The Nollywood industry is optimistic about 2025, predicting growth in the theatrical sector and increased box office revenues.
This outlook is fuelled by Funke Akindele’s 2024 theatrical success, demonstrating the country’s potential for significant box office earnings.
Experts believe that strengthening the theatrical sector and expanding distribution networks will be key to Nollywood’s growth in 2025. Additionally, the government’s support for community cinemas in rural areas is expected to enhance the industry’s reach and revenue.
The streaming landscape for Nollywood experienced major shifts in 2024. Prime Video reduced funding for African and Middle Eastern projects, limiting the commissioning of new Nigerian content. Showmax relaunched with a focus on original African content, while Netflix clarified that it would no longer commission Nigerian films, although it would continue licensing them.
These shifts have highlighted the evolving relationship between Nollywood and streaming platforms. Other notable developments include: Nile Media Entertainment’s expansion into cross-regional distribution, the government’s community cinema initiative, and YouTube’s rise as a platform for film releases.
Outlook for 2025
Industry experts say cinema revenue will be key to Nollywood’s success in 2025. In 2024, Nigerian cinemas raked in N11.5 billion from movies, driven by successes like ‘Everybody Loves Jenifa,’ which made N2.8 billion.
Mautin Tairu, a talent manager in Nollywood, said: “Given the exit of Amazon Prime and Netflix’s content acquisition strategy change, there has been a significant improvement in cinema attendance and revenue generated.
“With Nollywood being the second largest industry in production value, I predict an upward trajectory, and this is backed by NBS and PWC reports that the Nigerian creative industry, with Nollywood as a focal point, will contribute greatly to GDP in 2025. I believe this is true because there is a rising demand for our content, and there will be a rising number of exportable films produced in 2025.”
Ojie Imoloame, co-founder of Offering Basket, emphasised the potential of a strengthened theatrical sector. He predicted a resurgence of cinema attendance and a renewed focus on distribution strategies among filmmakers.
He also pointed to the government’s 2024 initiative to waive licensing fees for community cinema investors, which he believes will boost cinema revenue nationwide.
However, experts equally believe that Nollywood needs to create more peak periods to break new grounds. December is the month that generates most of the year’s box office revenues. In 2024, FilmOne revealed that December was the highest-grossing month, drawing in N2.8 billion.
Imoloame emphasised the need to create more peak periods for box office revenue beyond the December holiday season. He suggested that the industry should strategise to replicate this success during Easter and summer, ensuring consistent high-earning periods throughout the year.
Tairu, earlier quoted, emphasised the importance of understanding the diverse audience for each film, which can be achieved by identifying their needs and preferences. This knowledge allows filmmakers to tailor their marketing strategies and release schedules accordingly, capitalising on other peak periods like Easter and summer holidays.
He recommended pre-planning release dates and executing coordinated marketing campaigns to generate anticipation. He also advocated for dedicating at least 30 percent of the film budget to marketing to ensure a solid return on investment. Tairu stressed the importance of careful execution of marketing strategies, utilising data insights to ensure that the movie at least breaks even at the box office.
Global expansion, international reach
James Amuta, a renowned Nollywood filmmaker, in a comment on the future of Nollywood after Netflix funding pullback, raised concerns about the industry’s penetration into global markets, questioning whether Nollywood films generate enough revenue from cinemas in Europe, North America, and Latin America.
Funke Akindele’s ‘Everybody Loves Jenifa’ made history as the first indigenous Nollywood film to earn over $327,000 internationally in 22 days. Other Nollywood releases, such as Omoni Oboli’s ‘Wives on Strike: The Uprising’ and Ayo Makun’s ‘The Waiter,’ have also secured international distribution.
With major Nollywood releases, including ‘King of Boys 3: The Beginning of the End,’ expected in December 2025, diaspora earnings are projected to reach $600,000 if distribution expands to more countries and cinemas.
Amuta emphasised the need to focus on producing marquee films that resonate with international audiences, not just streaming platforms, to expand Nollywood’s global reach.
Read also: Nollywood’s 12-month haul sets stage for 2025 success
YouTube and streaming
Following the pullback of Netflix and Amazon Prime, Imoloame, earlier quoted, encouraged local streaming platforms to capitalise on the opportunity by promoting their services more aggressively. He suggested that local platforms could aim for up to a million subscribers, leveraging Nigeria’s growing internet penetration.
Nigeria had around 134 million mobile internet subscriptions as of July 2024, with broadband penetration at 42.24 percent. Imoloame sees this as an ideal opportunity for local streaming services to thrive.
Experts also note the growing importance of YouTube for Nollywood filmmakers. YouTube has become a platform for generating additional revenue, bypassing the complexities of traditional cinema distribution and securing licensing deals with streaming services. Filmmakers like Kunle Afolayan have embraced YouTube as a viable option for releasing films and diversifying income streams.
Femi Odugbemi, a renowned Nigerian filmmaker, expressed optimism about the industry’s future. He noted that, for the first time, regulatory bodies in Nigeria’s creative sector are led by industry experts with a clear vision. He also highlighted that while financial backing is important, innovation, collaboration and sustainable institutions are equally crucial for Nollywood’s success.
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