On August 25, 2023 Nollywood director Editi Effiòng announced the executive producers for his film The Black Book. The list included African startup founders and investors like Nadayer Enegesi (Eden Life), Olumide Soyombo (Voltron Capital), and Ezra Olubi (Paystack). This growing interest from tech players in the film industry highlights a new wave of investments in Nollywood projects.For years, inadequate funding has limited Nollywood’s growth, affecting film quality and profitability. Filmmaker Niyi Akinmolayan noted that Nigerian films often face pricing and rejection challenges when submitted to streaming platforms due to these constraints.Journalist and film writer Anita Eboigbe believes more financial investment in Nollywood could address these challenges. She emphasized that greater funding could disrupt monopolies and resolve negotiation issues with streaming platforms, enabling better processes and outcomes.
Investments from platforms like Netflix and Amazon Prime, coupled with partnerships with local studios, have already enhanced film quality. This has translated into impressive box office performances, with local productions like The Wedding Party and Omo Ghetto: The Saga each grossing $1.5 million. By 2023, Nollywood accounted for 42% of box office revenue in Nigeria, a remarkable shift from its early reliance on direct-to-video sales.
Tech Investors Are Building Appetite for Nollywood.
Subomi Plumptre, CEO of Volition Cap, has recognized the industry’s long-term potential and structured innovative investment models for film projects. Her firm created a cooperative-inspired structure for The Black Book, enabling both small-scale and institutional investors to participate. Returns were boosted by the film’s acquisition by Netflix.
Olumide Soyombo, founder of Voltron Capital, noted that collaborations between tech investors and filmmakers are reshaping the industry, balancing creativity with financial discipline.Despite this progress, challenges persist. Limited infrastructure and technical expertise hinder Nollywood’s ability to produce diverse, high-quality genres like action films, which could yield greater revenues. Patient capital investments in studio facilities and equipment could resolve these issues. Soyombo has already invested over £1 million in Rushing Tap Studio, providing filmmakers with essential resources.While some investors, like Plumptre, are considering further investments in physical infrastructure, others, such as Victoria Popoola of TalentX Africa, are focusing on improving distribution pipelines. TalentX has invested nearly $1 million in Nollywood movies, leveraging streaming platforms for revenue growth.
Nollywood Offers Attractive Returns.
Unlike the tech ecosystem, Nollywood lacks a structured funding pipeline, forcing filmmakers to rely on personal relationships. Eboigbe advocates for creating clear funding pathways to attract more investors.Plumptre’s firm is currently structuring a $20 million fund dedicated to supporting African creatives. Soyombo highlighted that Nollywood projects offer competitive returns, ranging from 50% to 3x, making it a compelling asset class for retail and institutional investors alike.
More Money, Fewer Problems
Eboigbe stressed that increased funding would empower filmmakers to pursue ambitious projects while also prioritizing profitability. This balance is crucial for sustaining investor confidence.
Nollywood’s global profile is growing, with films like Gangs of Lagos achieving international success on Prime Video. However, systemic issues, such as funding shortages and distribution barriers, must be addressed to ensure lasting impact and inclusivity for independent filmmakers.With sustained investments and strategic solutions, Nollywood is poised to solidify its place as a global cinematic powerhouse.
