ENTERTAINMENT

In less than a decade, the Nigerian movie industry has grown to become the third most significant film production site in the world. With earnings estimated at $200million per annum, only Hollywood and India’s Bollywood studios beat the local film industry in terms of prolificacy. From unlikely beginnings in 1992, Nollywood, as it is now called, produces over twenty films each week.

These films made with minimal budgets- less than US$30,000 in most cases and meager advertising purses- and in a country with a low cinema culture have become very popular locally and abroad. In spite of the difficult production conditions in Nigeria, Nollywood movies have received critical acclaim and still remain immensely popular and accessible to all social strata of Africans unlike francophone film. The deceptively disorganized distribution networks with centres at Idumota in Lagos, Upper Iweka in Onitsha and Aba in Abia State have triumphed in penetrating foreign markets. These movies produced on cheap ‘VCDs’ often sell for less than US$2.

Although the size of the market is estimated, research has not been focused on the growth potential of the industry. Nollywood offers excellent investment opportunities for capital.

TransCorp recognizes the role that entertainment can play in national wealth creation and thus, development. This role goes beyond its primary role of providing leisure. For instance, Hollywood studios, and the satellite businesses that support that industry generate over US$25 billion annually for California, which is a significant contribution to its position as the fifth biggest economy in the world. In fact, the U.S movie industry generates more employment than any single manufacturing, sector, including chemicals, industrial equipment, electronics, textiles, food processing and aircraft. Similarly, in India, Bollywood, the Hindi movie industry based around Mumbai, has also played a significant role in generating employment, directly and indirectly, for millions on the subcontinent.

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