Nigerian Film Industry to Hit N50 Billion Box Office Revenue by 2028
Nigeria’s film industry, famously known as Nollywood, has cemented itself as a formidable force globally, now valued at around $6.4 billion. In recent years, Nollywood has attracted considerable international attention, driven by a demand for well-crafted productions that resonate culturally with both local and global audiences.
While Nollywood hasn’t yet reached the same level as Nigeria’s thriving music scene, it has shown remarkable growth in 2024. Recent box office hits, such as Queen Lateefah and Farmer’s Bride, collectively earned over N400 million within weeks and continue to draw viewers. Recognizing this momentum, industry experts, including the President of the Cinema Exhibitors Association of Nigeria, Ope Ajayi, are closely examining the sector’s rapid growth, challenges, and opportunities.
Ajayi, who also heads Cinemax Distribution Limited, believes several factors are propelling Nollywood’s growth. Improved production quality and willingness among filmmakers to experiment with genres have played a significant role. Recent trends include an increase in biopics, faith-based narratives, and a resurgence of epic films, all indicative of the entrepreneurial spirit within the Nigerian film industry. Last year’s total revenue for the West African box office was N7.24 billion; by October this year, Nollywood had already exceeded this amount, with at least one film surpassing N100 million each month.
Looking ahead, Nollywood’s box office is on track to reach a projected revenue of N11–12 billion by the end of the year. This upward trend signals a promising future for the industry, with revenue growth appearing consistent and the demand for Nigerian stories continuing to increase.
As international streaming giants like Netflix and Amazon Prime have entered the Nigerian market, they’ve spurred significant improvements in the quality of Nollywood productions. Filmmakers are now producing content that meets global standards in cinematography and storytelling, catering to a discerning Nigerian audience that consumes content worldwide. Moreover, these platforms offer dual revenue opportunities: films are first released in cinemas and later on streaming platforms, broadening Nollywood’s reach to a diverse, global audience.
There has also been a noticeable rise in the popularity of Yoruba epic films, such as Jagun Jagun, Lisabi, and Agesinkole, indicating a growing appetite for indigenous storytelling. These films, which blend rich cultural narratives with high production values, showcase Nigeria’s historical and traditional stories in a way that only Nigerians can authentically deliver. With streaming services enabling easier access, Nollywood’s cultural storytelling has found audiences far beyond Nigeria’s borders. This trend highlights a shift in viewers’ preferences, suggesting that Nollywood’s unique cultural content could carve out a niche in the global film market.
For filmmakers wanting their productions featured in Nigerian cinemas, there’s a set process involving registered distributors who work with the National Film and Video Censors Board (NFVCB). Once a film is classified by the NFVCB, distributors engage cinemas for screening arrangements. Agreements are then drawn up between producers, distributors, and cinemas, ensuring a structured approach to film distribution across Nigeria’s cinemas.
On the financial side, Nigerian cinemas operate within frameworks similar to those of streaming platforms, where revenue-sharing models are in place. These frameworks guide revenue splits between producers, distributors, and cinemas, with each arrangement tailored to factors like the perceived strength of the film. This system allows both cinema and streaming channels to play essential roles in Nollywood’s financial ecosystem, boosting overall revenue.
Despite Nollywood’s successes, there’s a strong call for policy changes to support sustainable growth. The industry could benefit significantly from investment in infrastructure and funding accessibility. While agencies like Nigeria’s Bank of Industry offer some support, strict requirements often limit access to a few industry players. Expanding access to affordable funding and providing training programs across financial, legal, and business development domains could help smaller players thrive in Nollywood.
As for the cinema sector’s growth projections, the Cinema Exhibitors Association foresees promising trends. By the end of this year, Nollywood is expected to achieve an impressive box office figure of N11–12 billion, up more than 50% from the previous year. With continued high-quality productions and the expansion of cinemas, the association estimates a potential box office revenue of N45–50 billion within the next four years. Factoring in additional revenue streams, such as advertising and concessions, the total industry value could exceed N100 billion.
However, global challenges persist. Due to the devaluation of the naira, Nollywood’s box office revenue remains comparatively lower on the international scale, as the weakening currency inflates production costs and compresses marketing budgets. This impact has doubled the cost of producing high-quality films, although local growth remains steady. Double-digit increases in cinema admissions are projected, with Nigerian films increasingly expected to achieve box office revenues of over N1 billion each quarter.
On the production side, costs remain significant, with expenses spanning cast, crew, equipment, locations, and more. Additional challenges include logistical hurdles, the need for security, and specialized costs such as music licensing. These complexities underscore the substantial investment required to produce high-caliber films in Nigeria.
Nollywood’s future looks bright, as the industry continues to demonstrate resilience, creativity, and a growing influence on both local and global stages. As more investments, improved policies, and expanded infrastructure come into play, Nollywood is set to further solidify its role as a cultural and economic powerhouse in the years ahead.
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