A recent report by PricewaterhouseCoopers (PwC) has projected that Nigeria’s entertainment and media sector will experience significant growth, expanding from $9 billion in 2023 to an impressive $13.6 billion by 2028. This growth is part of a broader trend across Africa, where the entertainment industry is thriving.

Key Takeaways

• Nigeria’s entertainment sector is projected to grow to $13.6 billion by 2028.
• The growth is driven by digital platforms, internet advertising, and mobile services.
• Emerging technologies like AI and 5G are expected to transform the industry.
• Challenges include infrastructure development and regulatory frameworks.

Growth Drivers in Nigeria’s Entertainment Sector

The PwC report highlights several key factors contributing to the anticipated growth in Nigeria’s entertainment sector:

1. Digital Expansion: The rapid growth of digital platforms and services is a primary driver. Sectors such as internet advertising, video games, esports, and over-the-top (OTT) streaming are seeing substantial increases in revenue.
2. Live Music Recovery: The live music sector has rebounded post-COVID, surpassing pre-pandemic revenue levels, indicating a strong demand for live entertainment.
3. Youth Demographics: Africa’s young population is increasingly favoring mobile-based services, which include mobile gaming and streaming, further propelling the industry forward.
4. Technological Advancements: The integration of emerging technologies, particularly artificial intelligence (AI) and 5G, is set to enhance content creation and delivery, creating new opportunities for growth.

Comparative Growth Across Africa

The report also compares Nigeria’s growth with other African nations:

• South Africa: Expected to grow from $16.1 billion to $19.8 billion.
• Kenya: Projected to increase from $3.8 billion to $4.8 billion.

This indicates that while Nigeria is on a robust growth trajectory, other African markets are also experiencing significant expansion in their entertainment sectors.

Challenges Ahead

Despite the optimistic outlook, the report identifies several challenges that could hinder growth:

• Infrastructure Development: Continued investment in infrastructure is necessary to support the growing demand for digital services.
• Regulatory Frameworks: There is a need for policies that foster digital growth and protect content creators.
• Business Model Innovation: Companies must adapt to rapid technological changes and evolving consumer preferences.

Conclusion

The PwC report paints a promising picture for Nigeria’s entertainment sector, highlighting its potential to become a major player in the global market. With the right investments and policies in place, Nigeria could solidify its position as a leader in the African entertainment landscape, driven by a youthful population and technological advancements. As the industry evolves, stakeholders must navigate the challenges to fully realize this potential.

Sources

• Nigeria’s entertainment sector to hit $13.6 billion by 2028 — PwC, Business News Nigeria.