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Exploring Nigeria’s Thriving Creative Industry: An Overview

Exploring Nigeria’s Thriving Creative Industry: An Overview

Nigeria’s creative industry: ICIR

Author: Lateef Modati | madotiayomi@gmail.com

1.0 Introduction 

Creative business has become a dynamic, robust and undeniable force in today’s fast-paced and global village. Creative industries comprise a broad spectrum of economic pursuits that rely heavily on creativity. The digital era has brought a significant development to creativity through the internet and new technologies, and these has resulted to new potential for creative enterprises to reach new and large audiences and produce new revenue streams.  The Nigerian creative industry has experienced massive growth over the last decade. According to the International Monetary Fund (IMF), the entertainment industry now accounts for 1.45% of Nigeria’s GDP. In 2016, the Arts, Entertainment and Recreation Sector generated N239billion in revenue, culminating in about 2.3% of Nigeria’s GDP for that year. Nollywood, which is the movie production subsector of the entertainment and creative industry, is globally recognized as the second largest film producer in the world, coming behind America’s Hollywood and ahead of India’s Bollywood. The number of film production annually, stands at around 2500 with a projection of US$22million by 2021 for total cinema revenue alone, while the total music revenue in Nigeria was estimated to rise to US$73million by 2021 (with a compound annual growth rate of 13.4%). The entire industry currently employs about a million people. Furthermore, it is also expected to generate about $7 Billion for the national economy. It is therefore important to examine what is actually going on in this thriving industry by identifying its massive growth and immense contribution to the Nigerian economy, its challenges and how they can be solved. 

2.0 Definition and Scope of the Creative Industry

The Cambridge Dictionary defines creative industry as an industry that is based on work in which original ideas are important, such as work in the arts or the media, in designing computer software, etc. It has also been defined as businesses with creativity at their heart – for example music design, film and video, architecture, publishing, crafts, visual arts, fashion, advertising, computer games, literature and the performing arts.  WIPO Copyright Model defines creative industries as “All industries involved in the creation, manufacture, production, broadcast and distribution and consumption of copyrighted works”. This is a more expansive definition. It encompasses the producers of the intellectual property, thus the embodiment of the creativity that is needed to produce the goods and services. It encompasses the mechanism of distribution and marketing and finally the consumers. They are all parts of the chain of the creative industry. 

3.0 A Review of Activities of Some Components of Nigerian Creative Industry and Their Contributions to Economic Development in Nigeria

The Nigerian creative industry has several components such as the music industry, fashion industry, film industry, architecture, arts and crafts, etc. The activities of some of these components are examined briefly.

3.1 The Film Industry 

The Nigeria movie industry did not start with Nollywood but has evolved over the years to become  popularly known Nollywood. The history of the Nigerian movie industry dated to the 19th century. It can be divided into four eras; the colonial period, Independence period, Indigenization Decree period, and Nollywood period. The substitution of peephole viewing of motion picture devices by improved motion picture devices, facilitated the screening of the first set of films at the Glover Memorial Hall in Lagos Nigeria. During this period, the film production, exhibition and distribution were controlled by the British colonial government. Around 1920s, film makers began to produce films for local audiences within Nigeria, employing the use of mobile cinema as a means of exhibition. In 1926, the film “Palaver” was produced by Geoffrey an English producer which first feature Nigerian actors in a speaking role.

After Nigeria’s Independence in 1960, the colonial film Unit was replaced with the federal and state unit. This led to the increase in Nigeria theatres’ content in the late 1960s into the 1970s, especially productions from the theatre practitioners like Hebert Ogunde, Ishola Ogunsola, Jab Adu, Ladi Ladebo, Moses Olaiya and others who were from the western Nigeria. 

Nollywood have large followership throughout Africa and among the Africans in diaspora. According to Msugh-ter Teddy and Hanmakyugh, the industry produces more than 2,500 movies per year, and it is the second largest in the world coming behind America’s Hollywood. The Nollywood industry has highly unique content that is generated in a variety of languages to reflect various cultural projections. Among the languages used are English, Hausa, Ibibio, Igbo, Yoruba and so on. Early Nollywood films portray the lively culture, architecture, and, in many cases, relative wealth in current Nigerian society. They nonetheless uphold the integrity of an original and convincing narrative.  Themes of deception, conflict, love, betrayal and triumph are common to most of their storylines. Its contribution to the Nigerian economy has greatly appreciated generating $600 million per year and creating thousands of jobs. The revenue generated from cinema is estimated to be around $22 million. Even though Nollywood does not have the same annual revenue as Hollywood or Bollywood, it is recognized for producing a prodigious amount of work in less favorable circumstances. 

As a result of its successes in the local and international markets, in 2018, global streaming giant, Netflix acquired worldwide rights to Lion Heart, a Nigerian movie directed by Genevieve Nnaji. In that same year, Netflix announced that it will be putting out $8 Billion original budget to work in Nigeria’s movie industry. In furtherance of this, in February 2020, Netflix made its official debut in Nigeria, acquiring and distributing Nigerian filmed content. Since then, it has gone ahead to acquire several Nigerian movies, including the Wedding Party, King of Boys, Elevator Baby, Oloture,  It’s her day and a host of others. Currently, Nigerian movie producers are able to enter into publishing and streaming deals with Netflix for their local content. Local movie streaming platforms have also emerged, with Iroko TV being a vibrant player in this regard.

The Nigerian film industry has become a global force with a sizable follower in Africa and among the African diasporas. PwC disclosed that the sector is an important part of the arts, entertainment and recreation sector that have contributed 2.3% to Nigeria’s GDP in 2016. It was also reported that the industry accounted for $7.2 billion which is 1.42% of Nigeria’s GDP.  The report published in December 2021 by statista.com also showed motion picture and music recording accounted for about $53.5 billion of Nigeria’s GDP in 2021. PwC Global Entertainment and Media Outlook 2022–2026 wrote that Nigeria’s media and entertainment sector is one of the world’s fastest-growing creative industry. With a projected annual consumer growth rate of 8.8% (CAGR), it has the potential to become one of the nation’s exports. PwC added that, Nigeria’s film industry contributed $239 billion (2.3%) of the country’s GDP in 2021. They projected that the sector’s export revenue will rise to more than $1 billion. The GDP of the nation was boosted by the film and music industries in 2020 by around $1.8 billion. The industry is sometimes also referred to as the country’s second-major source of jobs aside from agriculture as it records more than a million employees.

3.2 The Fashion Industry 

Famous trend in clothing, personal grooming and accessories is Fashion. It stands for the styles, or designs that are embraced and accepted by a group of people or culture.  The concept of fashion does not consist of dresses alone as many usually believe but it also includes other forms of clothing and apparel like shoes, accessories (head wears, jewelries, wristwatches, ties etc.), make up, skin care and other things that adorns the human body. Also, fashion can be seen in furniture, art, cars, food, jewelries, hairstyles, cosmetics etc.  In essence, the fashion industry has been defined as a business that involves the design, production, marketing, and selling of clothing, footwear, accessories, and other lifestyle products. It includes numerous subsectors like haute couture, ready-to-wear, streetwear, and luxury goods. Nigeria comprises of 250 ethnic group, so its fashion is born out of rich, unique and attractive multi-ethnic culture. The people’s culture is greatly affected as a result of the three main environmental regions – the savanna, tropical forests, and coastal wetland. Nigerian apparels or dresses genuinely mirrors the diversity of her culture. 

Both male and female have their unique and attractive fashion. The clothes include different colors, textures, and decorations. Among the materials used to prepare dresses in Nigeria are the African fabrics; adire, (tie dye) aso-oke, ankara, and java, silk, Lace Dry lace, George, guinea french lace, Jacquard, and many more. Over the years in Nigeria, just like other countries, fashion is constantly moving, changing and being reinvented and reinterpreted all over the world, leading to demand increase and quest for the newest style and fashion trends. Example of this can be seen in the 2023 Africa Magic Viewers’ Choice Awards (AMVCA). The fashion shows at the AMVCA showcased the talent and creativity of the Nigerian fashion industry. The exhibitions also showcased the works of some of Nigeria’s best designers like Tolu Bally, Lanre Da silva Ajayi and others who gave the public an idea of the latest African fashion trends. These served as a reminder that African fashion is on the rise and something to celebrate. 

Nigerian fashion is being positioned as a key driver for the Nigerian economy In Africa, fashion and textile industry is the second largest industry, with a worth of $31 billion, and Nigeria accounts for around 15 % of this.  The Nigerian fashion industry is one of the largest and fastest growing in Africa. It plays an important cultural role in Nigeria and contributes significantly to the country’s economy. The fashion industry in Nigeria is a major employer of labour, providing jobs for a large number of people, especially, women and youth, both in the rural and urban area thereby reducing unemployment rates. Creating revenue from taxes, exports, and various economic activities, the fashion industry is a substantial contributor to Nigeria’s GDP. The value of fashion industry in Nigeria is over ten billion dollars and it accounted for 0.47% of Nigeria’s Gross Domestic Product (GDP). Concerning economic diversification, fashion is a non-oil subdivision and offers a pathway for the diversification and reducing the over-dependence on the oil sector. It has generated lots of entrepreneurs, granting people the opportunity to start small and grow large. In Nigeria, the fashion industry has recently developed more presence, participants, structure, influence, income and education. Today, many Nigerians work in the industry as fashion stylists, fashion designers, fashion artists, models, fashion photographers, makeup artists, etc. 

3.3 The Music Industry

A writer called “servant” once said: If there is one African nation where the highs and lows of its music reflect its destiny, it is unquestionably the Federal Republic of Nigeria. It is a gigantic reservoir of mixed rhythms, reflecting the internal migrations of its countless ethno-linguistic groups.

The Nigeria’s music industry has undergone various transformations over the years, it is highly dynamic, stimulating, and is rapidly expanding. Coupled with its rich cultural heritage, it is one of the most thriving music industries in the world. This industry over the years has grown to a sizable level, and its vibrant popular music culture has gained attention on a global scale as a reflection of the country’s cultural diversity. The Nigeria music is broad, it includes both folks and contemporary categories. This is accredited to the country’s diverse ethnicities, and each possesses their own unique musical genres, instrumentation, and compositions.  In earlier times, Nigerian music had a utilitarian origin and was often utilized to commemorate events such as weddings or funerals. Traditional music in Nigeria is strongly associated with oral history and subsistence agriculture, a type typical in village communities. Among the prominent Nigeria music styles today are Afrobeat, Ogene, Afro-juju, Waka, Fuji, highlife, Juju, Apala, Igbo rap, etc. 

International award platforms are beginning to recognize Nigerian acts, with the latest and most prolific being Burna Boy’s consecutive Grammy nominations in 2019 and 2020 for his albums African Giant and Twice As Tall, and a subsequent win in 2021, for the later album (Twice As Tall). In recent times, more of the award categories and nominations allotted to African music at the Music Television (MTV) Awards, the Black Entertainment Television (BET) Awards, the Grammy Awards and even the Netherlands’ Eddison Awards, have been clinched by Nigerian artistes. Furthermore, Nigerian artistes are beginning to garner massive streaming numbers on various international music streaming platforms like Audiomack Spotify, Apple Music, Youtube and Boomplay. Local music streaming platforms like UduX and Gbedu have also emerged. These developments emphasize that Nigerian artistes and their songs are beginning to have a considerable space in the world music scene.

Furthermore, the impact of the Nigerian music industry cannot be over emphasized both economically and otherwise. Premium times, a Nigeria newspaper reported that in 2021, the industry has over 500 music producers, 1000 record label, over 30 million monthly listeners and generates over $2 billion in revenue per year.  Pwc also reported that the music industry recorded meaningful growth over the years, Total music revenue rose 9.0% in 2016 to $39 million, and was projected to rise at a 13.4% CAGR to $73 million in 2021. Statista also reported that Nigeria’s music revenue grew from $26 million in 2014 to $34 million in 2018 and projected that by 2023, the revenue was expected to amount to $44 million. Following these reports projections, International Trade Administration media and entertainment 2023 reported that the industry generated over $8 billion for the economy and created job for about a million people. This revealed that the reality is far beyond what was projected.

4.0 Challenges Facing the Nigerian Creative Industry

The Nigerian creative industry has proven its ability to get recognition internationally and create partnerships with foreign businesses. The industry has been in the limelight which has helped to show the country on the world map in very positive ways. However, several challenges  are causing setback for the Nigerian creative industry. Some of the challenges include: piracy, inadequate access to credit facilities, unreliable power supply, etc.

4.1 Inadequate Access to Credit Facilities: Although the Nigerian creative industry has made a significant contribution to the Nigerian economy, yet, sourcing for finance has always been a big obstacle for the industry. The actors in the industry usually have low budget for production which allows stories/production quality to be diminished and sometimes even destroy the story. Inadequate access to credit facilities has led many industry players to engage in self-funding which cannot help the industries in Nigeria optimize their potentials. In the United Kingdom and Australia, governments are committed through many forms to funding their creative sectors like partnership, with private sector, direct investments, grants and sponsored programs. Investors themselves require adequate education on the creative industry, Investors like venture capitalists and debt financiers like banks, are familiar with how to finance oil and gas deals because they have been doing so for several years, but the question of how money is made in the creative industry is a relatively recent one and seems they are not ready to take the risk. Even when there is  willingness to invest, the mechanism is frequently ineffective. Thus, they require education on the resources available to participate in the creative economy. 

4.2 Privacy: Piracy is the “unauthorized use or reproduction of another’s work”. For example, when a fashion designer’s original design is partially or completely duplicated or distributed under the control of an unauthorized party, this is known as fashion design piracy. The Nigeria copyright commission (NCC) is the body charged with copyright issues. Copyright Act was enacted and has been amended over the years to curb piracy. Despite this, piracy has persisted. It is a major problem for the creative industries everywhere including Nigeria. It was remarked that Nigeria is one of the nations with the highest rates of piracy; it was 82% in 2007, 83% in 2008, 83% in 2009, 82% in 2011, and it was still 83% in 2012. The Copyright Society of Nigeria also showed that piracy havoc cost the industry 50% potential revenue annually in Nigeria music industry. The creative industry has been most affected by piracy, and these have cost the sector billions of Naira. The emergence of technology has empowered Pirates’ activities. 

4.3 Insufficient Infrastructure and technological know-How: These are other issues bothering the industry and productions demand heavy and high-end hardware. This still boils down to inadequate financial support. This is because the equipment needed cannot be afforded by young and upcoming enterprises. Entertainment industry cannot rely on creativity alone, the place of innovation and implementation of technology is necessary for effective production. 

4.4 Unreliable Power Supply: This also has negative impact on the creative industry. This is because once electricity is available, half of the problem is solved. The power sector is undoubtedly a medium for industrial development. These industries -fashion, movie and music in Nigeria create their own basic structure to remain relevant in business. Such a situation invariably limits the ease of doing business in the industry. The failure by the governments to provide basic infrastructure like power, accessible road, soundstage, postproduction facilities, equipment, rented house, concert venues, creative hubs, a recording studio, rehearsal space etc. increases the production cost and sometimes, collapses the business completely. Other limitations are the unsupportive act of the government, the economic situation of the nation, sometimes lack of adequate training for the creators, unfavorable environment for the potential skills amongst others. 

5.0 Conclusion and Recommendations

Creative industry in Nigeria has received limited attention over the years and has often been categorized along with other sectors. However, considering the music, film, and fashion industries, which are just a fraction of the creative industries in Nigeria, it is obvious that their impact is perceived and has demonstrated incredible growth and resilience. These industries have gained international recognition, attracted global audiences, and contributed to the nation’s cultural diplomacy. This success shows the immense potential of the creative industries to drive economic growth and create a positive image of Nigeria on the global stage. It thrives despite limited government support, piracy, lack of modern equipment and infrastructure, absence of training and retraining among others. It also has the potential to create a substantial number of jobs for the vast population and therefore contribute to the nation’s GDP. Yet, further support and attention from the government and private sectors are germane to unleash their full potential and establish it as the new oil industry of Nigeria. Supporting the creative industry is not only economically beneficial but also crucial for preserving and promoting Nigeria’s rich cultural heritage. By strategically promoting and supporting the creative industries, Nigeria can tap into new markets and diversify its export base.  Likewise, local and foreign investors should critically understudy the industry and invest massively in the thriving industry.

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