As an entrepreneur, 32-year-old chemistry
graduate Jason Njoku achieved success in a most unlikely way: he is Africa’s
largest distributor of Nigerian movies, and has raked in over $8 million since
2010, when he founded the company Iroko Partners. In December 2012 he
captivated an audience at a conference in Texas, United States, as he narrated
the story of his success after failures in some other business ventures. Mr.
Njoku currently has 71 employees in Lagos, London and New York, and often
boasts that “these people are working for us in a country with 50%
unemployment.” He was recently listed by Forbes, an American business
magazine, as one of the top 10 young African millionaires to watch.
The Nigerian film industry is undoubtedly
helping create jobs in a country with an economy that relies mainly on oil and
agriculture. Over a million people are currently employed in the industry,
making it the country’s largest employer after agriculture. Although Nigeria’s
economy will grow by 7% this year, according to the African Development Bank,
insufficient jobs for a growing youth population continue to be a huge concern.
One million new jobs
The Nigerian film industry, also known as
Nollywood, produces about 50 movies per week, second only to India’s Bollywood—more
than Hollywood in the United States. Although its revenues are not on par with
Bollywood’s and Hollywood’s, Nollywood still generates an impressive $590
million annually. Believing that if the industry is properly managed, a million
more jobs could be created in the sector, the World Bank is currently assisting
the Nigerian government to create a Growth and Employment in States project to
support the entertainment industry, along with other industries.
Chioma Nwagboso, a World Bank finance and
private sector specialist, says that the Bank understands the job creation
potential of the Nigerian film industry and the need for a “fruitful export for
the country.” Without initial support from the government, Nollywood propelled
itself to the position it occupies today, and a little lift could take the
industry to even greater heights, she adds.
Low production costs
Koïchiro Matsuura, former director-general of
the United Nations Educational Scientific and Cultural Organization (UNESCO),
says that “film and video production are shining examples of how cultural
industries, as vehicles of identity, values and meanings, can open the door to
dialogue and understanding between peoples, but also to economic growth and
development.” The African film industry is not only an entertainment industry;
it is also a moneymaker. Film industry analysts believe that the Nigerian
cinema is the most popular on the continent.
Nollywood films have a large following in
Africa and among Africans around the world. They gained popularity during the
digital revolution of the early 1990s when camcorders replaced 35-millimeter
film cameras, and digital systems replaced celluloid as recording devices. At
the time, while some parts of the world adapted to the new digital technology,
Nigeria continued to use inexpensive VHS tapes and players that were easily
accessible and affordable to consumers. Eventually film technology evolved as
movies made on DVDs started to generate huge demand.
On average, producing a movie in Nigeria costs
between $25,000 and $70,000, says the British Broadcasting Corporation. The
films are produced within a month and are profitable within two to three weeks
of release. Most DVD movies easily sell more than 20,000 units, while the most
successful ones sell over 200,000. But despite the success of the movies,
Nollywood actors’ incomes are low. Even the most popular get paid between
$1,000 and $3,000 per film. Only a few can claim higher earnings. Actress
Omotola Jalade Ekeinde, one of Nollywood’s highest-paid performers, recently
topped the charts at 5 million naira ($32,000) per film.
Tackling Piracy
Author Patrick Ebewo attributes the popularity
of Nigerian movies not only to their low unit costs, but also to their “indigenous
content of issues relevant to a mass audience.” Through a combination of
African storylines and Western technology, “these films document and recreate
socio-political and cultural events,” states Mr. Ebewo.
But Nollywood’s popularity also means serious
piracy problems. The World Bank estimates that for every legitimate copy sold,
nine others are pirated. “In terms of exports, these movies are purchased and
watched across the world — in other African countries, Europe, USA and the
Caribbean, and almost all the exports are pirated copies,” remarks Ms.
Nwagboso. She adds that because there are currently few legal channels for
exporting movies, few or no returns go to the filmmakers and practically no
revenue goes to the government. The current collaboration between the World
Bank and the Nigerian Export Promotion Council, the Nigerian Copyright
Commission and the National Film and Video Censors Board is therefore necessary
and urgent, many analysts believe.
Legitimate distributors also want an end to
piracy. “We’re the first guys to actually legally reach out in Lagos to the
production houses, the owners of the movies, and negotiate and sign deals with
these guys so they can finally get remunerated for their hard efforts,” claims
Mr. Njoku.
Shining light
The Nigerian government and other industry players,
assisted by the World Bank, hope to fund anti-piracy measures such as the
source identification code, which will create “a digital distribution platform
for Nigerian films.” The code will connect video clubs and retail outlets and
ensure that only digitally secured content can be rented.
Euromonitor International and Reed Exhibitions,
organizers of the World Travel Market, a global event for the travel industry,
predicted in their November 2012 report that Africa’s projected 5.2% GDP growth
rate in 2013 would be due in part to the popularity of the Nigerian film
industry, which it said would also attract domestic and regional tourism. While
Nigeria was hosting the industry’s top brass in March, President Goodluck
Jonathan referred to Nollywood as “our shining light,” adding that “whenever I
travel abroad, many of my colleagues ask me about Nollywood.” The challenge is
to ensure this light shines even brighter in the future.
Source: UN African Renewal
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