Temitayo Olumofe
Nigerian Film Industry, also known as Nollywood is one of the largest film industries in the world, producing over 2,500 films annually. Its popularity extends beyond Nigeria, with a significant following in Africa, the Caribbean, and other parts of the world. Nollywood films often explore themes that resonate with African audiences, such as family, love, tradition, and social issues like corruption and inequality. The industry’s storytelling style is known for its unique blend of drama, music, and humor.
Nollywood has gained international recognition, with several films showcased at prestigious film festivals like Cannes, Toronto, and Sundance. The industry’s global appeal has also led to collaborations with international filmmakers and streaming platforms like Netflix. Nollywood contributes significantly to Nigeria’s economy, generating billions of naira in revenue annually. The industry also provides employment opportunities for thousands of people, both directly and indirectly.
Its remarkable growth and global recognition are a testament to the industry’s resilience and creativity. In addition, Nollywood’s collaboration with streaming platforms such as Netflix has enabled it to reach a wider global audience.
The Controversy
The recent controversy surrounding Netflix and the Nigerian film industry, also known as Nollywood, has ignited discussions about mismanagement and the future of filmmaking in Nigeria.
On December 4, 2024, Victor Okhai, President of the Directors Guild of Nigeria, announced at the Zuma Film Festival that Netflix would halt funding and acquiring new films in Nigeria.
This decision sent shockwaves through the industry, raising questions about accountability, financial management, and the future of storytelling in a country known for its vibrant film culture.
Allegations of financial mismanagement
When Nigerian comedian and filmmaker Bright Okpocha, better known by his stage name Basketmouth, made allegations that numerous Nollywood filmmakers mishandled cash granted by Netflix, the dispute became even more intense.
During an interview on Arise TV, he claimed that producers often diverted substantial portions of their budgets for personal luxuries instead of investing in their films.
“When the streaming platforms came in, they provided significant funding to producers. But these producers would take the $1.5 million or whatever they’re given and use about 10 percent to make the movie. The rest? Houses, cars, and personal expenses,” Basketmouth stated.
This allegation highlights a troubling trend within Nollywood: a lack of transparency and accountability in financial dealings. Even when Netflix attempted to ensure direct payments to actors and crew members, some producers reportedly coerced them into returning part of their salaries.
“When you do that and expect your movie to be 100 percent, it can’t,” Basketmouth lamented, emphasising how these practices have led to subpar productions that fail to meet international standards.
Despite these allegations, Netflix has maintained that it remains committed to Nigerian storytelling. Following Okhai’s announcement, a Netflix spokesperson reiterated their dedication to supporting local talent and producing authentic Nigerian content.
However, their decision to reduce funding reflects a broader concern regarding accountability among filmmakers in Nigeria. This situation mirrors Amazon Prime Video’s withdrawal from Nigeria earlier in 2024 due to similar challenges regarding financial management.
The Consequences for Nollywood
The implications of Netflix’s funding cut are profound for Nollywood. The streaming platform has invested over $23 million since entering Nigeria in 2020, funding over 250 titles and creating numerous jobs. This investment was significant for an industry historically struggling with financing and distribution challenges.
But this amount was much less than the $125 million it promised to South Africa. This difference can be explained by the fact that South Africa has better facilities and returns.
Filmmakers now face the daunting challenge of independently financing their projects without the upfront investments that previously supported high-budget productions.
Kunle Afolayan, a prominent Nollywood filmmaker known for his critically acclaimed works like “The Figurine” and “October 1,” expressed concern about the impact on the industry: “This is a big blow… it’s a wake-up call for filmmakers.
”Afolayan emphasised that filmmakers must prioritise quality storytelling and production values to attract future investments.Industry experts warn that this shift could lead to fewer opportunities for actors and crew members as projects become more challenging to fund. The quality of Nigerian films may also decline if producers cannot secure adequate financing for their projects.
As Daddy Dabz, an industry commentator, noted, “This strategy ensures accountability and raises the bar for quality in the Nigerian film industry.” However, this raises concerns about how many talented individuals may be left behind as funding becomes scarce.
Mixed reactions from industry stakeholders
Reactions within Nollywood regarding Netflix’s decision have been mixed. While some industry players view it as a necessary step towards improving accountability and quality standards, others see it as a setback for Nollywood’s aspirations for global recognition.
Murtala Muhammed Balogun remarked that Netflix’s change in approach requires filmmakers to produce quality content before receiving investment.
On the other hand, Ndubueze Odum voiced his concern that less investment will impede the growth possibilities of Nollywood: “It means fewer big projects and fewer opportunities for the industry to thrive.
”The incident has also generated conversations within the Nollywood industry on the necessity of reforming the industry internally. In the realm of financial transactions, numerous stakeholders are advocating for increased openness, as well as for producers to engage in more ethical behaviours.
Filmmakers like Afolayan have urged local distribution platforms to lessen dependency on foreign entities like Netflix. “We need to build our platforms,” he stated during a panel discussion at the Zuma Film Festival.
Additionally, there are increasing calls for filmmakers to collaborate and share tools and information about the best ways to run a production. This collaboration could help build a more stable environment where filmmakers can succeed without relying on foreign capital alone.
The role of local content creators
The impact of Netflix’s decision extends beyond just financial implications; it also raises questions about the narratives being told within Nollywood.
With reduced funding from international platforms, local content creators have an opportunity to step up and fill the void left by foreign investments. This could lead to a renaissance of storytelling that reflects authentic Nigerian experiences without external influence.
Instead of relying on traditional ways to raise money, like crowdfunding or forming partnerships with local businesses, filmmakers are exploring new ways to tell stories that connect with Nigerian viewers.
Filmmaker Genevieve Nnaji emphasised this point during her keynote address at the festival: “We have stories that are uniquely ours; we just need to find ways to tell them without foreign funds.”
New technologies, like mobile filmmaking and digital distribution platforms, also give filmmakers new ways to reach viewers directly without going through traditional intermediaries like streaming services or big studios.
As more Nigerians access smartphones and internet connectivity, independent filmmakers can leverage these tools to create compelling content that speaks directly to their communities.
As Nollywood navigates this challenging landscape, there is an urgent need for reform within the industry. Filmmakers must prioritise ethical standards and transparency in their dealings with investors while fostering peer collaboration. The emphasis on quality over quantity may benefit Nollywood by encouraging more compelling narratives and better production values.
In addition to internal reforms, stakeholders must advocate for supportive policies from the Nigerian government to bolster the film industry. This includes tax incentives for local productions, grants for emerging filmmakers, and improved film production and distribution infrastructure.
As a wake-up call, Nollywood stakeholders—producers, actors, writers, and directors—should work together to develop a viable film industry that can grow without foreign funding.
A New Era for Nollywood
Although Netflix has not left Nigeria, the news that it has tweaked its funding strategy indicates that Nollywood is at a crucial crossroads. The industry must rise to the occasion and strive for excellence to keep its position in the international arena.
As Basketmouth aptly put it regarding those responsible for mismanaging funds: “They know themselves.” Now is the time for all stakeholders in Nollywood to take responsibility and work towards a brighter future while ensuring that Nigerian stories continue to resonate globally.
While challenges abound following Netflix’s funding cuts, Nollywood has immense potential for growth if its stakeholders embrace change with integrity and creativity. By focusing on great storytelling, ethics, and local talent and resources, Nollywood may become a global light of African cinema.
