VFD Group has set its sights on SplitXchange as a solution for alternative finance in various industries, particularly in entertainment and media, aiming to bolster foreign exchange earnings and overall economic progress.
During the Capital Market Correspondents Association of Nigeria (CAMCAN) quarterly Forum, hosted by VFD Group Plc, Mr. Folagbade Adeyemi, Managing Director of Splitar Limited, stated the imperative of increased financing for sectors like entertainment and media to drive economic growth.
Adeyemi revealed that the group is actively developing SplitXchange, a specialized exchange platform tailored to the needs of the media and entertainment industry, poised to provide diverse investment opportunities for both local and international investors.
The platform, still in its developmental phase, is envisioned to serve as a financing avenue for various alternative assets, with a primary focus on the media and entertainment sector.
Highlighting the vast potential within alternative assets, Adeyemi mentioned Splitar Holdings’ commitment to pioneering the alternative assets space through its innovative digital exchange, Split Exchange.
Given Nigeria’s substantial population of approximately 208.8 million, Adeyemi stressed the escalating demand for locally produced content, underscoring the significance of supporting and financing the entertainment sector domestically.
Discussing the theme “Beyond Tradition: Increasing Relevance of Alternative Assets in Capital Market,” Adeyemi lamented the inadequate funding infrastructure within the country, noting that much of the financing for Nigeria’s entertainment sector currently originates from external sources.
He outlined the burgeoning market for alternative assets, including Arts and Commodities, Real Estate, and Entertainment and Media (E&M), signalling substantial opportunities for investment diversification.
Specifically addressing the potential of the Entertainment and Media sector, Adeyemi cited a global market size of $41 billion as of 2021, with an estimated growth rate of 4.2 per cent.
Pointing to notable investments by industry giants like Netflix and Amazon, which have produced blockbuster content with widespread viewership worldwide, Adeyemi stressed the untapped potential of Nigeria’s pension assets, which have yet to venture into investments within the entertainment or streaming services domain.