Turning Your Creative Work into a Business in Contemporary Nigeria: IP as a Revenue Stream.

Introduction

In an era increasingly defined by intangible assets, intellectual property (IP) has emerged as a potent economic resource for creators across Nigeria. While talent and originality remain central to creative success, monetisation through structured legal and business frameworks is what transforms creativity into sustainable enterprise. For Nigerian artists, writers, musicians, filmmakers, and digital innovators, understanding how to commercialise IP is not merely a luxury—it is a necessity in an economy where informal sectors dominate and rights enforcement remains underdeveloped.

This article explores how creators in contemporary Nigeria can turn their works into viable business ventures, focusing on licensing, franchising, merchandising, and relevant tax considerations. Drawing on Nigerian legal principles and international best practices, it offers a practical and analytical approach to unlocking the value inherent in creative works.

The Nature of Intellectual Property as a Commercial Asset

Intellectual property refers to creations of the mind—such as literary and artistic works, designs, symbols, names, and inventions—that are protected by law. In Nigeria, the principal statutes governing IP include the Copyright Act 2022, the Patents and Designs Act 1970, and the Trademarks Act 1965. Under these frameworks, IP rights confer exclusive control to the rights holder, enabling them to license, assign, or otherwise exploit these assets for profit.

The transformation of creative output into a business begins with recognising IP as not just a legal entitlement, but a commercial tool. For example, a musician owns copyright in their composition and recording; these rights can be fragmented and monetised through performance rights organisations, streaming deals, or licensing for commercials. Similarly, a visual artist’s brand can be developed into a merchandising line OR even a novelist’s character universe ie collection of fictional characters, settings, storylines, and themes created in a book or series, can be licensed to film studios or game developers.

Yet, commercialisation requires more than ownership—it requires strategy. The creator must understand market value, legal protections, enforceability, and the infrastructure to manage and monetise their IP.

Licensing: Leveraging Control While Retaining Ownership

Licensing is one of the most effective ways to monetise IP in Nigeria. A licence is a contractual agreement by which the rights holder (licensor) permits another party (licensee) to use their intellectual property for a defined purpose, in a specific territory, and for a certain duration. The Copyright Act 2022 affirms the right of authors to grant licences for reproduction, adaptation, performance, broadcasting and other uses of their works, either exclusively or non-exclusively.

A well-drafted licence agreement enables the creator to earn recurring income while maintaining ownership. In Nigeria’s music industry, for instance, mechanical licences permit streaming platforms like Boomplay or Spotify to use artists’ recordings. In publishing, authors license their works to publishers in exchange for royalties. In the digital space, developers often license their software under open-source or commercial terms.

However, licensing requires attention to detail. Key clauses should cover the scope of use, payment structure (flat fee, royalty, or hybrid), duration, termination rights, indemnity, and dispute resolution.

A clearer instance of licensing within the Nigerian creative or tech ecosystem can be found in the licensing of digital content services by the Nigerian Copyright Commission (NCC). For example, platforms like iROKOtv and YouTube partners (Nigerian channels officially monetising content) typically enter into licensing agreements with rights holders (such as Nollywood producers) to host and monetise films.

These agreements are often registered with the NCC to ensure enforceability and public record, especially when disputes arise over revenue-sharing or piracy. Registration is strongly recommended in cases of exclusive or high-value licences.

Registration Process through the Nigerian Copyright Commission (NCC):

1. Submission of the Licensing Agreement: The rights owner (licensor) or their lawyer submits the licence agreement to the NCC, stating whether it is exclusive or non-exclusive.
2. Accompanying Forms and Documents: Includes the NCC’s standard registration form, a statutory declaration, and proof of ownership (e.g., copyright registration certificate or assignment document).
3. Payment of Filing Fees: A modest fee is paid depending on the category and scope of the licence.
4. Review and Entry into Register: The NCC reviews the submission to ensure compliance with the Copyright Act 2022 and, if approved, enters it into the official register of copyright transactions.

This process does not create the licence but provides legal certainty and public notice of the transaction. It is particularly useful where disputes over exclusivity, scope, or territorial use might arise

Moreover, for international deals, Nigerian creators must consider jurisdictional issues and the protection afforded under treaties such as the Berne Convention and TRIPS Agreement.

A notable example of jurisdictional and treaty-based protection is the case of Nollywood films licensed for global streaming on Netflix. When Nigerian producers license their content to Netflix (a U.S.-based company), the licensing agreement typically includes jurisdictional clauses that govern where and how disputes will be resolved — often stipulating New York or California law, or international arbitration.

In such cross-border deals, Nigerian creators must ensure that their copyrighted works are protected not only in Nigeria but also internationally. This is where international treaties come into play based on the following facts:

• Nigeria is a signatory to the Berne Convention for the Protection of Literary and Artistic Works, which mandates that Nigerian creators enjoy automatic copyright protection in all other Berne member countries (currently over 180 countries), without the need for further registration.
• Additionally, under the TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights), to which Nigeria is also a party via its WTO membership, Nigerian works receive enforceable IP protection standards in other WTO member countries. TRIPS also sets minimum enforcement obligations and dispute resolution processes that can be relied upon in international litigation or arbitration.

In 2020, Mo Abudu’s EbonyLife Studios entered a multi-title content partnership with Netflix, the IP involved (films, series concepts, character rights), which were protected internationally under both the Berne Convention and TRIPS, ensuring EbonyLife’s rights remained enforceable in the U.S., UK, and other Netflix territories

Franchising: Replicating Creative Business Models

Franchising offers a strategic pathway for Nigerian creatives who wish to scale their brand and business operations without directly managing every outlet. In legal and commercial terms, franchising is a model through which a creator or brand owner (the franchisor) permits another party (the franchisee) to operate a business using the franchisor’s brand, trade secrets, and other intellectual property under specified conditions.

Although Nigeria does not currently have a specific franchise law, the legal architecture governing franchising is built on multiple intersecting frameworks. The most fundamental of these is contract law. Since franchising is a contractual relationship at its core, the Nigerian Law of Contract governs the franchise agreement. The agreement must be legally valid—i.e., based on offer, acceptance, consideration, and an intention to create legal relations. It must also clearly outline the scope of the franchise i.e territorial boundaries, obligations of the franchisor and franchisee, quality control expectations, duration, renewal terms, and conditions for termination. Vague or incomplete agreements expose both parties to operational and legal risks, including disputes over revenue-sharing, branding, or performance.

Intellectual property law, particularly the Trade Marks Act, plays a central role in franchising, as it protects the creative assets that form the foundation of the franchise. A creative entrepreneur must register their brand name, logos, slogans, and related marks with the Trademark Registry to ensure enforceability and exclusivity. The franchisee is then licensed to use these marks under controlled conditions. Without such protection, the franchisor may lose the ability to restrict unauthorised use, leading to brand dilution or reputational damage.

Franchise arrangements must also be examined through the lens of competition law. The Federal Competition and Consumer Protection Commission Act 2018 prohibits agreements that may substantially restrict competition or create monopolistic control. Clauses in franchise agreements that engage in price-fixing, exclusive dealing, or territorial restrictions must be carefully evaluated to avoid contravening anti-competitive practice provisions under the oversight of the Federal Competition and Consumer Protection Commission (FCCPC). While some restrictions may be justifiable for brand consistency or quality control, overly broad or oppressive terms may invite regulatory scrutiny.

Furthermore, franchising arrangements must comply with Nigeria’s consumer protection laws, also administered by the FCCPC, ensuring that the rights of end consumers are upheld, regardless of whether they are dealing with the franchisor or franchisee. Issues such as false advertising, misleading promotional materials, product safety, and fair refund policies fall within the FCCPC regulatory purview. Failure to uphold these standards can result in penalties, sanctions, or reputational damage, all of which may undermine the long-term viability of the franchise system.

In practice, creative entrepreneurs can adopt franchising to replicate successful business models in fashion, food, entertainment, or lifestyle branding. A designer with a successful boutique in Lagos, for instance, may enter into franchise agreements to expand into Abuja, Port Harcourt, or even across West Africa, provided the underlying IP is protected and regulatory compliance is ensured.

While franchising offers tremendous growth potential, it demands strategic planning and robust legal infrastructure. Prospective franchisors must work closely with IP lawyers, tax advisors, and business consultants to ensure that the franchise model is scalable, legally compliant, and aligned with long-term business goals

Merchandising: Materialising Creative Expression

Merchandising involves the commercial use of characters, images, logos, or phrases from a creative work on physical goods. It allows creators to monetise fan engagement and cultural capital. For example, a popular comic book character can appear on clothing, mugs, posters, and even video games—each representing a separate revenue stream.

A global case study in merchandising excellence is Barbie, the iconic doll brand owned by Mattel Inc. Since its launch in 1959, Barbie has evolved from a toy into a multi-billion-dollar lifestyle brand. The company has licensed Barbie’s image, logo, and characters across a vast range of products — from backpacks and lunchboxes to video games, cosmetics, animated films, and most recently, the 2023 Barbie live-action movie. That film alone drove over $1.4 billion in global box office revenue, while also triggering a fresh wave of merchandise sales in apparel, beauty, and home decor, co-branded with leading global retailers.

This model of IP commercialisation demonstrates the power of character-based branding. Barbie’s pink-themed aesthetic, distinct typography, and cultural influence have been licensed to hundreds of manufacturers globally. Each merchandising deal is underpinned by formal IP licensing agreements, often registered in accordance with national laws and protected under international treaties such as the Berne Convention and TRIPS.

For Nigerian creators, this offers a replicable blueprint. A comic artist or author can license characters for school supplies, clothing lines, or animated web series. Music artists can monetise their brands through fashion lines or branded accessories. But these activities must be governed by well-structured licensing contracts to ensure that royalty rates, production quality, brand consistency, and territorial rights are clearly defined — and enforced where necessary.

Merchandising, when backed by a strong IP strategy, allows a brand to transition from creative expression to commercial empire, a model that Barbie has arguably perfected over six decades.

The commercial success of merchandising depends heavily on branding and marketing. Nollywood films, for instance, have begun exploring merchandise extensions, such as T-shirts bearing iconic quotes or character imagery. Similarly, music artists may sell branded merchandise during concerts or online, extending the lifecycle and reach of their creative works like Beyoncé is currently doing at the Cowboy Carter Tour.

Importantly, creators must monitor and enforce their IP rights to avoid unauthorised use or counterfeit merchandise, a common problem in Nigeria’s informal markets. Partnering with established retailers, using digital sales platforms, and entering joint ventures can reduce operational burdens while ensuring professional distribution.

Tax and Regulatory Considerations

Transforming creative work into a business also entails compliance with Nigeria’s tax and regulatory framework. IP-generated revenue—whether through royalties, franchise fees, or merchandise sales—is subject to taxation under Nigerian law.

The Federal Inland Revenue Service (FIRS) treats income from licensing or royalties as part of a taxpayer’s assessable income under the Personal Income Tax Act 2011 or the Companies Income Tax Act 2007, depending on whether the rights holder is an individual or a corporate entity. In some cases, withholding tax may be applicable on royalty payments, particularly in cross-border transactions.

Moreover, Value Added Tax (VAT) obligations may arise from the sale of merchandise or licensing of digital content. Section 2 of the VAT Act 2007 (as amended) imposes VAT on the supply of goods and services in Nigeria, including intangible assets such as software or artistic content.

To reduce tax exposure and ensure compliance, creators should consider formalising their businesses through business name registration or incorporation under the Corporate Affairs Commission (CAC). This not only enhances credibility but also facilitates access to bank loans, grants, and investor funding.

In some instances, creators may benefit from tax incentives, such as the Pioneer Status Incentive for creative sectors or specific waivers granted by the Nigerian Export Promotion Council (NEPC) for export-oriented creative goods. Legal and tax advisors play a crucial role in helping creatives navigate these complexities.

Challenges and Opportunities in the Nigerian Context

While the potential to monetise IP is considerable, Nigerian creatives face systemic barriers that can inhibit revenue generation. These include weak enforcement of IP laws, piracy, lack of access to legal counsel, limited financial literacy, and inadequate government support. Despite the Copyright Act 2022 introducing stronger provisions for digital enforcement and recognition of new rights, implementation remains a challenge.

However, digital platforms have created new frontiers for IP monetisation. Social media, streaming services, e-commerce, and blockchain technologies offer Nigerian creators global exposure and direct-to-consumer models. The increasing interest of international investors and the growth of the African Continental Free Trade Area (AfCFTA) present new opportunities for regional and global licensing of Nigerian content.

To fully realise these opportunities, creators must invest in IP education, form partnerships with professionals, and adopt a business mindset. This includes maintaining documentation of ownership, using contracts in all commercial dealings, and taking advantage of registration systems offered by regulatory agencies like the Nigerian Copyright Commission (NCC), the Trademarks Registry, and the CAC.

Conclusion

In contemporary Nigeria, turning creative work into a business is no longer aspirational—it is both practical and necessary. Intellectual property offers a suite of tools that enable creators to generate revenue, build brands, and scale their impact. Licensing, franchising, and merchandising serve as powerful commercialisation strategies, while proper attention to tax and regulatory issues ensures legal and financial sustainability.

For Nigeria to fully unlock the potential of its creative economy, institutional support must be complemented by creator-driven action. Creatives who recognise their work as a business, and treat their IP as a core asset, are best positioned to thrive in an increasingly competitive and globalised market.

Written by Adeola Osifeko LLB, LLM, ACIS, ABR. Partner Corporate Commercial Group at AEO Law Practice.

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References

1. Copyright Act 2022 (Nigeria)
2. Trademarks Act Cap T13, LFN 2004
3. Patents and Designs Act Cap P2, LFN 2004
4. Companies and Allied Matters Act 2020 (Nigeria)
5. Thomas Buckley and Bloomberg, ‘Barbie doll sales boom for Mattel after the namesake’s movie became a global blockbuster’ Fortune 2023 https://fortune.com/2023/10/25/barbie-sales-mattel-movie-film-doll/ Accessed 17 May 2025
6. Personal Income Tax Act Cap P8, LFN 2011 (Also see Chijioke Uwaegbute, and Emuesiri  Agbeyi, ‘Individual – Taxes on personal income’ PWC Tax Summaries 2025 <https://taxsummaries.pwc.com/nigeria/individual/taxes-on-personal-income> Accessed 16 May 2025
7. Companies Income Tax Act Cap C21, LFN 2007 <https://old.firs.gov.ng/wp-content/uploads/2021/07/Company-Income-Tax-Act.pdf >
8. Value Added Tax Act Cap V1, LFN 2007 (as amended)  <https://www.firs.gov.ng/vat>
9. World Intellectual Property Organization (WIPO), Understanding Copyright and Related Rights (2nd edn, 2016) https://www.wipo.int/edocs/pubdocs/en/wipo_pub_909_2016.pdf Accessed 14 May 2025