Nigeria Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in nigeria, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Media and Entertainment
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Overview

Nigeria’s media and entertainment industry, especially Nollywood, has demonstrated substantial growth and international appeal, solidifying its role as a major economic driver. Nollywood, producing around 2,500 films annually is now the second-largest film industry globally by volume. As of 2023, the industry, along with the booming music sector, contributed approximately ₦1.97 trillion (USD $1.4 billion) to Nigeria’s GDP, representing a 27.5 percent increase over three years. Both domestic and international demand fuelled the rapid growth of the sector, supported by popular streaming platforms and creating thousands of jobs and expanding Nollywood’s global reach. With earnings of over ₦5 billion in the first half of 2024, Nollywood’s share of box office revenue reflects local films’ popularity, which accounted for 56 percent of the total revenue, showcasing the industry’s appeal in cinemas and streaming alike.

The Nigerian television and video sectors continue to thrive, with revenues expected to reach nearly $900 million in 2023, largely driven by subscription-based models, which account for over 70 percent of the revenue. Streaming has played a pivotal role, enabling Nigerian films and Afrobeats music to reach a global audience. Platforms like Netflix, Iroko TV, and Amazon Prime cater to a growing streaming audience and have invested significantly in local content. Netflix has invested over $23 million in local content in Nigeria showcasing the potential growth of this sector

Since launching in August 2022, Amazon Prime Video’s localized service in Nigeria has introduced exclusive Nigerian originals, like Gangs of Lagos and LOL: Last One Laughing Naija which showcase local talent and culture. Amazon has tailored its services to local consumers with payment options in Naira and a Nigerian-specific marketing campaign, signalling a strong commitment to the Nigerian market alongside Netflix and other streaming competitors. Prime Video’s expanded slate now includes exclusive deals with major local studios, supporting the industry’s growth and international reach.

The Nigerian Pay-TV market has shown consistent growth, with over 6.9 million households subscribing in recent years. This number was projected to surpass 7.4 million by 2023, making Nigeria the leading market for pay TV in Africa. With local and international demand for Nollywood and Afrobeats, the Nigerian entertainment industry is projected to reach an estimated $10.8 billion in revenue, accounting for a growing share of the country’s GDP, thanks to investments by international media giants and the global popularity of Nigerian music and cinema.

The Nigerian music sector has also flourished, with platforms like Spotify significantly increasing access to global audiences and contributing to the industry’s economic footprint. The success of Afrobeats, featuring artists like Burna Boy and Wizkid, has drawn international recognition, including Grammy awards, and contributed over $8 billion to the economy. This growth is supported by investments in new production studios, digital platforms, and the rising popularity of streaming services, which continue to reshape revenue generation through paid streaming and subscriptions.

The Nigerian digital music market has experienced impressive growth, particularly with increased access to streaming platforms. As of 2024, the market is projected to generate around $122.1 million, supported by a compound annual growth rate (CAGR) of about 6.9 percent expected to continue through 2027. This growth is largely driven by widespread mobile internet use and partnerships with telecommunications companies, which help make music streaming more accessible. Platforms like Boomplay, Spotify, and Apple Music are gaining strong footholds, with users able to subscribe through options like airtime billing provided by telecoms, making payments easier and more aligned with local consumption habits.

The Afrobeats genre, which has also seen exponential growth, was a major contributor to this expansion. For example, Spotify recently noted a significant increase in Afrobeats streams, with consumption soaring from 2 billion streams in 2017 to over 13.5 billion by 2022. Additionally, Nigerian artists like Wizkid, Burna Boy, and Ckay have achieved international recognition, boosting revenue through global streaming platforms and increasing their presence on streaming charts worldwide.

Nigeria’s Ministry of Arts, Culture, and Creative Economy is currently championing the “Destination 2030: Nigeria Everywhere” with the goal of establishing Nigeria as a global leader in the cultural and creative industries by 2030. The objective for this plan is to establish Nigeria as a soft powerhouse, highlighting the country’s rich cultural legacy and creative skills on a global scale. This plan aims to create two million jobs yearly and add $100 billion to Nigeria’s GDP through the creative industries.

Challenges

Nigeria’s media and entertainment sector faces persistent challenges with copyright piracy, which complicates efforts to monetize digital content effectively. Despite efforts to strengthen intellectual property laws, piracy remains a significant barrier to growth, impacting creators’ revenue and deterring potential investors. With widespread unauthorized distribution and infringement, Nigerian creators lose substantial revenue; estimates indicate that piracy could account for up to 40 percent in lost income for Nollywood alone. This issue affects a range of media, from music and films to books and software, with pirated copies openly sold across markets.

The Nigerian Copyright Act of 2022 has introduced key measures to combat this, including explicit protections for digital content and audiovisual works, stringent penalties, and the capability for copyright holders to request that internet service providers block access to infringing sites. The Act allows creators to enforce their rights against unauthorized reproduction, distribution, and access circumvention. However, to effectively curb piracy, Nigeria still needs stronger enforcement mechanisms and increased public awareness about intellectual property rights, as many users remain unaware of the consequences of illegal streaming or downloading.

Moreover, the rise of digital platforms has intensified competition for audience attention, requiring the industry to innovate continually. Digital streaming and social media have reshaped the industry landscape, increasing demand for diverse and high-quality content while putting additional pressure on traditional media businesses. In response, Nigerian media organizations are adopting new business models, like subscription-based services and DRM (Digital Rights Management) technologies, to protect content and retain customer interest in a market where streaming services are popular, but monetization remains challenging.

Nigeria’s media and entertainment sector faces considerable economic challenges due to the ongoing currency devaluation and high value added tax (VAT) rates, which impact subscription-based content providers and general media operations. Since Nigeria relies heavily on imports and services paid in foreign currencies, subscription platforms have struggled to meet rising content costs. MultiChoice, which owns DStv and GOtv, implemented multiple subscription price increases in response to these pressures, with the most recent hike in 2024 seeing rates rise by approximately 14 percent due to foreign exchange losses and escalating operational costs. The sector’s second-largest provider, StarTimes, similarly raised subscription costs in recent years to cover increased expenses related to the weaker naira and inflation.

Opportunities

The Nollywood industry in Nigeria is thriving, presenting multiple business opportunities that align well with U.S. expertise and resources. Nollywood is the second-largest film industry globally by output and is a substantial contributor to Nigeria’s GDP. U.S. companies can tap into several promising areas within this expanding market:

  • Cinemas in Underserved Areas: With rising box office revenues, especially in urban centres, opportunities exist to develop cinema infrastructure in underserved regions. This could help meet demand driven by Nigeria’s increasing middle class and cinema-going culture.

  • Digital Distribution and Streaming: The growing success of platforms like Netflix, Amazon Prime, and local players (Iroko TV, Showmax) demonstrates a high demand for digital content. U.S. firms could explore partnerships or invest in localized streaming services to distribute Nollywood films globally, creating a platform for exportable Nigerian content.

  • Capacity Building in Technical Skills: Nigeria’s talent pool is expanding, yet there’s a demand for formal training in areas like cinematography, animation, and visual effects. Establishing training centres or collaborating with local institutions to offer specialized skills can boost the quality of Nollywood productions.

  • Provision of High-Quality U.S.-Origin Equipment: Nigerian filmmakers often prefer U.S.-origin production equipment due to its quality and durability. There’s room for U.S. suppliers to enter the market for high-end filming gear, with opportunities to add value through training and after-sales support. Several Nigerian media/entertainment professionals have joined U.S. Commercial Service-led delegations to industry-related trade shows in the U.S.

  • Collaborations and Content Development: Social media collaborations and partnerships with Nigerian content creators for short films, series, and other media can help U.S. companies gain a foothold in the industry while supporting local talent. Moreover, U.S. investment in festivals and media tourism can increase Nollywood’s global visibility and promote cultural exchange.

  • Acquisitions and Financial Partnerships: Local studios and production companies are open to partnerships or mergers that bring financial resources and operational expertise. This support could help Nollywood studios scale up their productions to meet growing local and international demand.

In August 2023, the Ministry of Art, Culture, and the Creative Economy launched an ambitious plan targeting $100 billion in revenue annually from Nigeria’s creative industry, with aim to create two million jobs. This plan features an eight-point agenda to advance infrastructure, skills development, and international partnerships. It also includes supporting local creative hubs, enhancing data infrastructure, and boosting digital content production and distribution for various creative sectors, including film and music.

For further sector information, e-mail: Ambrose Thomas, Commercial Specialist, U.S. Commercial Service, Lagos, Nigeria at: Ambrose.Thomas@trade.gov