N15bn investments signal rebound of Cinemas in Nigeria

As the resilient Nigerian entertainment industry worth over $4 billion continues to attract investors, things are looking up in the cinema sub-sector, which attracted over N15 billion investments in big screen business across the country in the past decade.

According to BusinessDay’s investigations, Silverbird Cinemas, the pioneer of the investment, the Filmhouse Cinemas, and Genesis Deluxe Cinema, among others, have invested billions of naira in the big screen business in the last 10 years, while developers of mega shopping malls are boosting cinema growth with at least one cinema in a mall.

The investigations also revealed that the growing investment is fuelled by a rebirth of cinema culture, especially in major cities across the country due to a growing middle-class with willingness to spend.

Another reason for the growth is premiere of high budget movies in cinemas as a measure against piracy by most Nigerian filmmakers, while operators of mega malls use cinema offering to further woo patronage.

Clement Onyeka, a film critic, said the growing cinema viewership is not far from the fact that Nollywood has improved on the quality of films it produces.

“We are happy that Bank of Industry, Nexim Bank, among others are now financing big budget Nigerian movies.  But the only way to assure these banks return on their investments is through film premiere in cinemas. If not, how do you expect high budget movies such as ‘Half of a yellow sun’ a movie, an adaptation of Chimamanda Ngozi Adichie’s novel that costs $US9 million, ‘Figurine’, about N10 million, ‘Last Flight to Abuja’ about N20 million, among others, to pay?” Onyeka asked.

For him, the country needs more cinemas to ensure that its film industry truly survives amidst fierce international competition.

Onyeka said since most movies released in recent times are high budget films, such as ‘Fifty’, ‘Road to Yesterday’, ‘The Visit’, ‘Taxi Driver: Oko Ashewo’, the cinemas will have more movie premiere and fresh offerings that will sustain visits to cinema houses across the country.

Nigeria’s arts, entertainment and recreation sector grew by 8.41 percent year on year in real terms in the first quarter of 2016, outpacing total GDP growth from all sectors, which contracted by 0.36 percent.

With eyes on good returns as the sectors continue to grow, some investors, especially in the entertainment industry, are now responding by pulling resources together to build cinema facilities in places of high demand such as Lagos, Abuja, Port Harcourt, among others.

Harold Igbenusa, a building and project management consultant says it takes about N200,000,000 (two hundred million naira) to build a standard cinema, and about N50 million to establish, including standard big screens, rights and technical partnerships.

But as high as the cost of building a cinema and technical partnership are, the high return on investment in the business, according to Igbenusa, is wooing most of the recent investments in cinema business.

It was the impressive return, according to him, that made Silverbird Cinemas, which started in 2004 with its Victoria Island Lagos outlet to expand beyond Nigeria’s borders.

With over 10 cinemas, 50 screens in Lagos, Abuja, Port Harcourt, Uyo, and two in Ghana, Silverbird Cinemas is currently the largest cinema chain in West Africa.

Following the success of Silverbird, the Filmhouse Cinemas- a new entrant- is making waves with 8 cinemas across the country, especially in Surulere, Dugbe Ibadan, Calabar, Samonda Ibadan, Kano, two in Asaba, and others, in the pipeline.

Yet, Filmhouse Cinemas Limited, which prides itself as a dynamic film exhibition company with a vision to be the foremost cinema brand in Nigeria, is currently implementing a strategic development plan to roll-out 25 cinemas over a six-year period that commenced in December 2012.

At the same time, Genesis Deluxe Cinema, another indigenous cinema company, is furthering the entertainment bouquet for cinema lovers across the country with its Lagos, Enugu, and Port Harcourt cinemas.

Explaining the rationale behind the sudden goldmine cinema has become, Ademola Martins, sales director in a cinema company, said beside the upgrade in cinema facilities that has made cinemas more welcoming to viewers, the attitude of cinemas operators, and their business models have changed.

Martins further disclosed movie premieres grossed over N2 billion last year for both cinemas and movie owners, a figure he said would improve if more high budget movies are produced and shown in cinemas.

“We now have a situation where going to cinemas is fun for everyone and even foreigners here because there is no difference with our cinema here and the one they patronise in London. Probably, the difference may be the genre of movie on offer here, but security, the environment, service, easy payment option and refreshment are first-class,” Martins explained.

A staff of Silverbird Cinemas, who pleaded anonymity, however, noted that as the cinemas are growing, there should be control to ensure standards are maintained because most people would like to invest in the business just for the profits not minding technical and maintenance concerns.

OBINNA EMELIKE