By ROBERTS ORYA
“Nollywood is getting set to take over the world. I recognize the
role of entertainment in the Nigerian economy and this government will
support an industry that makes Nigerians happy. I have given them direct
order to make sure entertainers have $200 million worth of loan to work
with. Make more movies, write and produce more hit songs, provide jobs
and give hope to our people.”
- President Goodluck Jonathan
It bears similarity to Hollywood. A number of Nollywood actors and
actresses are destined to superstardom before they attain their middle
age. It is not about instant fame and fortune, but by sheer productivity
and masterful performances, actors and actresses become veterans before
they attain the golden age. Musicians even tend to operate across
generations. The reason for this is that the entertainment industry
does so well in harnessing the power of youth. A lot is feared about the
demographic structure of Nigeria, for now and for the future. By
current estimates, the Nigerian population has over 100 million people
under the age of 45. Will this army of young people find gainful
employment today? If they don’t, how are they to vent their energy?
From, say the year 2054, when the potential demographic dividend of
today will yield to something of an inverted pyramid population
structure, what percentage of private and public resources would be
required to support the pension system and care for the aged?
First, let’s take a close look at the last question. Most artistes
across the genres of entertainment are early starters. They start to
contribute to the GDP at a relatively young age. Their careers prop a
broad range of economic activities that define the entertainment
industry value chain. Because artistes remain economically active in
their old age, and some of their past works gain even greater value much
later, they’re hardly any burden on government or society. Instead,
they keep both together happily. Furthermore, outside of policy-making
and regulating the industry, entertainment is a sphere of activities for
the private sector. It is not a place where huge pension liabilities
will accrue to the government. Therefore, the growth of the
entertainment industry does not pose corresponding additional burden on
fiscal management.
Indeed, the entertainment industry has been growing in leaps and
bounds in the last decade. Nollywood has risen to number two position
(behind India’s Bollywood) in the global film markets, in terms of
volume of production. In revenue, Nollywood is third, behind Hollywood
and Bollywood. Nollywood produces about 50 movies per week. Current
estimates put its annual revenue at an impressive $590 million. Africa
Renewal, a publication of the United Nations, reported in its May 2013
edition, that the African film industry (in which Nollywood is by far
the dominant), would contribute significantly to the expected 5.2% GDP
growth projection for the continent last year. Euromonitor International
and Reed Exhibitions, the organisers of the World Travel Market, a
global event for the travel industry, were cited by Africa Renewal
saying that the Nigerian film industry will continue to drive domestic
and regional tourism.
The entertainment sector is job-rich. It is now reputed to be the
second highest employer of labour in Nigeria after agriculture.
Characteristically employing pools of young people with diverse skill
sets, the Nigerian film industry alone currently employs more than one
million people. In the earlier part of its history, Nollywood struggled
to attract the interest of funders. It basically relied on angel
investors and personal finance of a few people within the industry to
maintain production. Then, its distribution infrastructure was hijacked
by pirates and other agents of unauthorised distributorship. Today
however, the industry is raising a new breed of savvy entrepreneurs
whose exploits have internationalised the movie industry. One of them is
33-year old Jason Njoku of Iroko Partners, who was recently listed by
Forbes as one of “top 10 young African millionaires to watch.” His firm
with offices in Lagos, London and New York, distributes Nollywood and
Ghanaian films and music. Seen as Africa’s version of Netflix,
Iroko Partners attracted further $8 million in funding last December to
boost its on-demand video platform and drive it toward profitability in
2015.
With the rising funding profile, several Nigerian actors and
actresses have starred in international films. Some Nigerian films have
been shot in exotic locations outside the country. One of the
exponents, Genevieve Nnaji has been a guest on the Oprah Winfrey Show.
Omotola Jalade-Ekeinde is currently a Goodwill Ambassador of the United
Nations. In the music sphere, Femi Kuti has received two nominations for
Grammy Award, while 2Face Idibia and D’banj are winners of MTV Music
Awards. Around Africa, Europe and America, Nollywood actors and Nigerian
musicians are showcases of the abundance of raw talents in Nigeria, and
how we are a people that is up and doing. Africa Magic channel on DSTV
(Digital Satellite Television) is about the magic of the Nigerian
creative zest and industrial capacity; no pun intended.
Less than a decade ago, it was almost unthinkable that a local
Nigerian musician would collaborate with international stars. Today,
such collaborations are commonplace. U.S. mega stars Kanye West and
Snoop Lion have worked with D’Banj and Don Jazzy, while
Senegalese-American star Akon has signed Tuface Idibia, P-Square and
Wizkid as the African representatives of his record label, Konvict
Musik. Apart from signing a lucrative deal with Sony Music
Entertainment, D’Banj’s was recently unveiled at the African Union
Summit in Addis Ababa as the Ambassador for ONE Campaign, an advocacy
that calls on African governments to commit at least 10 per cent of
national budgets on agricultural investment.
Nigeria’s kings of comedy, Ali Baba, Basketmouth, Julius Agwu, AY,
among others are also celebrated across Africa and beyond. Basketmouth
and Julius Agwu have individually organized sold-out shows at the O2
Arena, United Kingdom. Apart from having sold-out performances at home
and abroad, video and audio recordings of comedy shows have also become
huge sources of revenue for these comedians. Nollywood bubbles with
the energy of youth. The predominant genre of the Nigerian music ruling
our airwaves is youthful. That means perfect symmetry with the huge
Nigerian youth population. The population universe of 170 million people
provides a big market for retail of entertainment products. At the same
time, businesses tapping the huge Nigerian consumer market, especially
the mobile network operators (MNOs) and food & beverage, are
propelling Nigerian entertainers to new levels of financial success with
incomes from endorsements, Caller Ring Back Tones (CRBT), etc. In
effect, Nigerian youths have the right motivations for success in the
examples of the stars that grace our television sets and rule our
airwaves.
When cinemas arrived in Nigeria, much of the movies that moviegoers
were treated to came from Hollywood, Chinese and Indian films. However,
over the last decade, Nollywood films have become staples of Nigerian
cinemas. This experience has further deepened the cinema culture in
Nigeria as Nollywood film producers and directors, with considerable
investments in both equipment and training, have significantly improved
the quality of Nigerian films. The Nigerian entertainment industry has
invalidated the excuse of poverty as a reason for the youth to operate
in the underworld. Many music stars and comedians have emerged from poor
neighbourhoods, including Mushin and Ajegunle suburbs of Lagos. We
therefore hope that the demographic dividend that is associated with the
Nigerian population structure will be realised. The threat of a large
youth population, which will turn against the larger society because of
lack of the right motivation and opportunities, therefore diminishes.
Presidential vision
It is to the credit of President Goodluck Jonathan that he made the
connection with the entertainment industry as early as 2010 when he
succeeded late President Umaru Musa Yar’Adua. On November 6th of that
year, he announced an intervention fund for the entertainment industry.
He expressed his vision for the industry and commitment to growing it
with these words: “Nollywood is getting set to take over the world. I
recognize the role of entertainment in the Nigerian economy and this
government will support an industry that makes Nigerians happy. I have
given them direct order to make sure entertainers have $200 million
worth of loan to work with. Make more movies, write and produce more hit
songs, provide jobs and give hope to our people.”
This show of foresight, and the consequent recognition of the body of
artistes by Mr. President, with the audience he granted the industry
stakeholders, was thought to be an election gimmick ahead of the 2011
presidential election. Assuming that was the case, it would mean that
the youth, given their visibility in the entertainment industry and
their career successes, have become a critical bloc in the Nigerian
political calculus.
However, soon after his election in 2011, Mr. President kept his
promise. He has continued to renew his commitment to the industry.
The Nigerian Creative and Entertainment Industry Stimulation Loan
Scheme (NCEILS) was launched with the funds pledged by Mr. President.
Having facilitated the drafting of the operational guidelines for
operating the Fund, and as the trade policy bank of the Federal
Government, the Nigerian Export-Import Bank has managed it. NEXIM Bank
flagged-off funding support for the Nigerian movie industry with its
first film financing facility for the production of “Dr. Bello” Movie on
Saturday, April 21, 2012 at the Radisson Blu Hotel in Lagos. The bank
has since been providing funding support for the improvement of
distribution infrastructure/platforms and establishment of new digital
production studios.
