A report recently released by the Nigerian Entertainment Conference (NECLive) has revealed that the Nigerian entertainment industry is projected to reach an estimated $14.82 billion in revenue in 2025, up from $4 billion revenue recorded in 2013.
The report, titled “Growth, Trends, and Opportunity in Nigerian Creative and Entertainment Industry”, was written by NECLive, an entertainment research organisation.
According to NECLive founder, Ayeni Adekunle, the projections are based on the Africa Entertainment and Media Outlook 2023-2027, by PriceWaterhouseCoopers (PwC), a global expert in accounting and business reengineering.
“In 2012, the industry encountered formidable challenges, causing frustration and disillusionment. However, that very frustration became the catalyst for a transformative spark, giving birth to the visionary concept of NECLive. This audacious initiative aimed to unite the nation’s finest creative and industry minds, facilitating dynamic brainstorming sessions, fostering invaluable networking opportunities, and showcasing exceptional talent.
“In 2013, the realisation of this dream became a remarkable reality,” Mr Adekunle said.
He said that for the many aspiring actors and actresses who have come into Nollywood and made it big, the growing numbers in revenue stand as a testament to the sweat and work of the last 10 years.
Mr Adekunle also said that the industry has undergone a remarkable shift from struggling to sell music tapes and gain airplay on radio stations to a phase where artists, managers, producers, directors, and labels are thriving on established structures, leading to increased international recognition and acceptance.
According to him, this paradigm shift highlights that music is not merely an art but a substantial source of revenue and that the film and comedy sectors have become intricately linked, transitioning to online platforms to adapt to modern technologies, and fostering sectoral growth.
The report provided an in-depth analysis of the financial performance across various industry sectors over the past decade, spanning from the music industry to film, fashion, and comedy.
Projections indicate an impressive 16.5 per cent Compound Annual Growth Rate (CAGR) in revenue over the next five years. This growth is attributed to various factors, including the rising internet accessibility among mobile users, with an expected increase from 54 million to 78 million subscribers within the timeframe.
Additionally, the surge in streaming platforms and the integration of innovative technology like Generative AI are poised to drive double-digit revenue growth.
The report also delves into the growth, trends, and opportunities in the Nigerian creative and entertainment industry over the last decade and outlines its future expansion plans.
The film sector’s evolution from producing and distributing 1,800 films worth $5.1 billion in 2013 to 2,500 films valued at $6.4 billion currently has positioned Nigeria as the world’s second-largest film producer.
The entertainment industry has undergone a remarkable shift from struggling to sell music tapes and gain airplay on radio stations to a phase where artists, managers, producers, directors, and labels are thriving on established structures, leading to increased international recognition and acceptance.
The era of cassette tapes and DVDs, the group further said, “had given way to a thriving scene marked by sold-out global concerts and tours, international and local awards such as the Grammys, Billboard, BET, MTV Europe Music Awards, and AMVCA, exclusive movie premieres and cinema viewings, topping charts and grossing billions through extensive streaming on digital platforms like IrokoTV, ShowMax, Netflix, and Amazon Prime Video. The entertainment industry boasts an impressive track record of milestones, projecting its superstars, projects, and creative works onto the global stage.
The report stated that “For the many aspiring actors and actresses who have come into Nollywood and made it big, the growing numbers in revenue stands as a testament to the sweat and work put in place within the last ten years and beyond. The sector has moved from the production and distribution of 1,800 films worth $5.1 billion in 2013 to 2,500 films worth $6.4 billion and counting. This makes Nigeria the 2nd largest film producer in the world.”
“Amid progress, it’s essential to acknowledge the challenges that once plagued the entertainment industry, such as high cases of piracy, which crippled profitability, and limited funding that hampered creativity as well as lack of international exposure.