Communiqué 54: Why Nigeria’s film industry has struggled to go global

Industry-wide changes from the late 1980s helped Nigeria’s film industry grow. But those same systems have limited its international reach. Times have changed, so what can Nollywood do differently?

1. A turning point

In 2024, Nigerian movies outsold Hollywood movies locally for the first time, reversing a longstanding trend. Until that year, filmgoers in the country had consistently chosen to watch foreign movies over local titles.

This trend reversal helped drive a record ₦11.5 billion in ticket sales, a 60% increase from the ₦7.2 billion made in 2023. A significant price hike in movie tickets drove the growth as the industry adjusted to an inflation rate of over 33%.

While the price hike took the films beyond the reach of many Nigerians, those who remained steadfast opted to watch more local films. This small victory for the industry raised an important question: If Nigerian films were finally gaining more traction than foreign films at the local box office, had the time come for them to crack the international market?

Nollywood, as Nigeria’s film industry is famously called, has been touted by many as a global giant. In 2009, UNESCO declared it the second-largest in the world, surpassing Hollywood and second only to Bollywood. But this characterization was based on quantity—the number of films produced within the industry during the year. While quantity is an important metric for success, there are more important indicators like quality and global commercial viability. In this area, Nigeria's film industry has performed poorly.

2. What does success look like?

For a country’s movie industry to achieve global success, it must be successful outside its home market. In the U.S., for instance, the 20 highest-grossing movies have accumulated $34.6 billion, of which $21.8 billion came from foreign markets. The success of India’s film industry, Bollywood, has also been largely based on the performance of its films in foreign markets. Its 10 highest-grossing movies have made $1.3 billion—$200 million locally and $1.1 billion internationally. South Korea has also executed a similar crossover with its film industry. Of the $1.29 billion its 10 highest-growing films have generated, 95% ($1.22 billion) has come from the international box office.