According to the National Bureau of Statistics (NBS), Nollywood produced 635 movies in the second quarter of 2021 compared to 626 movies produced in the same period last year. Its growth in Q2 is the highest compared to the same period in previous years.
However, challenges such as lack of financing and poor infrastructure continue to hinder its full potential.
Nollywood is the second largest film producer globally in terms of value, the number of annual films, revenue, and popularity, second only to India’s Bollywood.
The industry’s radical growth in movie production occurred in 2020 when the pandemic hit and cinemas were shut.
“Our explanation for this is that film producers took advantage of the pandemic-fuelled video streaming trend on platforms like YouTube, Netflix, and other indigenous digital platforms. Netflix recorded an additional 37 million paid memberships last year,” analysts at FBN Quest said.
The sector has been identified as one of the priority sectors in the 2017 2020 Economic Recovery and Growth plan because it represents a potential growth driver for the economy.
Nollywood is a significant part of the Arts, Entertainment, and Recreation Sector which contributed 2.3 percent (N239 billion) to Nigeria’s Gross Domestic Product (GDP) in 2016 but its contribution declined to 1.22 percent in Q2 2021.
Despite its huge economic potentials for transforming Nigeria’s economic status, its continued growth hinges on the sector’s ability to address certain challenges.
“Piracy tops the list of film industry’s many challenges fuelled by weak enforcement of Nigeria’s copyright law. In the digital era of today, piracy has morphed into illegal download and distribution of movies without paying for them. Other challenges include lack of financing, poor infrastructure, and inadequate capacity,” the analysts said.
According to the World Bank, for every legitimate copy (of a Nigerian film) sold, nine others are pirated. As at 2014, an estimated figure of N82 billion was reported to have been lost by Nollywood alone to piracy. There are currently few legal channels for exporting movies; little or no returns go to the filmmakers.
However, the key to unlocking Nollywood’s full potential is in addressing these challenges, according to experts.
PWC, one of the leading consulting firms in the world, has projected that Nigeria’s Entertainment and Media (E&M) industry’s revenue will rise from $7.68 billion in 2021 to $14.82 billion in 2025.
Analysts at FBN Quest recommended that given the recent popularity of video streaming, the industry must also take advantage of improving internet penetration to expand the reach of its offerings.
Also, collaborations and co-productions with global film producers are encouraged to increase the industry’s exportable content and improve its visibility outside of Africa.
