By Maryam Suleiman Yusuf

Exploring the industry’s rapid growth, rising budgets, and the financial pressures behind Nigeria’s film boom.

Nollywood, the second-largest film industry in the world, is widely known for comedies and dramas and has become a familiar name across Africa and among Nigerian communities abroad. It is the main hub of African movies, recognized for its high output and distinctive storytelling.

The industry employs many people and draws increasing international attention, especially through cinema releases and streaming services. However, behind its visibility, filmmaking in Nigeria is influenced by practical issues, where access to funding, electricity, and distribution often decide which stories are told and how far they reach.

Industry estimates suggest Nigeria produces well over 2000 films each year, making Nollywood one of the world’s most prolific film industries. The sector directly and indirectly supports hundreds of thousands of people and contributes a measurable share to the economy. Officials at the Ministry of Information and National Orientation regularly cite film as one of Nigeria’s most effective cultural exports.

“Nollywood has become one of the ways Nigeria tells its story to the world,” said a senior ministry official. “It provides jobs, projects our culture, and creates opportunities for creative talent across the country.”
Despite its scale, the industry faces mounting pressures.

For decades, Nollywood expanded through volume. Films were made quickly, on modest budgets, and distributed largely through DVDs and informal markets. That model has steadily weakened. Piracy eroded physical sales, while audiences, particularly younger, urban viewers, began demanding stronger storytelling and higher production values. Today, output is slightly lower than in its peak years, but budgets are rising, especially for cinema and streaming releases.

Recent releases showcase these trends, for instance, Toyin Abraham’s Oversabi Aunty performed well at cinemas, proving that local stories with relatable cultural themes can still draw large crowds. Meanwhile, Funke Akindele’s Behind the Scenes demonstrated how star power, bigger budgets, and extensive marketing can increase box office sales, though such investments also raise the risks for producers. These films highlight a broader pattern: audiences are willing to pay for quality, but only when production and marketing meet expectations.

Most producers believe that inflation and rising energy costs have reshaped the economics of filmmaking.  They cited that fuel, equipment rentals, locations, and post-production now consume a larger share of budgets than a decade ago. Projects that once relied on speed and improvisation must now meet stricter technical standards.

Financing remains a weak spot as most producers depend on personal savings, informal investors, brand partnerships, or advance payments from distributors. Commercial banks are still hesitant to lend, seeing film as a high-risk venture. Streaming platforms have become an increasingly important source of funding, offering upfront payments and access to international audiences.

“Streaming has brought structure and predictability that did not exist before,” said an official at the Nigerian Film Corporation. “But it has also shifted the balance of ownership in the industry, leaving producers with less long-term control over their content.

Distribution can also be said to be uneven as cinema infrastructure has expanded, and this has been primarily driven by private operators, but screens remain concentrated in major cities. Box office revenues have increased but represent only a fraction of potential national demand. Television licensing remains a significant revenue stream, though producers argue that fees lag behind rising production costs. Merchandising and branded tie-ins are still underdeveloped but offer potential for additional income.

The financial rewards remain concentrated on a small group of established actors, directors, cinema operators, and production companies, who capture most revenue. Writers, technical crew, and smaller producers often work without contracts, insurance, or predictable income. Industry guilds have called repeatedly for standardised pay and better working conditions, but progress has been slow.

Piracy continues to undermine profits when films are frequently leaked online within days of release, sometimes even before cinema runs end. While copyright laws exist, enforcement is weak, and prosecutions are rare. For many producers, piracy shortens the commercial life of their films and discourages investment.

Despite the challenges faced by the industry, Nigerian films and series now appear regularly on major streaming platforms and international festival line-ups. The African diaspora has become a key audience and, in some cases, a source of financing and co-production opportunities. Some titles have found success abroad, while others have struggled—films like The Wedding Party sequels have done well internationally, but others fail to translate due to cultural or technical gaps.

Another persistent limitation is that power shortages increase costs and slow production. Studios are few, often requiring filmmakers to convert residential spaces into sets. Post-production capacity has improved, but high-end work is still frequently outsourced. Cinema growth has lagged population expansion, particularly outside Lagos, Abuja, and Port Harcourt.

Even though training and professional development are uneven, Nigeria has film schools and workshops, but these do not meet industry demand. Skills gaps are most notable in screenwriting, directing, cinematography, editing, and film business management. Many practitioners still learn informally, repeating avoidable mistakes rather than benefiting from structured training programs.

Looking ahead, streaming platforms are expected to dominate Nollywood’s revenue in the next decade, while cinemas focus on fewer, high-profile releases. Social media and digital platforms are also opening new paths for emerging creators, though monetisation remains uncertain.

Stakeholders argue that the industry’s next phase of growth will depend on stronger foundations. Recommendations include better copyright enforcement, improved access to finance, more reliable infrastructure, and sustained investment in training. Government agencies have announced support schemes, but implementation has often been inconsistent.

“Nollywood has the talent and the audience,” the Nigerian Film Corporation official said. “The challenge is building the systems that allow that talent to thrive sustainably, and that requires commitment from all players—government, producers, streaming platforms, and education institutions alike.

Nollywood has already shown that Nigerian stories can resonate far beyond the country’s borders. Whether the industry can now build the structures needed to support those stories financially, technically, and professionally will determine how far that success can go.