CBN, Bankers Committee open opportunity for lenders at National Theatre

The ongoing renovation of the National Theatre, now nearing completion, has been identified as a strategic opportunity for financial institutions to invest and support the Federal Government’s vision of a $1 trillion economy.

The Central Bank of Nigeria (CBN) and the Bankers Committee last week visited the National Theatre, and reiterated commitment towards achieving the goals.

The National Arts Theatre, built approximately 48 years ago, stands as one of Nigeria’s most iconic landmarks.

Analysts believe the project will open financing opportunities for commercial banks when activities fully commence after the renovation.

During a tour of the Theatre by the CBN and some banks’ CEOs, Olayemi Cardoso, governor of the CBN, said that the revitalised National Theatre is positioned to drive significant growth across the creative industry, which is projected to generate about $25 billion.

On October 5, 2019, President Muhammadu Buhari approved the reconstruction of the National Theatre in Iganmu, Lagos, into a world-class convention center for the development of the creative sector in diverse areas, including entertainment, movies, music, fashion, and Information and Communication Technology (ICT).

As the initial investment in the creative industry, the government expects to create at least 1 million jobs when the project begins operations.

In 2022, the CBN and the Bankers’ Committee collectively agreed to invest over N65 billion to rehabilitate the National Arts Theatre and restore it to its former glory. This effort has been carried out in collaboration with the Federal Ministry of Information and Culture (FMIC), the Ministry of Youth and Sports Development, and the Lagos State Government.

Ayokunle Olubunmi, head of financial institution ratings at Agusto & Co. said banks have opportunity to finance activities at the National Theatre but that depends oh how it is managed. He said there would be a lot of activities such as cultural, training schools, events, and skill development, among other activities that will require banks involvement.

“The banking industry is now open to creative minds ready to explore untapped areas in the economy,” said Uche Olowu, former president and chairman of the council at the Chartered Institute of Bankers of Nigeria (CIBN), recently.

Several Nigerian banks have introduced initiatives to support the creative sector, recognising its potential for economic growth and job creation. Through its Creative Industry Financing Initiative, GTBank offers loans of up to N500 million to entrepreneurs in fashion, music, movie production, and information technology.

As part of the Central Bank of Nigeria’s initiative, Access Bank provides the Creative Sector Loan, which focuses on capacity building and employment creation for individuals and businesses in sectors such as fashion, information technology, movie production and distribution, music, and software engineering.

The Nigerian Export-Import Bank (NEXIM) has introduced the creative arts and entertainment industry facility, aimed at achieving strategic objectives in supporting the creative sector.

Sterling Bank has expressed a strong commitment to empowering the creative industry, acknowledging its strategic importance to Nigeria’s economic growth.

Union Bank’s creative industry fund is designed to finance entrepreneurs in the creative and information technology sectors, focusing on music, fashion, movie production and distribution, and IT.

In collaboration with the Office of the Special Assistant to the President on Creative and Digital Economy, Wema Bank is working to unlock new funding opportunities for the creative economy.

Through its First@Arts initiative, First Bank consolidates efforts in the arts by supporting the entire value chain of the creative industry, offering financing, advisory services, and showcasing industry successes.

According to Cardoso, the transformation of the iconic venue extends beyond infrastructure and serves as a catalyst for widespread economic benefits that will go beyond the creative community and impact the broader Nigerian population.

“This project is a critical step towards unlocking the enormous potential of the creative sector, which has been estimated at approximately $25 billion. As the industry grows and flourishes, the prosperity it brings will not be limited to creatives alone but will benefit Nigerians across the board,” Cardoso said.

He added that the successful execution of the National Theatre project sends a strong message about the power of collaboration between the public and private sectors. “When an initiative of this scale succeeds, it sets a precedent. It encourages others to follow, and soon the impact becomes self-evident,” he said.

He stressed the need for collective ownership of the project, stating that the responsibility of safeguarding the National Theatre’s legacy does not rest solely with the Bankers’ Committee but with every Nigerian.

“Looking ahead, it is extremely important to stress that all of us, as Nigerians, not just the Bankers’ Committee, should take pride in defending and preserving what has been established here. This is not merely about the Bankers’ Committee or a specific group of people; this is a collective effort that involves every one of us,” he said.

Read also: Cardoso sees national theatre unlocking $25bn in creative sector

Cardoso explained that beyond the physical transformation of the edifice, the project stands as a symbol of Nigeria’s cultural heritage, with local traditions and history embedded within its design. According to him, the success of the National Theatre renovation showcases the power of collaboration between the private and public sectors, which he believes will continue to drive the vision forward.

“As the creative sector grows and thrives, it will not only benefit those directly involved in the industry but also contribute to the broader prosperity of Nigerians as a whole. I believe this achievement sends a powerful signal about the opportunities that exist through collaboration. When something of this magnitude succeeds, it naturally inspires others to follow suit, and the results will be evident without needing further explanation,” Cardoso said.

Reflecting on the historical significance of the National Theatre, Cardoso, a Lagos native, recalled the pride the edifice once brought to the state during events such as FESTAC 1977. However, he lamented the years of neglect that led to its deterioration and eventual abandonment.

“I remember this place vividly. I recall its prominence during FESTAC 1977 and the many times we came here for various events and activities. We, as Lagosians, were immensely proud of this iconic space. Sadly, over the years, due to neglect, lack of maintenance, and other issues, this remarkable edifice deteriorated and was eventually abandoned,” he said.

He noted that seeing the National Theatre transformed into a world-class facility once again is a testament to the resilience and determination of the Nigerian people and those who committed resources and vision to its rebirth.

“Beyond the physical structures, which are world-class, this place now competes with similar venues globally. For the professionals who will work here and those whose careers will be centered around this space, this marks a tremendous leap forward. It is an achievement that every Nigerian should be extremely proud of,” he stated.

Cardoso also said that the renovation of the National Theatre is only the first phase of a larger plan to build a creative industry ecosystem across Lagos State. He reiterated the commitment of the Bankers’ Committee and the CBN to sustaining the broader vision of turning Lagos into a creative hub capable of generating significant economic growth.

As of 2022, significant progress had been made in the renovation, including the installation of new service routes, remodeled interior spaces, nearly 300 units of conveniences, and a 3,000-square-metre roof terrace, which had been a major source of leakages. Floors, walls, panels, and ceilings had been stripped back to ensure that all underlying structures support new finishes.

The renovated theatre now offers a 4,000-seater main bowl with new stage infrastructure featuring future-fit performing arts spaces for dance, theatre, music, and multimedia. The acoustics and technical systems have been upgraded to accommodate the requirements of audiences, artists, and sponsors. Additionally, the banquet halls, exhibition spaces, and two 500-seater cinemas have been fully refurbished.

A station of the Lagos rail system is expected to complement other world-class facilities, including a five-star hotel, an ultramodern car park, a leisure park, and an artists’ village.

Meanwhile, as part of efforts to boost job creation in Nigeria, particularly among the youth, the CBN, in collaboration with the Bankers’ Committee, developed a Creative Industry Financing Initiative (CIFI).