NECLive forecasts substantial growth for Nigerian entertainment industry

This is revealed in a new NECLive report tracking the growth, trends and opportunities in the music, film, fashion and comedy landscapes. The report spotlights the diverse and culturally rich nature of Nigerian entertainment, which encompasses more than 250 dialects and ethnic groups, while highlighting the dynamic relationship between people and art in the country’s entertainment industry.

The growth, from $4bn in 2013, is attributed to factors including internet accessibility among mobile users, which is expected to increase from 54 million to 78 million subscribers, with individuals now consuming music content mainly through online streaming. The report also cites the growth of streaming platforms and the integration of innovative technology like generative AI, and credits Afrobeats artists like Burna Boy, Tems and Wizkid, who are all Grammy Award winners, for propelling the industry to global recognition.

In 2013, the local entertainment industry faced significant challenges, including talent development, a lack of distribution networks, copyright infringement, piracy and limited funding. Additionally, there was a lack of infrastructure and good technologies for quality content production. The document notes that the Nigerian music industry, currently valued at $44bn, has evolved significantly in the past 10 years, with 64.9% of entertainment stakeholders surveyed for the report saying that the main challenges affecting the industry a decade ago either no longer exist or have been substantially resolved.

“Today, the industry is experiencing a breathtaking surge in potential and growth, captivating the attention of renowned international brands, while attracting the interest of similar brands eager to tap into the market,” NECLive founder Adekunle Ayeni said. “Across various entertainment domains, including music, fashion, and more, Nigeria stands on the precipice of sprawling success, a feat unimaginable about a decade ago.”

The brainchild of ID Africa, NECLive, which has run for more than 10 years, features talks, performances and workshops. It is currently being presented by the Africa Creative Foundation. Between 2013 and 2022, NECLive invested more than ₦1.3bn ($1.6m) in conferences, workshops, advocacy, exhibitions, thought leadership, content, products, research, and more. NECLive says the investment has positively impacted the industry by fostering talent development, improving regulation, increasing international exposure, securing more funding, promoting digital streaming and distribution, and facilitating more international collaborations. The local industry currently sustains more than 2 million jobs and has generated over $7bn, including $22 million in cinema revenue.

Earlier this year, streaming giant Spotify revealed that revenues generated by Nigerian artists on its platform reached ₦11bn in 2022, with Rema as the country’s most exported artist. Spotify added that the development formed part of a larger trend, where Nigerian music industry revenues saw a 63% growth from 2021 to 2022, according to the International Federation of the Phonographic Industry. Revenues solely from Nigerian artists on Spotify experienced a 74% increase in the same period, while the number of Nigerian artists who earned more than ₦5m in royalties from Spotify rose by nearly 25%.