According to a recent report, the entertainment sector in Nigeria is set to contribute $105 million to GDP in 2023. Chief Kingsley Okafor detailed the forecast during his lecture at the 10th anniversary of the Great Ekenhuan Alumni Association and emphasized how this thriving industry will be hugely important for job creation and the economy in the country. Nigeria is swiftly cementing itself as one of the leading countries in Africa for entertainment.
What are the Key Contributors to the Entertainment Economy
As internet penetration in Nigeria has steadily increased over recent years, a few key contributors to the entertainment economy have emerged. One of the primary uses of the online world is for gaming, with over 65 million Nigerians interested in gambling. Indeed, Nigeria is already the largest betting market in Africa, and this spans from sports to casino games. Many casino online providers are now targeting players in the country with offers and promotions, such as a 100 percent deposit match for new players. There are also live casino games like Safari Riches Daily JP that are aimed at African audiences. Currently, most online casino players in Nigeria log on to sites based in other countries, but there’s clearly potential here for Nigerian sites to rise up and benefit from this bustling market as well.
The film industry is another notable source of revenue for the entertainment industry in Nigeria, with Nollywood now the second-largest film producer in the world. Indeed, it produces more than 2500 movies every year, which is only surpassed by Bollywood in India. While it may not earn as much or have as many famous offerings as Hollywood, Nigeria’s film industry is on the ascendancy and has an average annual revenue of $1.2 billion.
It’s incredible to think that this sector only emerged in 1992 and has risen to this stature in such as short space of time. In 2016, it contributed more than 2.3 percent to GDP in the country, and that figure has risen since. Nollywood has been helped greatly by the rise of streaming services like Netflix, which have given more exposure to content from Nigeria on the global stage. Now, viewers from countries all over the world can enjoy offerings like The Black Book and Lionheart, and Netflix is giving more money to Nigerian studios to make more great titles.
A trailer for The Black Book on Netflix.
The music industry is the other key area of entertainment that is helping Nigeria make a name for itself. There are a few Nigerian stars now that have garnered international acclaim, including Burna Boy and Wizkid. The former was ranked by Rolling Stone at number 197 in its list of the 200 greatest singers of all time, while the latter managed to reach number one on the Billboard World Album Chart with Made in Lagos in 2020.
Nigeria’s Economic History in Entertainment
The entertainment industry has contributed to the Nigerian economy to a small extent over the past few decades, with oil being one of the main sources of income for the nation. However, thanks to the rise of the internet and the growth of the entertainment industry, there’s huge potential for it to start generating a much greater amount of wealth.
The estimated value of Nollywood is $6.4 billion, and it generated more than $1.8 billion in 2020. This figure is set to rise, as the film industry is one of the fastest-growing employment sectors in Nigeria with more than one million people working in it already. The television and video market is also on the ascendancy, and it’s projected to earn approximately $900 million in 2023. Most of this is generated from subscriptions, with the streaming era now in full flow across Nigeria.
The online gaming sector hasn’t generated much wealth for Nigeria to date, but this is because it has only recently begun to exist in the country. If it follows a similar trajectory to countries in the West and the government manages to harness its potential, it could be worth billions in the years ahead. The music industry is worth around $44 million in Nigeria in 2023, with Nigerian artists finding that Spotify is a great platform for them to get recognized. Wizkid, for example, already has more than 4.6 billion streams.
The music video for Essence by Wizkid.
How Does the Future Look in 2024 and Beyond
The potential for growth in Nigeria is enormous. In 2023, the internet penetration in the country stood at around 55.4 percent. As this figure increases, more people will get online and seek entertainment experiences. The online world has already brought about global integration and allowed Nigerian artists and filmmakers to gain more international recognition. This is set to continue, and there are likely to be more collaborations with western studios and record labels.
Imminent technological innovations are also going to play a significant part in the evolution of the entertainment sector in Nigeria over the next decade. Virtual and augmented reality are expected to blow up within the next few years, and these platforms could lead to fresh forms of entertainment. Companies like Meta want to create VR worlds in which people socialize and work. If this comes to fruition, it could mean more work opportunities for Nigerians.
For the entertainment industry to become truly prosperous, it will require some more policy and infrastructure development. Nigeria will have to look at other countries in the West, such as Canada, and replicate the methods that have worked well for them. This includes funding and tax breaks to support the creative sector.
There’s no doubt that the entertainment industry in Nigeria could be becoming an economic force. It has already contributed a small amount to GDP in the years before the internet, and the spread of online access will accelerate it more over the next decade.
