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Nigeria's Economy

Nollywood

How Nigeria's film industry grew from low-budget home videos in the 1990s into one of the world's most prolific film industries, and its economic model.

Nollywood is Nigeria’s film industry.

Origins

  • The 1992 home video “Living in Bondage” is often cited as the start.
  • Films were shot quickly and cheaply on video and sold on VHS and DVD in markets.

Scale

Nollywood produces thousands of films a year, making it one of the world’s most prolific industries by volume.

Economic model

  • Low budgets: often tens of thousands of dollars.
  • Fast production: films made in weeks.
  • Informal distribution through markets like Idumota in Lagos.
  • Piracy was widespread.

Changes

  • Cinemas and higher-budget films grew in the 2010s.
  • Streaming: Netflix and Amazon commissioned Nigerian films and series.

Cultural export

Nollywood films are popular across Africa and the diaspora, spreading Nigerian culture and English and Pidgin language content.

Jobs

The industry employs many actors, crew and distributors.

Comparison with India

Like Indian cinema, Nollywood serves huge local audiences with distinctive stories.

The two-week film

A Lagos producer shoots a family drama in two weeks on a small budget, releases it online and earns back costs through a streaming deal.

Thinking film industries need big budgets

Nollywood grew on fast, low-budget production.

Key takeaways
  • Nollywood began with home videos in the early 1990s.
  • It produces thousands of films a year.
  • Low budgets and informal distribution defined its model.
  • Streaming and cinemas are raising budgets.
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