FD Group Plc, a prominent investment firm in Nigeria, has emphasized the importance of increased financing for the entertainment and media industry to enhance foreign exchange earnings and economic growth.
During the Capital Market Correspondents Association of Nigeria (CAMCAN) quarterly Forum, sponsored by VFD Group, Folagbade Adeyemi, the Managing Director of Splitar Limited, discussed the group’s plans to launch SplitXchange, a specialized exchange platform for the media and entertainment sector. This platform aims to provide diverse investment opportunities for both local and international investors.
Adeyemi highlighted the potential of alternative assets, including Arts and Commodities, Real Estate, and Entertainment and Media (E&M), in the Nigerian market. He pointed out the growing demand for Nigerian content, with the country’s population estimated at 208.8 million people.
The lack of robust funding sources in Nigeria’s entertainment sector was also addressed by Adeyemi, who noted that most funding currently comes from outside the country. He emphasized the need to address liquidity, efficiency, and barriers to entry in the market.
Despite the global E&M market size reaching $41 billion in 2021, Nigeria only earns $5 billion from this sector, compared to the United States’ $750 billion and the United Kingdom’s $140 billion. Adeyemi highlighted the potential for growth in the Nigerian entertainment industry, citing successful investments by companies like Netflix and Amazon.
Adeyemi also discussed the challenges faced by investors and asset creators in accessing funding through traditional financial institutions. He noted the lack of recognition of Intellectual Property (IP) as collateral and the limited opportunities for fractional ownership of valuable assets.
Adeyemi stressed the importance of developing a well-structured marketplace for alternative assets in Nigeria to drive economic growth and provide more opportunities for investors and asset creators in the entertainment and media industry.
Comment here