Nigeria has one of the fastest-growing entertainment and media (E&M) sectors globally, with Nollywood and the music industry leading. It has a compound annual growth rate (CAGR) of 8.6% and it’s expected to grow with the various forms of technology boosting its accessibility.
The entertainment industry in Nigeria has embraced digital technologies similar to other businesses, and they enjoy the convenience that comes with it. An example of an industry fully embracing digitisation is online gaming platforms such as live88.io.
Additionally, the Copyright Act of 2022 aims to protect all digital works. It tackles piracy and ensures the work aligns with global best practices. Nollywood also ranks as the second most productive in the world, with an estimated 2,500 movies released every year.
The music sector is also diverse and represented internationally by artists such as Davido and Wizkid through addictive sounds known as afrobeats, hip-hop and afro-fusion.
Price Waterhouse Coopers (PwC) estimates that the Nigerian E&M industry will generate around 12.1 billion Euros in revenue by the end of 2025. Already by 2023, the entertainment industry had contributed around 96 million euros to Nigeria’s GDP.
Possible Directions in 2025
The Nigerian entertainment industry has witnessed exponential growth in the last decade. Here are some factors that are likely to contribute to and continue the growth in investment in 2025 and beyond.
1. Better Mobile Services
In Africa, entertainment and media are driven by mobile services due to the low penetration of broadband. To sustain connectivity, there must be an expansion of 4G and 5G networks.
It’s expected that by 2026, 4G will overtake the 3G network in Nigeria. Social video is the main growth driver in the video sector through platforms like Instagram and TikTok.
In Nigeria gaming is also taking a significant portion of data. Online gaming has grown over the years as we see some of the finest gaming platforms using the most sophisticated online blackjack software. The shift towards mobile and digital platforms has been widely embraced in Africa.
2. Growth in Binge-Worthy Entertainment
There has been a rise in the popularity of platforms such as YouTube with some series and movies. Platforms such as YouTube offer viewers some free web-based content, and there’s likely to be more fresh content coming from these platforms with short films and series for people to enjoy.
These platforms are likely to become more popular as they allow new content creators to bypass the traditional systems by connecting with viewers directly.
In 2025, binge-worthy entertainment will continue to grow as people enjoy the diversity these platforms provide. Creators also no longer have to worry about finding their next big break as they focus on creating global followers to monetize their work.
3. More Diverse Afrobeats
Afrobeats are Nigeria’s signature in the music industry. In 2024, they were a great cultural export for artists such as Burna Boy and Tems as they collaborated with some of Hollywood’s best.
In 2025, there’s likely to be more diversification, and the influence of this music will expand. New genres are also likely to be born as more artists around the world infuse Nigerian sounds into their music.
These collaborations will give rise to creative freedom, meaning more flexible contracts will be needed to ensure record labels stay in business.
4. Global Collides with Local
Local has become the new global as we see some Nigerian films trending globally and also on platforms such as Netflix. People are likely to enjoy more films that are rooted in Nigerian culture as they learn all about it. More platforms, such as Showmax, are likely to invest in localised Nigerian stories to share with the rest of the world.
Platforms are likely to invest as they enjoy the authenticity of the productions depicting Nigerian culture. They’re likely to be producers negotiating terms that maximise royalties for creators. Creators will also work with international consultants to refine their storytelling for a more global appeal.
5. The Combo: Entertainment and Web3
In 2024, blockchain technology and NFTs gained popularity, and there’s likely to be a much wider adoption of these two. These systems can be used to ticket concerts or even create exclusive content. Web3 can empower entertainers to bypass traditional Gatekeepers to connect directly with their fans.
Since the legal framework of these is still unclear as the technologies evolve, lawyers will be tasked with drafting agreements that can cover any revenue streams generated.
6. An Evolution in the Influencer
Brands will prefer to work with creators with values that align with their companies. This means that the brand should focus on quality rather than quantity to avoid cases of public backlash.
Such partnerships will be approached with caution by most investors to ensure all ethical guidelines are followed. This means they will focus on ensuring that these campaigns enhance both the brand and the influencer.
7. Bigger and Better Live Experiences
Live concerts are likely to be bigger, more tech driven and highly massive. These concepts are likely to use technologies such as augmented reality (AR) and virtual reality (VR) to create real-time audience participation.
Some of the biggest artists are likely to be sold out in seconds, considering that people can use technology to purchase their tickets. On the other hand, platforms such as Spotify have had high numbers of people streaming and it’s reported the highest record being Nigerian artists.
8. A Growth in Internet Advertising
Advertising is an essential element for any industry. Internet advertising has become exceptionally popular in Nigeria due to the increased internet accessibility and digital platform adoption. This trend is also likely to grow within the entertainment industry.
Internet advertising is likely to lead, with ad spend that’s already accounting for 68% of total revenue.
FAQs
What is the compound annual growth rate (CAGR) of the entertainment industry?
Currently, as of 2025, the CAGR of the Nigerian entertainment industry is 8.6%.
What is the estimated amount to be generated by the entertainment industry by 2026?
The entertainment industry is expected to generate around 12.1 billion euros by 2026.
What has driven the growth of the entertainment industry in Nigeria?
Source: Channels TV
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