Billion-Naira movies, Dollarized music: The unequal rise of Nigeria’s entertainment industry

In 2025, Nigeria’s entertainment industry recorded strong growth, driven largely by Nollywood’s box office expansion and Afrobeats’ continued global rise. The sector edged closer to major valuation milestones, with cinema revenues reaching ₦15.6 billion, representing a 34.72 percent increase from 2024.

This performance highlighted a gradual shift toward more sustainable business models, where creativity increasingly aligns with commercial viability.

Despite economic headwinds such as naira depreciation and inflationary pressures, industry stakeholders adapted through digital distribution, strategic marketing, and international partnerships. These adjustments reinforced entertainment’s position as a core pillar of Nigeria’s creative economy.

Structural Shifts in Film and Music

Two developments stood out in 2025 and appear likely to endure. First, Nollywood surpassed Hollywood in West African market share, accounting for 49.4 percent of total gross, compared to Hollywood’s 48.8 percent. This milestone reflected improved production quality, stronger audience preference for local narratives, and growing investor confidence driving job creation across film production, distribution, and ancillary services.

Second, Afrobeats diversified further, branching into subgenres such as Afro-fusion and Afro-rave. This evolution broadened global appeal and unlocked new revenue streams. Nigerian artists earned over ₦58 billion from streaming platforms in 2024, a figure that accelerated in 2025 through cross-border collaborations and wider international licensing.

Actors as Producers: Opportunity and Growing Pains

After years of mainstream visibility, several Nollywood actors particularly from the English and Yoruba-language sectors transitioned into executive producer roles in search of greater creative and financial control. However, some struggled emotionally when revenues failed to meet expectations, a contrast to their veteran status.

Given their experiences with past exploitative systems, such as the Alaba distribution era, these actors are well positioned to adapt yet doing so requires embracing data-driven strategies and algorithmic optimization on streaming platforms.

Three cases illustrate this tension. Toyin Abraham, producer of hits such as Malaika, publicly expressed frustration over piracy’s impact on box office returns, highlighting the emotional toll of revenue leakages despite commercial success. Mercy Johnson, through her production ventures, voiced similar concerns in 2025 after disappointing returns linked to distribution inefficiencies. Ibrahim Yekini (Itele), known for Koleoso, faced algorithmic visibility challenges on digital platforms, prompting emotional appeals to fans following underwhelming streaming performance. Collectively, these examples underscore the need for analytics-driven distribution and audience engagement strategies.

Funke Akindele and the Billion-Naira Benchmark

Funke Akindele further cemented her status as arguably Nollywood’s wealthiest figure in 2025. Her release, Behind the Scenes, grossed over ₦1.77 billion at the box office, building on the momentum of her 2024 film, Everybody Loves Jenifa, which—despite mixed critical reception—neared the ₦1 billion mark.

These figures signal Nollywood’s maturation into a market where high-budget films can reliably cross the billion-naira threshold, supported by strategic marketing, diaspora audiences, and premium positioning. At the same time, challenges persist: piracy continues to erode up to 30 percent of potential revenues, competition from global streaming platforms demands algorithmic efficiency, and inflation increases production costs by 15–20 percent annually.

Looking ahead, the industry is likely to adopt more hybrid release models, balancing cinema exclusivity with on-demand access to stabilize growth. With stronger co-productions and international financing, the market could expand toward ₦20 billion by 2027.

Seasonality and the Cinema Advantage

December has effectively become synonymous with Funke Akindele and Toyin Abraham, whose festive releases consistently dominate holiday box offices and account for over 40 percent of annual cinema earnings during that period. Meanwhile, the early ember months favor Kunle Afolayan’s culturally rich and historical projects, which attract premium audiences and reinforce brand prestige.

In 2025, cinemas reasserted themselves as the preferred channel for high-quality Nollywood releases. A total of 81 films premiered in theaters, with 14 titles surpassing ₦100 million in earnings. This trend reinforces cinema’s role not only in revenue generation but also in building long-term brand equity and ancillary income streams.

Music, Virality, and Global Tension

Music distribution in 2025 was heavily shaped by social media virality, with TikTok emerging as the primary discovery engine. Songs increasingly went viral on the platform before gaining mainstream radio play, lowering entry barriers for emerging artists and reducing reliance on traditional label promotion.

This shift empowered artists to generate trends first and secure funding later. Empire Distribution exemplified this model through partnerships with Nigerian acts such as Olamide, Fireboy DML, Asake, BNXN, and Kizz Daniel, leveraging digital traction into global distribution deals.

Valued at ₦901 billion in 2024, Nigeria’s music industry is projected to reach ₦1.5 trillion by 2033, driven by Afrobeats’ global integration. However, this international focus has strained local accessibility. Dollar-denominated royalties benefit global stakeholders, while premium concert pricing increasingly excludes domestic fans.

For instance, Asake’s Lagos concert featured ticket prices of ₦300,000 (regular), ₦500,000 (VIP), and up to ₦1 million (VVIP). While such pricing delivers strong returns amid naira depreciation, it risks alienating local audiences. Without tiered pricing models or strategic subsidies, domestic growth could plateau at 5–7 percent annually.

Overall, 2025 was a defining year for Nigeria’s entertainment industry marked by record-breaking successes, expanding global influence, and deepening structural challenges. The sector’s future growth will depend on balancing international ambition with local inclusion, strengthening data-driven decision-making, and implementing reforms that ensure more equitable and sustainable value creation across film and music.