Prof Mike Ozekhome SAN

ABSTRACT

This article interrogates the intersection of Artificial Intelligence (AI), digital transformation and sovereignty in the African context, with particular focus on Nigeria. It critiques the growing dominance of foreign technologies in shaping the continent’s AI policies, innovation ecosystems and legal frameworks, often without commensurate local input or contextual grounding. The work warns that the unchecked proliferation of imported AI systems risks entrenching digital dependency, algorithmic inequality and policy misalignment with local constitutional values, especially the right to dignity, privacy and non-discrimination.

The author posits that Africa’s technological renaissance must not be outsourced to external actors whose platforms may embed biases, opaque logic and extractive data practices. He advocates for a homegrown model of AI governance rooted in the principle of “Ethics by Design”, one that reclaims human dignity and aligns technological progress with constitutional and cultural realities. The study highlights the Nigeria Data Protection Act 2023 as a positive, albeit preliminary, effort toward asserting regulatory control. However, it urges a more robust framework that includes mandatory data localization, algorithmic accountability and institutional capacity-building.

The paper further calls attention to the geopolitical dimensions of digital transformation, where Africa must negotiate its place not as a passive consumer but as an active co-creator of ethical, inclusive technologies. In conclusion, the author proposes a new social contract for the AI age, one that places human dignity, data sovereignty and indigenous innovation at the center of Africa’s digital future. Without this, foreign dominance in AI may reproduce colonial power asymmetries in digital form, undermining both democratic governance and developmental autonomy.

KEYWORDS: Artificial Intelligence and Digital Transformation, Regulatory Frameworks, Data Localization, Data Sovereignty, Algorithmic Accountability, Algorithmic Transparency, Ethics by Design, Foreign Tech Dominance, Digital Colonialism.

INTRODUCTION

In situating arguments advanced in this article, it is essential to clarify certain operative terms that recur throughout our discourse. Artificial Intelligence, digital transformation and related regulatory concepts are often deployed with varying meanings across technical, legal and policy discourses. Without clear definitional grounding, the analysis of foreign technology dominance in Africa’s innovation ecosystem risks being blurred by semantic ambiguity.

Accordingly, the following section sets out key terms as used in this study, providing not only conventional definitions but also the contextual nuances most relevant to Africa’s socio-legal environment. These definitions are drawn from authoritative international sources, comparative regulatory frameworks and scholarly discourses and they are tailored to the themes of sovereignty, accountability and digital justice that underpin the critique of “new digital colonialism.”

Artificial Intelligence (AI)

This term refers to the field of computer science and engineering devoted to building systems capable of performing tasks that ordinarily require human intelligence, such as reasoning, learning, perception, decision-making and natural language processing (Cole Stryker, Eda Kavlakoglu, ‘What is Artificial Intelligence? (IBM.com, 9th August, 2024) <www.ibm.com/think/topics/artificial-intelligence> accessed on 9th September, 2025). It encompasses a broad set of techniques, including machine learning, deep learning, expert systems, and natural language understanding, through which systems recognize patterns in data, build predictive models, and adapt through feedback (https://cloud.google.com/learn/what-is-artificial-intelligence> accessed on 9th September, 2025).

AI powers a wide range of applications: autonomous vehicles, healthcare diagnostics, financial risk analysis, e-commerce personalization and governance tools. Beyond its technical utility, AI also raises profound legal and policy questions about accountability, ethics, bias, privacy and sovereignty

Digital Transformation

Digital Transformation is the comprehensive integration of digital technologies, particularly artificial intelligence (AI), data analytics, cloud computing and automation, into every facet of economic, social and institutional life. It goes beyond mere digitization to fundamentally reshape how businesses, governments and societies operate, create value and deliver services.

In practice, digital transformation involves rethinking business models, optimizing operations and enhancing stakeholder experiences through data-driven decision-making. AI is its central driver: by automating routine processes, enabling predictive analysis, and personalizing interactions, AI not only improves efficiency but also generates entirely new modes of production, governance, and innovation.

At the societal level, digital transformation promises economic growth, financial inclusion and more adaptive public institutions. Yet it also introduces vulnerabilities such as cyber-security threats, dependency on foreign digital infrastructures and risks of algorithmic biases. In regions like Africa, where much of the enabling infrastructure is controlled by foreign technology providers, digital transformation intersects directly with questions of sovereignty, regulatory autonomy and the equitable distribution of technological benefits.

Regulatory Frameworks (for AI and Digital Technologies)

This concept refers to the system of laws, policies, institutions and enforcement mechanisms that govern the design, deployment, and use of emerging technologies. They establish permissible uses, set technical and ethical standards, protect fundamental rights (privacy, dignity, non-discrimination) and ensure accountability of both domestic and foreign actors operating within a jurisdiction.

In the context of AI, regulatory frameworks commonly rest on principles of algorithmic accountability, transparency, fairness, human oversight and data protection. They are meant to balance innovation with safeguards against harms such as bias, opacity, or exploitative data practices.

Comparatively, the EU’s proposed AI Act (< https://artificialintelligenceact.eu/ > (Artificialintelligenceact.eu) Accessed on 9th September, 2025.) exemplifies a risk-based approach, regulating AI systems according to their potential impact on rights and society. In Nigeria, emerging efforts such as the Data Protection Act (2023, < https://placng.org/i/wp-content/uploads/2023/06/Nigeria-Data-Protection-Act-2023.pdf > (Place.org) Accessed on 9th September, 2025.), the Startup Act, the Advertising Regulatory Council of Nigeria (ARCON) Act, and initiatives like the National Centre for Artificial Intelligence and Robotics (NCAIR) (< https://ncair.nitda.gov.ng/ > Accessed on 9th September, 2025.) under National Information Technology Development Agency (NITDA) (< https://nitda.gov.ng/ > Accessed on 9th September, 2025) signal movement toward structured oversight. Together, these instruments reflect attempts to localize data control, regulate AI-related services and guide innovation within Nigerian values and constitutional guarantees.

For Africa, the challenge is sharper: regulatory frameworks must also contend with foreign technology dominance, ensuring that imported AI systems and platforms are adapted to local contexts, protect sovereignty and advance developmental priorities rather than replicate external power asymmetries.

Algorithmic Transparency and Accountability

These are complementary principles designed to ensure that algorithmic systems operate in ways that are both understandable and responsible. Transparency requires that the processes, logic, data inputs and decision rules shaping algorithmic outcomes be visible and interpretable to users, regulators and other affected stakeholders (< https://en.wikipedia.org/wiki/Algorithmic_transparency > Accessed on 9th September, 2025). It is a precondition for effective oversight, enabling independent review, auditing and informed consent. While transparency alone does not guarantee fairness, it makes unfair or biased practices detectable and open to challenge. Its key components include explainability, documentation of data sources, model interpretability and disclosure of decision pathways, with global benchmarks such as the European Union’s “right to explanation” and the European Centre for Algorithmic Transparency (ECAT) illustrating its growing importance.

Accountability, on the other hand, extends beyond visibility to place direct responsibility on the organizations that design, deploy, or rely on algorithms for the outcomes they generate (< https://en.wikipedia.org/wiki/Algorithmic_accountability > (Wikipedia.org) Accessed on 9th September, 2025). It encompasses proactive measures such as algorithmic impact assessments, audits and bias testing, as well as reactive mechanisms including remedies for harm, liability before regulators or courts, and obligations to correct discriminatory or harmful results.

Taken together, transparency and accountability form the backbone of ethical AI governance. They ensure not only that algorithmic systems can be scrutinized, but also that those who use them remain answerable for their consequences, thereby aligning technological innovation with legal standards, human rights, and democratic values.

ETHICS BY DESIGN

This is a proactive philosophy and operational approach that integrates ethical principles such as fairness, privacy, human dignity, non-discrimination and accountability directly into the design and development of technological systems, especially AI (Philip Brey, Brandt Dainow, ‘Ethics by Design for Artificial Intelligence’ (Springer.com, 21st September, 2023) < https://link.springer.com/article/10.1007/s43681-023-00330-4 > Accessed on 9th September, 2025). Unlike “ethics as compliance,” which treats ethics as a regulatory checkbox, Ethics by Design embeds ethical impact assessments, stakeholder consultations, bias testing and data protection safeguards into the technical architecture and governance frameworks from the outset.

Its purpose is to ensure that technologies are not only efficient but also equitable and humane, preventing harms such as systemic bias, privacy violations, or opaque decision-making. Global concerns around algorithmic discrimination, data misuse, and failed digital rollouts underscore the risks of neglecting this approach. In contexts like Nigeria, Ethics by Design must go beyond code and courtrooms, extending to grassroots participation, inclusive innovation and civil society engagement to ensure that AI systems respect democratic values of dignity, autonomy and justice.

Foreign Tech Dominance

The situation in which a small number of large foreign technology firms hold disproportionate influence over infrastructure, platforms, data, algorithms, investment and policy in sectors like AI in Africa, often shaping agendas, norms and capacities, sometimes at the expense of local innovation, control, or sovereignty.

This dominance can manifest via cloud services, data storage and processing, algorithmic platforms, AI model deployment, foreign intellectual property, foreign regulatory templates.

Implications include dependency, technology transfer gaps, limited local capacity building, reduced bargaining power, risks of exporting bias, unfair terms, and potentially extractive data practices.

Digital Colonialism

This refers to the new forms of control, dependency and power asymmetry in the digital and AI sphere, where developing or formerly colonized societies remain subject to external influence through foreign-owned infrastructures, platforms, algorithms, investment and data flows. Like classic colonialism, which relied on railways and trade routes to extract value, digital colonialism operates through proprietary software, corporate cloud systems and centralized internet services that capture, exploit and commodify local data for external profit.

This phenomenon compromises digital sovereignty when critical infrastructural, legal, or algorithmic decisions are determined abroad, raising urgent questions about who sets global standards, whose values are embedded in AI systems, who profits from data, and whether fundamental rights: privacy, dignity, non-discrimination are preserved. Scholars have described it as a continuation of extractive logics under new technological guises, with Big Tech corporations imposing cultural norms, business models and algorithmic biases designed to maximize profit while presenting them under the rhetoric of “progress,” “development,” or “connecting people.”

Digital colonialism frames the global digital order as one in which the Global South risks remaining a consumer and data supplier, rather than an equal co-creator of the technologies that increasingly govern economic and social life. (To be continued).

THOUGHT FOR THE WEEK

“Some people call this artificial intelligence, but the reality is this technology will enhance us. So instead of artificial intelligence, I think we’ll augment our intelligence” (Ginni Rometty).

Prof Mike Ozekhome SAN

INTRODUCTION

The inaugural part of this piece was necessarily introductory. It examined the interplay between economic development and the demand for leisure; the growth and evolution of the entertainment industry- with a focus on Nigeria, specifically Nollywood. This week’s feature (its second and final installment) continues from where the previous week’s stopped with an assessment of other aspects of the industry like comedy and music. Thereafter, we discuss the potential of entertainment as the new ‘oil’ and conclude with a review of the impact emerging technologies such as Artificial Intelligence is having on the entertainment industry. Enjoy.

NOLLYWOOD (continues)

Nigeria’s biggest export to the world comes from her entertainment sector. In recent years Nigerian home videos, music and culture have found their ways into several African countries where they are dominating the local film and music industry.

A 2010 article by The Economist said thus: “Nigerian films are as popular abroad as they are at home. Ivorian rebels in the bush stop fighting when a shipment of DVDs arrives from Lagos. Zambian mothers say their children talk with accent learnt from Nigerian television. When the president of Sierra Leone asked Genevieve Nnaji, a Lagosian screen goddess, to join on the campaign trail, he attracted record crowds at his rally. Millions of Africans watch Nigerian films every day, many more than see American fare. And yet Africans have mixed feelings about Nollywood.” (The Economist. Lights, camera, Africa.http://www.economist.com/node/17723124).

So ubiquitous and pervasive is the Nigerian Entertainment industry that several African countries have actually raised alarm over what they term “the Nigerianization of Africa” (sort of a modern recolonization of Africa by Nigeria) –with some countries going as far as instituting measures to curb the growth of Nigerian films (and invariably Nigerian culture) in their country.
It is instructive to note that the Nigerian film industry has been able to propel itself to the current position it stands at without government support. The films are produced by individual financiers and marketed by private companies. However, recently- government and other international organization, like the World Bank, have begun to make effort to boost the industry. The Nigerian government and World Bank recently made available a loan scheme for movie producers and directors Nigeria’s entertainment and media market grew by 19.3% in 2014 to reach US$4 billion. By 2019, the market will be more than twice as big, with estimated total revenue of US$8.1 billion (tp://www.financialnigeria.com/nigeria-s-entertainment-and-media-industry-to-grow-to-8bn-by-2019-sustainable-photovideo-details-140.html#sthash.YKRy1xfI.dpuf).

COMEDY INDUTSRY

The Comedy sector of the Entertainment industry has become so huge that comedy has now become one of Nigeria’s export to Africa and the world. It is not yet clear how much or to what extent the sector contributes to the economy. A guess however, is that it is likely to be substantial. If not for anything, the very fact that the sector has acted as a catalyst to pull some Nigerian youth out of poverty into a life of affluence is more than enough contribution to the advancement of the economy. Comedians earn millions putting smiles on the faces of disgruntled Nigerians, giving them a short reprieve from the challenges faced on a daily basis. In addition to engaging their talents, entertainers also exploit their increasing celebrity status, resulting in income from endorsements of companies from a range of industries. The creative arts industry holds the potential to enrich Nigerians of all ages but also provides much needed therapy to help soothe the social woes that plague this developing nation.

NIGERIA MUSIC

Much like the film industry, the Nigerian music industry has grown over the years largely on individual efforts rather than governmental or institutional support. Nigerian music and the accompanying videos, are the most followed and watched, in Africa, with local acts collaborating with different music acts across the world from American’s Kanye West to Tanzania’s Diamond Platnumz. Davido’s signing with Sony Music has been described as a major game changer for Nigerian pop music. Another triumph is the story of Wizkid who is currently on a roll with an appearance on Drake’s album, as well as several other reported collaborations with Jidenna and Chris Brown.

Like Nollywood, the Nigerian music industry has enormous influence in the socio-cultural activities of the country –and indeed the rest of Africa. Nigerian musicians have coined several slangs (often nonsensical and meaningless) that have gained acceptance in mainstream Nigerian languages and are often weaved intricately into the social behavior, communication and behavior of the public.
It was reported that an estimated 1200 concerts and musical shows take place every year and account for a combined annual turnover of US$105.5 million from that sector alone!

ENTERTAINMENT AS THE NEW OIL

As stated above, Price water house Coopers came out with a report that the Nigerian entertainment industry is predicted to generate revenue in excess of $8 billion dollars by 2019. If President Buhari’s budget for 2016 is N6.02 trillion, and expected earnings from the industry are pegged at N2.51616 trillion ($8 billion at the official rate of N314.52), then the Nigerian entertainment sector is clearly at the forefront of the economy. If the entertainment industry, an industry currently underfunded and previously disregarded, can garner that much in terms of revenue, then Nigerians can be hopeful and confident of the future, despite the gathering economic storm clouds. As good as this sounds, there are other positive signs based on projections of the future growth direction of the industry (Naija.com. Feature: Entertainment as the alternative to oil for Nigeria. https://www.naij.com/823542-now-that-crude-oil-is-worthless-heres-another-option-for-nigeria.html).

Analysts had said that the movie segment made about N1.72trn in 2013. According to Business Day, the rebasing exercise shows the huge leap how the entire entertainment sector had been hugely underrated over the years. The sector was earlier classified amongst ‘other services’ that barely contribute N5bn to the annual GDP. The share has risen, sharply, from its once-insignificant status to become the first five. “What surprises me the most is the ‘Motions pictures, sound recording and music production’, which jumped to N9trn, which is a huge amount. I didn’t expect that kind of jump. Initially, it was under ‘other services’ where items that are too small are captured during the GDP computation,” (Leadership Newspaper. How Entertainment Contributes To Nigeria’s GDP. http://leadership.ng/entertainment/364405/entertainment-contributes-nigerias-gdp).

Also, in the last five years, the industry has grown in terms of quality and has been rated the third most valuable movie industry in the world, behind Hollywood and Bollywood. The development has also impacted on returns. The United Nations said, last May, that Nollywood is estimated to employ some 1,000,000 people and had the potential to create 1,000,000 more in the future if properly managed. Its release of about 50 films a week puts it in the same bracket in terms of production with movie-mad India, although revenues — thought to be about $590m a year — are considerably less.

ARTIFICIAL INTELLIGENCE IN THE MEDIA AND ENTERTAINMENT INDUSTRY

I agree with Aluko and Oyebode (https://www.aluko-oyebode.com/insights/artificial-intel-in-nigeria-issue-1/ accessed on 30th January, 2026) that the distribution of content in the global media and entertainment industry is rapidly changing. The reasons are not far-fetched: the increasing accessibility of content creation technologies such as high-resolution cameras, content development software, and smartphones, almost anybody can now create, publish, and share written, audio, and video content.

I also agree with them that this trend is further accelerated by the proliferation of the internet, which has led to the replacement of traditional media channels like cable and radio with on-demand streaming platforms like Netflix and YouTube. Consequently, consumers have potentially limitless options to choose from, in terms of media consumption, with the results that media companies are facing the need to raise the quantity as well as the quality of content they create to attract as many consumers as they can to drive higher value. This is where advanced technologies like Artificial Intelligence (AI) have proved handy in helping media companies to improve their services and enhance the customer experience.

I couldn’t agree more with their opinion that the following are instances of the use of AI in transforming the media and entertainment industry:

Content Personalization

We all enjoy popular SVOD platforms like Netflix, Hulu, and Prime which brings to us the kind of shows and movies that we love; this surely better than scrolling through their database searching for content that we prefer. That’s AI at the work. Additionally, content streaming sites have perfected their streaming recommendations according to different tastes and preferences for people of all locations, deploying machine-learning and AI algorithms to analyze user behavior, in terms of what genre of content users are mostly streaming in order to maximize the user experience. AI uses these data insights to create a highly personalized experience for every user.

Search Optimization

AI has also made it easier and more accurate to obtain search results and suggestions. For example, rather than searching for the title of a movie or the name of an item, you may just submit an image to Google and obtain results based on the image. Instead of searching for random lyrics to find the name of a song, you may play it and a streaming software like Shazam can identify the music for you. You may also instruct your phone to perform some actions after tapping the back or the screen for a particular number of time.
Regrettably, Nigeria has a long way to go in enacting appropriate universal AI regulation, forcing operators of these platforms to contend with mostly local laws, such as those dealing with copyright, when dealing with protected content. This also includes the Cybercrimes (Prohibition, Prevention, Etc) (Amendment) Act, 2024, in respect of illegal contents, Child Pornography and the Nigeria Data Protection Act and Regulations when dealing with consumers data.

CONCLUSION

John Litwack (The Lead Economist for Nigeria, World Bank.) stated that: “the large number of underemployed youth is a serious threat to the economic and political stability of the country. The median age in Nigeria is 14, and the population continues to grow at a rate close to 3 percent”. There is no doubt that Nigeria as a nation continues to remain one with tremendous potential.

However, it only remains that – a nation with tremendous potential – if Nigeria remains over dependent on the oil and gas industry and adequate investments are not made in initiatives that are more promising. The music industry continues to impress, transforming the global perception of Nigerians and employing teeming Nigerian youth whilst proving to be a lucrative venture for zealous entrepreneurs. Nollywood has also been identified as a promising industry with the potential to unlock both economic and social benefits. The industry has already hinted at its promise and is internationally competitive despite relatively little financial input. More investments need to be made to improve the quality and marketing of movies, but also enable the establishment of a self-sustaining domestic cinema industry. The industry however, remains far from its potential and with increased investments should not only help employ and entertain a significant portion of the Nigerian populace, but also provide forex flows from a growing international customer base. (The end).

THOUGHT FOR THE WEEK

“The world is a stage, the stage is a world of entertainment”. -Howard Dietz.

By Prof Mike Ozekhome

INTRODUCTION

Entertainment is a form of activity that holds the attention and interest of an audience, or gives pleasure and delight. It can be an idea or a task, but is more likely to be one of the activities or events that have developed over thousands of years specifically for the purpose of keeping an audience’s attention (The Oxford English Dictionary (Oxford University Press, 1971, Vol. 1 pp. 213–4)).

According to Wikipedia, Entertainment is any activity which provides a diversion or permits people to amuse themselves in their leisure time, and may also provide fun, enjoyment and laughter. People may create their own entertainment, such as when they spontaneously invent a game; participate actively in an activity they find entertaining, such as when they play sport as a hobby; or consume an entertainment product passively, such as when they attend a performance (Wikipedia, Outline of entertainment. https://en.wikipedia.org/wiki/Outline_of_entertainment).

The entertainment industry (informally known as show business or show biz) is part of the tertiary sector of the economy and includes a large number of sub-industries devoted to entertainment. However, the term is often used in the mass media to describe the mass media companies that control the distribution and manufacture of mass media entertainment. In the popular parlance, the term show biz in particular connotes the commercially popular performing arts, especially musical theatre, vaudeville, comedy, film, and music. It applies to every aspect of entertainment including cinema, television, radio, theatre and music.

ECONOMIC DEVELOPMENT AND THE DEMAND FOR LEISURE

Leisure time has been a determining factor in the development of recreation and entertainment as an industry. Entertainment has grown as an industry in step with increased income and time available for leisure and recreation. Economic development, often quantified in terms of productivity or output per person-hour, has enabled goods and services to be produced with fewer labor inputs. The growth of the entertainment industries has been directly related to the development of a modern economy and rising economic productivity, though precise estimation of the demand for leisure is a thorny task (Owen, John D. 1971. The Demand for Leisure. Journal of Political Economy 79 (1): 56–76.). An important issue in the development of entertainment as an industry is the rising productivity of workers, and in particular the ways in which technical progress has increased worker productivity. Progress in technology, in addition to creating the demand for entertainment products and services, has also led to the creation of much of the dominant forms of contemporary entertainment (Thomson Gale. Loc cit.).

THE ENTERTAINMENT INDUSTRY: GROWTH AND PROGRESS

The Compound Annual Growth Rate (CAGR) of the entertainment and media spending worldwide has been predicted between 2014 and 2019, by sector. Of the 13 sectors that make up the Entertainment and Media industry, film will grow at the seventh-fastest pace worldwide. The fastest is Internet advertising, which will grow 13.1 percent annually from 2013-2017. Print will bring up the rear, with magazine publishing growing at 0.3 percent, while the newspaper industry remains flat. A milestone will occur in 2016, when the global E&M category becomes a $2 trillion industry (http://www.billboard.com/biz/articles/news/global/1565728/study-global-entertainment-industry-poised-to-top-2-trillion-in).

Despite forecasts revealing that online formats will experience the most annual growth, a further breakdown of worldwide entertainment and media revenue in 2009, 2013 and 2018, by platform reveals that non-digital platforms such as magazine and newspaper publishing will continue to dominate. In 2009, digital revenue for the industry totaled 342 billion U.S. dollars and non-digital revenue totaled 1,038 billion U.S. dollars. By 2018, it is expected that digital revenue will total 994 billion.

Entertainment as an industry—in the United States alone—is responsible each year for $150 billion in expenditures and some 120 billion hours of consumed time (Vogel, Harold L. 1998. Entertainment Industry Economics: A Guide for Financial Analysis. 4th ed. New York: Cambridge University Press.). Entertainment as an economic sector consists of diverse products and services including motion pictures, television, music, broadcasting, print media, toys, gaming, gambling, sports, and fine arts (Thomson Gale, Entertainment industry. International Encyclopedia of the Social Sciences 2008.). In 2017, Americans will buy 1.3 billion movie tickets and pay an average price of $9.60 for them, according to PwC, representing a slow growth of 1.3 percent a year in admissions and 2 percent a year in ticket prices stateside.

Based on PwC’s Global Entertainment & Media Outlook, the global E&M industry, following a pandemic-related decline in 2020, has experienced a period of significant growth. The industry in 2026 has reached an approximate growth rate of US$3 trillion in revenues.

Following a 2.3% decline in 2020, the industry saw a 10.4% rebound in 2021. Global advertising revenue has increased to $1 trillion in 2026, with digital advertising continuing to grow, at a 6.6% or higher CAGR

The Key Growth Drivers of the entertainment industry in Nigeria today includes but not limited to:
Video Games: Global video games and esports revenue, totaling US$215.6bn in 2021, is forecasted to grow at an 8.5% CAGR to reach US$323.5bn in 2026.
Over-the-top (OTT) Video: Expected to grow at a 7.6% CAGR through 2026, pushing revenues to US$114.1bn.
Cinema: Projected to reach a new high in 2023, with revenues rising at an 18.9% CAGR from 2021 to 2026.
Virtual Reality (VR): Forecasted to grow at a 24% CAGR to US$7.6bn in 2026.

The Emerging markets continue to lead with higher CAGRs, including Turkey (estimated 14.2%), Argentina (10.4%), India (9.1%), and Nigeria (8.8%) between 2021 and 2026. In contrast, however, traditional TV has declined at a -0.8% CAGR from 2021 to 2026.

THE ENTERTAINMENT INDUSTRY OF NIGERIA

Nigeria’s entertainment industry is a booming global force, led by Nollywood (the film industry), the world’s second-largest by volume, and a vibrant music sector (Afrobeats), both driving significant economic growth, international cultural influence, and job creation, despite ongoing challenges like piracy and rising production costs, with streaming and digital platforms fueling its massive expansion.

Entertainment serves as a major force for social and economic good, the sector provides, educates, and releases stress. The Nigerian entertainment industry is a major economic driver, (a rapidly expanding global powerhouse), with revenues expectation of $4.9 billion in 2026. The sector contributes significantly to GDP, with over ₦1.97 trillion generated in 2023. Digital streaming and social media are major drivers, connecting local talent to international audiences.

The Entertainment industry in Nigeria comprise of the film sector, the music sector, the comedy sector, the fashion and the art sector. The Nollywood veteran, Richard Mofe Danmijo, while delivering a speech at Professor Pat Utomi’s Annual Lecture, on 15th January, 2015, titled: “Impact of Entertainment on Nigeria’s Economy”, surmised the contribution of the Entertainment sector to the economy of Nigeria in this way: “Nollywood, the film and video segment, is the clear leader. In the last couple of years, our music has taken the world by storm. Our art is making in-roads into the global marketplace. Fashion has set its footstool in the global arena. Life theatre has come alive and the new media has continued to make these different aspects of entertainment available to the world in real time,”

NOLLYWOOD

According to Wikipedia, the emergence of the video film market in Nigeria is traced back to the 1980s when television productions thrived. Jimi Odumosu’s Evil Encounter, a 1980 horror film released directly on television, was the first production to be a pointer to how lucrative making film directly on video can be (Wikipedia, Cinema of Nigeria. https://en.wikipedia.org/wiki/Cinema_of_Nigeria). The film was extensively promoted before being aired on the television, and as a result, had streets flooded in the following morning with video copies of the recorded broadcast. It was reported that the film became an instant hit at Alaba market, a commercial district which later became the hub of video distribution in this period and also eventually became the hub of piracy in Nigeria. Since Evil Encounter, it became common, especially in Southern Nigerian cities to see video copies of recorded television programmes traded on the streets (History of Nollywood”. Nificon. Retrieved 15 October 2014. http://www.nificon.org/about/history-of-nollywood/).

This method was adopted and built on by producers and distributors at Alaba Market to reinvent the film industry, since the Nigerian cinema culture was facing a major decline. The first film produced on video in Nigeria was 1988’s SosoMeji, produced by Ade Ajiboye. The film was also screened at the few available theatres at the time. Subsequently, Alade Aromire produced Ekun (1989) on video, which was screened at the National Theatre, Iganmu (Emeagwali, Gloria (Spring 2004). “Editorial: Nigerian Film Industry”. Central Connecticut State University. Africa Update Vol. XI, Issue 2. Accessed January 30th, 2026) Emejulu, Obiajulu A.; Amadi, Dan Chima (December 2014). “Living in bondage: A dream deferred or a promise betrayed for Igbo linguistic and cultural renaissance?”. Academic Journals. International Journal of English and Literature. Retrieved 7 April 2015).

However, the boom experienced in this era is generally believed to have been kick started by Kenneth Nnebue’s Living in Bondage (1992). Nnebue had an excess number of imported video cassettes which he then used to shoot his first film on a Video camera (Nigeria’s film industry, The Economist”. Economist.com. 2006-07-27.). Although Living in Bondage is often touted in the media as the “first commercial video film”, several historians have argued that the video film industry was already booming before Living in Bondage (Nnabuko, J.O.; Anatsui, Tina C. (June 2012). “NOLLYWOOD MOVIES AND NIGERIAN YOUTHS-AN EVALUATION” (PDF). JORIND 10. 10 (2). ISSN 1596-8308. Retrieved 18 February 2015).

At the commencement of major boom in the 1990s, marked by the release of the direct-to-video film Living in Bondage (1992); the industry peaked in the mid 2000s to become the second largest film industry in the world in terms of the number of annual film productions, placing it ahead of the United States and behind only India. The films started dominating screens across the African continent and by extension, the Caribbeans and the Diaspora, with the movies significantly influencing cultures, and the film actors becoming household names across the continent.

According to Muyiwa Babarinde , the influence of Nigerian films has also crossed beyond the Nigerian borders (Op-Ed Editor and MuyiwaBabarinde, Y! Report: Nigeria’s emergence as Africa’s media and entertainment superpower. http://ynaija.com/y-report-nigerias-emergence-as-africas-media-and-entertainment-superpower/). Late Tayo Aderinokun, cofounder of Guaranty Trust Bank (GTB), in a 2004 speech said: “According to the Filmmakers Cooperative of Nigeria, every film in Nigeria has a potential audience of 15 million people within the country and 5 million outside. These statistics maybe somewhat conservative considering that half of West Africa’s 250 million people are Nigerians.” (TayoAderinokun, There are many untapped business opportunities in Nigerian film industry. Presentation made at the 50th Art Stampede Session of the Committee for Relevant Art (CORA) held at The National Theatre, Iganmu, Surulere, Lagos, Nigeria on Sunday March 7th, 2004.).

To be continued…

THOUGHT FOR THE WEEK

“The world is a stage, the stage is a world of entertainment”. -Howard Dietz