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There is a high potential for Nollywood exports since Africa entertainment market is
characterized by a high demand for cheap movies offering a strong expression of African
cultural identity.
Nigeria with more than 150 million citizens is the most populous
country in Africa and represents an important market for the entertainment industry.
Since, more than half of the population lives below the poverty line and cannot afford
watching foreign movies at the cinema (ticket are sold between US$ 7 and US$10), cheap
production with strong African cultural identity are highly demanded from a large
audience in Nigeria and from the African diasporas. In 2008, Nigeria GDP per capita
stands at US$ 1401. According to World Bank estimates, the average Nigerian household
dedicates 5 per cent of its revenue for recreational activities. Indeed most of the expenses
are related to food and beverage (38%), housing (18%) and transport and communication
(16%). Therefore, an average Nigerian family has an annual budget for recreational
activities amounting to US$ 70 and will spend about US$ 10 for movie spending.
Figure 13 : A typical consumer basket in a developing country.
The authorities and the entertainment industry shall engage in a dialogue to reform
Nollywood to unleash its real potential
. Indeed as long as the industry cannot capture a
greater proportion of the revenue stream it will be consigned to making low-budget, low-
quality productions and will not have the ability to scale-up its operations and provide a
larger number of well-paid jobs and have a chance to compete on the international
entertainment market.