For two decades in a row, Carnival Calabar has emerged as an epicentre of culture, colour, and costumes on the continent. But beneath the flamboyant spectacle and youthful energy lies an emerging economic architecture – one that recreates the interplay of public-private partnership (PPP) and community ownership, and how it drives prosperity, OLUSEGUN KOIKI writes.

As the Carnival Calabar marked its 20th anniversary in 2025, it became clearer than ever that Africa’s biggest street party has grown beyond cultural celebration into a strategic economic enterprise, positioning Cross River state as a case study in how culture can be used as a driver of local development, investment attraction and social stability.

Unlike conventional state-sponsored festivals, the Cross River State Government has positioned itself primarily as a regulator and enabler, but not the sole financier of the carnival.

Carnival Calabar was conceived in late 1999 as part of a broader attempt to reposition the state as a tourism destination. What began as a government-led cultural festival has since evolved into a 32-day fiesta, anchored in policy continuity, private-sector participation, and community development.

Under the theme, ‘Traces of Time,’ the 2025 edition of the carnival not only celebrated two decades of artistic expression and mass participation, but also served as a living archive of history, heritage and communal pride, while promoting public-private participation (PPP) as a veritable vehicle for driving development.

The festival, which began in 2005, was conceived as a yuletide celebration that would transform the city into a hub of culture, tourism and entertainment. Over the past two decades, it has steadily evolved from a local attraction to a continent-wide spectacle, drawing hundreds of thousands of visitors yearly.

Last year’s edition began on November 30, 2025, and continued till January 1, 2026, with the grand parades and competitions igniting the city’s central arteries with colour and sound. At the heart of the carnival is the deep interplay between tradition and contemporary expression.

Speaking on the economic philosophy behind the event, the Chairman of the Carnival Calabar Commission, Gabe Onah, said that the carnival had transitioned from being government-owned to one with private participation.

In an interview with The Guardian, Onah said that as a responsible government, the Cross River State Government provides an enabling environment for the private sector and the people to thrive through initiatives such as Carnival Calabar.

According to him, the carnival has created engagement among youths, elders, and women, improved the internally generated revenue (IGR) of the state, and ensured the sustenance of peace and harmony.

“A responsible government provides the enabling environment for people and organisations to thrive, and this is exactly what Carnival Calabar has done. It provides jobs, engagement for our youths, elders and women, especially.

“These are seen behind the scenes. How much can a responsible government profit from a concept of this nature? It is the period where our IGR improves, community people are engaged positively and it is a win-win for all – government, private sector and peace is ensured. How much can one pay for peace? The government cannot measure its success only in direct profit,” he said.

Unlike many state-sponsored events that have grown into fiscal drains, Onah said the event has gradually been repositioned as a platform, where the government regulates and coordinates while the private sector and communities generate value.

The Cross River State Government’s role in the yearly event is increasingly defined by institution-building rather than spending, he said.
He noted that the carnival operates under a legal framework, with a dedicated commission overseeing planning, licensing, safety, content regulation and brand protection.

The carnival brand is registered under the Madrid Protocol and the UK Trademark Office, a move that conveys seriousness of intention to investors and sponsors, while protecting its intellectual assets.

This regulatory clarity has enabled a gradual shift from heavy government financing to shared-risk participation, where private capital is increasingly driving execution.

Today, the Carnival Calabar sits at the centre of a complex value chain that stretches across hospitality, transport, entertainment, retail, logistics and the informal economy.

Hotels and short-let operators, including Tinapa Lakeside Hotel, Channel View Hotel, Axari Hotel and hundreds of serviced apartments, typically record near-full occupancy throughout December. Airlines schedule additional flights into Calabar, while road transport operators enjoy peak demand from neighbouring states.

Telecommunications companies deploy temporary infrastructure to support heavy data usage, while beverage and other product manufacturers leverage the carnival for consumer engagement, experiential marketing and product launches.

Event production companies, sound engineers, lighting specialists, costume designers, makeup artists and choreographers form another layer of the private economy that thrives during the festive period.

Beyond corporate actors, thousands of micro-entrepreneurs – food vendors, table water sellers, fabric traders, tailors, photographers and informal retailers and many more, make December now look forward to the event.

From the 12km carnival route to every nook and cranny of the ancient city of Calabar, the festival has become a melting pot of enterprise, not an elitist economy. It touches everyone.

IGR and indirect gains
While the government does not monetise Carnival Calabar through gate fees or direct ticketing, it benefits significantly through indirect revenue flows.

These include increased hotel occupancy taxes, business permits, vendor licensing, transport levies and consumption-driven taxes such as value-added tax (VAT).

More importantly, the carnival stimulates economic activity at a scale that sustains livelihoods and reduces social tension.
Such indirect benefits often outperform direct event monetisation, particularly in developing economies where inclusion and stability are key performance indicators.

One of Carnival Calabar’s defining strengths is the depth of community involvement. Local communities supply performers, volunteers, cultural content and creative labour. In return, they gain income, visibility and a sense of shared ownership.

A tourism consultant, Ikechi Uko, describes the carnival as a living industry ecosystem, where tradition and modern enterprise coexist.
According to him, this dynamic explains the carnival’s durability.

“If the carnival was not delivering value, the community would have resisted it long ago. Instead, it has become a social contract.
“Tradition is preserved in the cultural procession, while economic value is unlocked through the street carnival,” he said.
Uko told The Guardian that last year’s carnival not only celebrates two decades of artistic expression and mass participation, but also serves as a living archive of history, heritage and communal pride.

Uko explained that the carnival was the deep interplay between tradition and contemporary expression, dismissing the notion that the carnival had eroded the tradition of the Cross River people.

In the loop of Detty December
Carnival Calabar is often compared with Lagos’ Detty December, a loosely coordinated explosion of concerts, club events and entertainment-driven spending.

While ‘Detty December’ is undeniably profitable, its model is highly decentralised, driven almost entirely by private promoters, nightlife operators and entertainment brands.

Benefits are concentrated around urban leisure – hotels, clubs, restaurants and ride-hailing services, primarily within Lagos Island and its environs.

Rather than spontaneous clustering, the Carnival Calabar operates as a destination-led economy, curated over a defined period with a structured calendar. Visitors are encouraged to stay longer, explore cultural assets, interact with local communities, and spread their spending beyond nightlife to include accommodation, transportation, retail, and crafts.

“In tourism, we do not compete; we collaborate. The Carnival Calabar did not copy ‘Detty December’. If anything, it showed what a deliberate cultural economy can look like,” Onah said.

Also speaking, Special Adviser on Events Management and Chairman of the Carnival Calabar and Festival Committee, Effiong Ekpenyong, said the 2025 edition benefited from stronger coordination and early planning.

According to Ekpenyong, the carnival benefited from improved inter-agency collaboration, safety management, time discipline and programming.
He emphasised that attendance exceeded projections, which showed growing confidence from both participants and investors.

He pointed out that expanded programming, including gospel nights, cultural showcases, youth concerts and family-oriented events, was deliberately designed to broaden market appeal and increase spending diversity, adding that private operators had become the carnival’s strongest selling point.

Besides, the Portuguese Ambassador to Nigeria, Paulo Santos, who said he had attended several festival events, compared the carnival favourably with those in Brazil and Europe, calling for stronger global marketing and participation.

“I have had the opportunity to go straight to the Children’s Festival. The First Lady was there, and it was a beautiful parade. I thought it was just for children, but it was a very serious event. I was impressed by the quality of what we have seen since the festival began.

“So far, I mean, it can’t get any better than this. The opportunities that I have been given by the people here, who have been hosting me and accompanying me, are really interesting.

“I am already getting a good glimpse into what this city and what this state represent. Yesterday, I also went briefly to Akwa Ibom State. So, I already had the opportunity to see a bit of the countryside of this country. Of course, the fact that it’s near the coast and the ocean, for us Portuguese, it is always a big plus because we are maritime people. I couldn’t feel better than what I’m feeling now, really.”