methodologies to enhance transparency, facilitate accurate pricing of IP-backed financial transactions, and bolster investor and lender confidence.
Dr. Magnus Abeng, Co-chair of the iDICE Technical Committee, described the programme as a strategic intervention designed to stimulate growth in Nigeria’s digital and creative industries through improved access to finance, skills development, and policy reforms. He noted that the proposed Intellectual Property Securitisation Framework aims to overcome a major constraint by creating a mechanism for innovators, startups, and creative enterprises to leverage their IP assets for financing. “The proposed IP Securitisation Framework is designed to address one of the sector’s most pressing challenges, access to capital, by creating a pathway through which start-ups, innovators and creative enterprises can leverage intellectual property assets to secure financing,” Abeng remarked.
The framework is expected to establish the necessary legal, regulatory, and institutional structures to transform IP from a protected legal right into a recognised financial asset, supporting lending, investment, and capital market transactions. Stakeholders expressed a collective commitment to developing a comprehensive framework that aligns with international best practices while reflecting the unique realities of Nigeria’s digital and creative economy, with optimism that it will enhance access to finance, attract greater investment, and accelerate industry growth.
