IS ENGAGING IN NOLLYWOOD CINEMA RELEASES A LOSER’S GAME? Where Omotola Got It Wrong And Why 95 Percent of Nigerian Theatrical Movies Are Not Profitable

****Plus 7 Powerful Strategies To Make Your Movies Pay!

When Omotola Jalade-Ekeinde, one of Nollywood’s most revered legends, recently shared her frustrations on the crushing charges and taxes swallowing up movie revenue in Nigerian cinemas, it sparked a firestorm—and rightly so. She lamented how exhibitors, distributors, government taxes, and agents take so much from box office sales that next to nothing remains for the actual filmmaker who birthed the vision, raised the funds, and took the risk.

Omosexy, you are absolutely right. Your frustration is shared by thousands of passionate producers in Nigeria who have to beg, borrow, and bleed to get their films to the big screen—only to end up with crumbs.

But here’s the kicker…

Nigerian producers may actually be better off than their American counterparts!

The truth is that Hollywood filmmakers may be having it worse than Nollywood in the area of Net Profits From Box Office Ticket Sales. It’s hard to believe, but the stats prove this, In the U.S.—the holy land of Hollywood—filmmakers often earn LESS than five percent or ten per cent of their box office gross, after:

• 50–55 percent is taken by cinema chains (Regal, AMC, Cinemark),
• 15–35 percent goes to the distributor.
• Massive marketing costs (P&A) which are recouped FIRST by marketers,
• Agents, lawyers, taxes, and guilds also take their cuts.

What’s left for the producer? Often, nothing. Even in billion-dollar franchises, most creative originators don’t profit directly from ticket sales.

So my dear Legendary Omo Sexy (I still think the battle for Female GOAT of Nollywood is between you and Genevieve). Box Office bleeding through crazy charges and taxes is not just a Nollywood problem—it’s a global system skewed against creators. The theaters, the Distributors; the Govt; the Marketers; the Advertisers; the Lawyers are all like bloodsuckers who must take their sip of your box office before you get your turn at the trough at which time virtually nothing is left.

That’s a fact whether you are making movies in Nollywood, Bollywood, Hollywood or Cannywood. The Box office in every ‘wood’ is similarly infested.

But here’s the truth that few want to admit: Cinema release is not a profit engine—it’s a promotional platform (the profit comes elsewhere beyond box office tickets).

You don’t go to cinemas to make money. You go to build brand equity, attract streaming deals, court international buyers, and signal quality. The real money? It’s in what comes BEFORE and AFTER the premiere cinema run.

Unfortunately this is the area of the movie business most Nollywood filmmakers still struggle with

Why 95 Percent Of Nollywood Theatrical Movies Are Not Profitable

1. Poor financial planning: Before or after the cinema run, most producers focus only on production, ignoring monetization.
2. Over dependence on box office- They falsely believe cinema income is the main revenue. I remember my shock at getting my final cheque after the successful box office run of my Ghetto Dreamz movie about the musician Dagrin in 2012. I went into a depression.
3. Ignorance of revenue stack – No strategy for digital, merchandizing, diaspora, brand sponsorship or licensing income.
4. Weak marketing – Few invest in serious PR or target audience building. Most make a cinema movie for say N100 Million but spend N5million only in marketing and wonder what happened.
5. Lack of business education – Many guilds focus on politics, not profitability or movie business education for their followers

7 Proven Strategies to Increase Film Profitability in Nollywood

I am not an expert on movie monetization (I confess that I myself is still trying to figure it out and mostly still in research stage because execution is harder than theory) but here are some ways I have come to learn that entrepreneurial filmmakers can monetize their movies.

1. Pre-sell Streaming Rights – Before you even release the movie, shop it to Netflix, Showmax, Prime Video, ROK, IrokoTV and more. Some films make their entire profit upfront.
2. Package TV Licensing Deals – Sell rights to Africa Magic, ROK on DSTV, and even NTA or AIT. These platforms pay per title or per broadcast cycle. A good film can earn multiple repeat fees.
3. Build a YouTube Monetization Engine –
   Own your own channel, build an audience, and earn via AdSense + brand partnerships. Many filmmakers earn more monthly on YouTube than from box office.
4. Secure Brand Sponsorships & Product Placements – Plan your story to include brands, products, and shout-outs that fit organically. Charge N500K to N5M per placement depending on reach and genre.
5. Monetize the Diaspora – Create limited screening tours in London, Houston, Johannesburg, etc. Many diaspora communities are hungry for quality Nigerian stories—and they will pay.
6. Leverage Film Festivals & International Grants – Submit to AFRIFF, TIFF, Berlinale, Sundance, ZIFF, and win grants, awards, and distribution contracts. Festivals increase global visibility and perceived value.
7. Repurpose Content into Other Formats – Turn your film into merch (T-shirts, mugs), novels, web series, or behind-the-scenes content. Monetize across multiple verticals and platforms.

What we need now is to start experimenting with some of these options and more and figure out what works and what’s jsit theory for us

It’s time Nollywood Guilds and Associations—DGN, AMP, ANTP, AGN, MOPPAN—wake up and do their real job:

Train your members to profit from their creativity—not just win awards and titles!

Instead of endless AGMs and power tussles, let’s see more

• Monetization masterclasses
• Partnership brokerage with streaming platforms
• Legal workshops on licensing and IP protection
• Structured mentorship on multi-channel film revenue.

If our industry bodies continue to chase prestige without profit, the industry will keep losing its best talents to burnout, bankruptcy, or migration.

Final Word: The Cinema Is a Stage—Not the Bank

Omotola is right to call attention to the seemingly unfair deductions, but let’s also flip the script. No smart entrepreneur relies on a single revenue stream—and movie producers shouldn’t either. Box office is not the magic bullet for profitability.

Let our filmmakers learn to think beyond the big screen, plan multiple exits, and monetize their brilliance through every avenue possible.

Nollywood is not really a loser’s game—unless you play it with your eyes closed and refuse to broaden your knowledge about the business side of movie making.

Ope Banwo
Mayor Of Fadeyi
CEO, Stingomania Entertainement