Though Nigeria faces poverty and inflation, cinema attendance in the country jumped 60% in 2024, with box office ticket sales reaching ₦11.5 billion. More so, the Nigerian movie industry, Nollywood, ranks second in worldwide film output, just behind India. These factors are giving it global relevance and boosting recognition massively.
Asset managers, MBO Capital, was recently in touch with Nigerian film stars to explore investment options in Nollywood.
Investors like the MBO have become increasingly attracted to the need for post-production licensing after Netflix and Amazon Prime stopped commissioning new Nigerian originals.
The sudden pullback inadvertently created a financing gap for Nollywood and an attractive investment space with lower risk for financiers.
Capital & Investments in Nollywood
With guaranteed streaming contracts, firms like MBO Capital structure deals using equity and debt. A $500,000 investment can yield around 30–40% returns on the equity portion, thanks to Nollywood’s low production costs.
Expansion has also become a stable feature in Nollywood. Nigeria’s entertainment and media sector is expanding at approximately 8.6% annually. PwC forecasts its value will rise to $13.6 billion by 2028, up from roughly $9.6 billion in 2023. About half of that value will come from movie ticket sales.
MBO, Financing Players & Film Slate
MBO Capital has financed 10 films for Amazon Prime, including titles like Gangs of Lagos, Kill Boro, and The Wedding Party 2. They plan to finance nine more in 2025. Despite comedies performing well, MBO believes compelling narratives drive long-term success.
Recognizing the industry’s structural funding gap, Chapel Hill Denham launched a US$1.2 million initiative supporting entertainment and media. About 35–40% of that fund is earmarked for film projects.
Opportunities & Challenges
The majority of Nollywood films remain self‑funded, relying on producers’ personal resources. Institutional financing models are only just emerging.
Though private capital can provide financial discipline and guidance, some caution that risk-averse structures may limit creative experimentation. Filmmaker Obi Emelonye argues further experimentation is needed before solid models emerge.
