Communiqué 69: The playbook behind MBO Capital’s bet on Nollywood’s global future

A behind-the-scenes look at how private equity firms like MBO Capital are taking Nigeria’s film industry seriously.

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1. Nollywood meets finance

In early April, a curious mix of Nigerian film industry stars and investment professionals gathered in a financial services firm's offices in Lagos for an important conversation: how to make films that make money. Hosted by MBO Capital, a Lagos-based private equity firm, the one-day conference brought together creatives and financiers to unpack the film business in Nigeria.

Unlike the typical glamour-heavy gatherings of Nigeria’s film elite, this event was equal parts business school and industry therapy session. Two standout panels set the tone for the rest of the conference. One, titled "Positioning Nollywood for Profit," brought together voices like BB Sasore of Nemsia Films, Enyi Omeruah of EK 782 Films, and Wangi Mba-Uzoukwu, former Head of African Originals at Amazon Prime, to dissect how to tell commercially viable stories. The second panel, "Looking Behind the Scenes: The Art of Telling the Best Stories," explored the creative process of filmmaking, with contributors like Arie Esiri (Eyimofe), Seyi Siwoku, cinematographer Ola Cardoso (Breath of Life, The Journey of an African Colony), and screenwriter Nicole Asinugo (Living in Bondage 2).

Over the last three years, MBO Capital has quietly built a track record as one of the most active financiers in Nigeria’s film industry. But this event wasn’t about showboating. Instead, it was about knowledge sharing. After several years of investing in Nollywood, the firm has learned what it takes to back a successful production and what red flags to watch out for. Now, it was ready to share these lessons publicly for the first time.

2. A serendipitous start

MBO Capital’s foray into film financing began in 2017, almost by accident. At the time, the firm’s investments focused primarily on sectors like real estate and manufacturing, industries with clear fundamentals and well-understood business models. But then an opportunity arose to invest in a slate of films by Inkblot Productions, a fast-rising film studio out of Lagos. Fresh off the success of The Wedding Party, then Nigeria's highest-grossing movie, the company was looking for working capital to fund its growing slate of productions. For MBO, this was a chance to test the waters.

So, it structured a deal with a revenue-participation agreement, and while the firm declines to share exact returns, it claims it was a financially rewarding partnership. The three films it funded—The Wedding Party 2, Moms at War, and New Money—are on the list of Nigeria's highest-grossing films. But the firm did not invest in more titles until the streaming boom of the early 2020s.