The media and entertainment industry in Nigeria, namely Nollywood, was established in 1992. It is considered the second most prominent film industry worldwide. The Nollywood industry is a globally acclaimed stature and brand for popular film practitioners, including the ones working with script writing, sound, acting, directing, cinematography, and editing. The industry was valued at $6.4 billion in 2021 and is expected to witness growing trends in the coming years. The music and gaming sector, one of the eminent parts of the entertainment domain, is also anticipated to experience growth in recent years.
The PwC Global Entertainment and Media Outlook (2020-2024) claims the media and entertainment industry to be one of the fastest-growing innovative industries in the world. The projected annual growth rate in terms of the country’s export accounted for 8.6 percent, with a CAGR of 19.3 percent from 2018 to 2023.
A lot has changed within the Nigerian gaming perspective in recent years. The gaming industry has witnessed a rapid expansion benefitting from the large youth population with improved internet penetration and increasing access to virtually enabled services. The future of gaming trends in Nigeria focuses on growth prospects and economic rebounds. Various changes influence the highlighting trends in the gaming landscape. Similarly, the introduction of no deposit bonuses and several other types of bonuses targeting Asia countries. All these changes really helped the Nigerian casino industry. With these no-deposit codes, players can enjoy their favorite games without risks. The online guides helped players allowing them to learn more about games easily as well. Stricter regulations and the improvement in online availability also increased the number of users when it comes to online games.
Business opportunities
Various opportunities in the Nollywood industry focus on the opening of cinemas in cities with the use of digital distribution, script writing, directing, building the usage of cinematography, and movie production tools. Including the US companies in the domain plays a significant role for Nigerian importers and exporters. Some of the severe opportunities for the US companies in the industry include:
- Origination of consultancy services for improving penetration and expanding the reach of content and virtual happenings of media.
- Origination of training facilities with engagement in animations, technical skill development, and visual effects.
- Origination of division and rental business for trending technology vital for the production by participants.
- Video streaming platform along with exportable content.
- Regular collaboration with universal film producers for media tourism and film festivals.
- Mergers focus on acquiring national players in search of financial assistance with other resources to leverage growth.
Nigerians are pretty well prepared to partner with some of their US counterparts. The US and Foreign Commercial Service, situated at the US Consulate General, Lagos, is the primary front-line trade agency in the country. The place offers a professional team of Nigerian specialists and American commercial officers ready to trade with US companies interested in the market. Some of the promising opportunities in Nigeria for US exporters include the following sectors:
- Agricultural products and services, tools and equipment
- Aerospace– aircraft services and parts
- Automobiles, automotive parts, trucks, buses, and accessories
- Construction services and earth-moving tools
- Computer hardware and software
- Education, profession, and training
- Power generation and electricity
- Franchising
- Medical equipment and healthcare services
- Security and safety equipment
- Oil and gas-related equipment
The Government of Nigeria (GON) has taken some primary steps to grow in the entertainment industry:
Creating Creative Industry Financing Initiative: The collaborative element in CBN with the Bankers’ Committee developed a loan scheme titled the Creative Industry Financing Initiative or CIFI. This increases youth employment and includes four pillars: music, film, fashion, and information technology. The initiative states that film production businesses can avail of a loan of up to 30 million. Meanwhile, the film distribution sector can afford up to $1.2 million in financing. The repayment is pretty flexible over 3 to 10 years, acquiring a single interest rate of 9 percent p.a.
Internet Penetration Rate: The low internet connectivity level hampers various businesses’ digitization. In response to this, the Nigerian Communications Commission formulated some laws and guidelines to increase internet penetration. These services are pushed through licensed infrastructural companies with other initiatives to elevate internet accessibility by Nigerians.
Fiber Optics Deployment: The Government of Nigeria, along with state governments, is compelling some effort in improving the fiber optics deployment. This will improve the overall connectivity while enhancing digital streaming platforms and entertaining content.
Discussion about this post