Nigerian Entertainment Sector Hits Record High, Adds N728.80 Billion to Economy in Q1 2024

Nigeria’s arts and entertainment sector contributed N728.80 billion to the national economy in the first quarter (Q1) of 2024.

This represents an increase from the N576.67 billion recorded in Q1 of 2023 and the N382.37 billion reported in Q2 of 2023, according to data released by the National Bureau of Statistics (NBS).

The robust growth throws more light on the expansion of Nigeria’s movie, music, arts, and entertainment industries, which have collectively grown by 152.79% year-on-year over the past decade.

From a GDP contribution of N288.31 billion in the first quarter of 2014, these sectors have burgeoned into a major economic force, reaching N728.80 billion as of Q1 2024.

NBS aggregates figures from revenues generated by movie and sound recording productions, including earnings from TV rights, royalties, and fees.

This comprehensive data collection highlights the sector’s burgeoning impact on Nigeria’s broader services sector, which has become a pivotal contributor to the country’s overall GDP.

“The top five sectors driving Nigeria’s growth include arts, entertainment, and recreation, along with information and communication, construction, accommodation and food services, and water supply, sewerage, waste management, and remediation,” said Afolabi Olowoookere, Managing Director and Chief Economist at Analysts’ Data Services and Resources.

“The arts and entertainment sector, in particular, has been a cornerstone of the nation’s economic development during this period.”

The Nigerian entertainment scene has benefitted from a surge in new content driven by increased investments, a burgeoning cinema culture, and the rise of streaming services.

The global popularity of music genres like Afrobeats has also significantly contributed to the sector’s growth.

Google’s Communication and Public Relations Manager in West Africa, Taiwo Kola-Ogunlade, emphasized the global appeal of Nigerian content. “Africa’s biggest export is content,” Kola-Ogunlade stated. “We just need to ensure that our creatives and storytellers are telling amazing stories.”

The sector’s success has been further bolstered by substantial investments from major players.

Netflix, for instance, disclosed that it had invested over $23 million in the Nigerian film industry over the past seven years, supporting 5,140 jobs and over 250 local licensed titles.

This investment contributed $39 million to Nigeria’s GDP, $34 million to household income, and $2.6 million to tax revenue.

Cinemas in Nigeria have also experienced significant growth, generating N18.92 billion in revenue over the past three years.

The box office hits between 2021 and 2023, such as ‘A Tribe of Judah’ and ‘King of Boys,’ have grossed over N1 billion, showcasing the industry’s financial viability.

“The sky is the limit for Nollywood as long as investors continue to support our stories,” said Kelvin Obasuyi, Managing Partner at 56 Capital and an Oxford alumnus.

Despite the economic challenges facing Nigeria, the outlook for the entertainment sector remains positive.

PricewaterhouseCoopers (PwC) identified Nigeria’s media and entertainment industry as one of the fastest-growing creative industries globally in its Global Entertainment and Media Outlook for 2022-2026.

PwC projected an annual consumer growth rate of 8.8% for the sector and highlighted its potential to significantly increase export earnings, which it estimates will soon reach $1 billion.

“The Afrobeat genre of Nigerian music has created a global fear of missing out (FOMO),” said Bemigho Awala, a documentary filmmaker. “Even as our artists sell out venues abroad, Nollywood films are achieving impressive numbers locally and on streaming platforms.”

With continued investment and support, the Nigerian arts and entertainment industry is poised to maintain its upward trajectory, further solidifying its position as a major economic driver in the nation.