Just recently, the US International Trade Administration suggested that the industry is estimated to hit $10.8 billion in revenue. They say that this is largely driven by Nollywood films and Afrobeats music.

Nollywood alone produces more than 2,500 films per year. This makes it the world’s second-largest film industry by volume. Afrobeats has also contributed over $8 billion to the economy, with major artists like Burna Boy, Wizkid, and Rema reaching a global audience.

As of 2023, the entertainment industry has contributed $1.4 billion to Nigeria’s GDP. With such figures, it has been reported that this is a growth rate of 27.5% over the last three years.

What Caused This for Nigeria?

The rise of streaming really helped. Platforms like Netflix, Amazon Prime Video, Showmax, and IrokoTV have given both Nollywood films and Afrobeats global distribution. Fifteen years ago, this simply didn’t exist.

Adding to this, Nigeria has received a lot of international recognition over the last few years. This includes the Grammy win for Burna Boy, Netflix originals produced in Lagos, and Afrobeats hitting the Billboard Hot 100 charts, legitimizing Nigeria as an entertainment center.

Both these causes have helped each other. Streaming provided the platform, and Nigerian creators provided the content. The content was well-received by the rest of the world, and now it’s growing the way it should.

Volume and consistency instantly come to mind. Nollywood produces over 2,500 films per year. That’s actually more than Hollywood’s output. The same goes for the music industry. Again and again, they’ve managed to produce countless top 100 tracks.

Variety is something else we see they’ve focused on. Modern Nigerian entertainment covers an unbelievable number of genres. Pretty much every genre imaginable. This is similar to how other entertainment platforms working in highly competitive industries work. For example, UK slots online platforms operate by offering hundreds of games and dozens of providers, like Pragmatic Play. The goal is to put so much variety out there that you naturally attract all different target audiences.

Next is distribution. Most Nigerian music is discovered on TikTok and Spotify nowadays. Once they “blow up” here, then traditional radio stations begin to play them. This is similar to Nollywood as well. It’s rare to see a Nollywood film in the cinema in the West. However, on streaming platforms, they’re readily available.

What’s Next for Nollywood?

Nigeria’s Ministry of Arts, Culture, and Creative Economy has announced “Destination 2030: Nigeria Everywhere.” They are aiming to create two million jobs annually in Nigeria’s entertainment sector, all while injecting another $100 billion into GDP through such industries.

Though great, challenges are still there and need to be overcome for significant growth. This is mainly in Nollywood. Around 40% of potential income from Nollywood goes to piracy costs. If they tackle this issue first, they may be able to reach their 2030 goal. (The Nation)