Beyond Box Office Success, Nollywood Filmmakers Struggle to Break Even

In recent months, Nollywood has made a visible return to the big screen. The slowdown in streaming, with major platforms like Netflix and Prime Video scaling back on local acquisitions, has pushed many Nigerian filmmakers to re-embrace cinema distribution. From romantic comedies to Yoruba epics, the local box office has been bustling with new releases and seemingly record-breaking figures.

Titles like “Reel Love,” “Iyalode,” “Ori: Rebirth,” “Labake Olododo,” “Owambe Thieves,” “Radio Voice,” and “Red Circle” have generated buzz and, by all indications, have performed well in cinemas. Muyiwa Ademola’s “Ori: Rebirth” crossed N400 million, becoming the highest-grossing Nollywood title of the year. Timini Egbuson’s “Reel Love,” which grossed over N300 million, entered the all-time top 10 list of Nigerian films at the box office.

To the public, these numbers suggest success. But within the industry, the mood is more restrained. Many filmmakers say the figures do not reflect actual earnings or returns on investment. With rising production costs, limited revenue shares, and high exhibition cuts, several producers say cinema is still a financial gamble.

“The audience sees the headlines and thinks we’re cashing out,” one filmmaker said privately. “But what’s left after the exhibitors and distributors take their share? It’s barely enough to recover costs.”

In April, filmmaker James Abinibiknown for “Miss PJ” and “Mentally”publicly advised colleagues to stay away from cinema releases altogether. In a now-viral post, he claimed that no Nollywood producer had broken even at the box office this year.

“It’s a loss for everybody,” Abinibi wrote. “Not a single producer has made back their investment from ticket sales in 2025. It’s time to stop deceiving ourselves.”

His statement sparked debate among industry insiders. Some agreed, citing poor revenue sharing models and limited marketing budgets. Others were more cautious, noting that not all cinema releases are equal, some projects receive better promotional support or target more profitable weekends.

Still, the broader concerns remain. Distribution bottlenecks, piracy threats, and a lack of financial transparency continue to make cinema a risky proposition for most independent producers. Even as Nollywood’s output increases and more cinemas open across the country, filmmakers are asking whether the current exhibition system is truly sustainable.

One major concern is how revenue is split between filmmakers, distributors, and exhibitors. While terms vary, producers often receive less than 35% of the total box office gross. After weeks of screenings, even a film that grosses ₦100 million might return only a fraction of that to the producer—well below production costs.

As more filmmakers turn to cinema in the absence of streaming deals, questions around profitability are becoming more urgent. Many are exploring hybrid strategies, such as releasing first in cinemas before selling streaming rights, or using YouTube for direct distribution.

For now, the tension between visibility and viability remains. Nollywood filmmakers may be scoring big at the box office, but without significant reform in distribution and revenue structures, the numbers alone don’t tell the full story.

Expanding on his statement, The Nollywood Reporter spoke with Abinibi and other notable filmmakers in the industry about the challenges of cinema distribution and the unspoken financial losses many continue to face.

Marketing Budget and Box Office Success

The significance of marketing cannot be overruled in any business endeavour with filmmaking inclusive. Whether a film’s box office numbers climb up or not is usually tied to its marketing budget. 

As earlier noted by the CEO of the EbonyLife Group and Filmmaker Mosunmola Abudu, there is insufficient marketing budgets for African films. Abudu stated that having such budgets can contribute largely to the success of a film. 

Sharing his thoughts on the relationship between marketing budget and box office numbers, Abinibi acknowledged the importance of marketing but criticised the ‘copycat’ approach in Nollywood. 

“There’s very little innovation in how we promote films in Nollywood. Everyone’s just copying whatever worked for the last “successful” producer, like that’s the magic formula,” he noted. For Abinibi, amid the buzz about a film, the best form of marketing for filmmakers is creating a spectacular film that it is hard for anyone to ignore. 

Painting an analogy with an advertising popular phrase, Nollywood filmmaker and AMVCA winner, James Amuta of  “When the Monsters Come Out” and “Nightfall in Lagos” also shared his opinion. 

“You can’t wink in the dark and expect someone to see you,” he reiterated, corroborating Abinibi’s stand on the importance of marketing in film. Amuta believes that while marketing is often overlooked, it is the most important aspect of filmmaking. “In fact, your marketing budget should typically be twice the budget of your film, or at the very least, equal to it—or at minimum, half of it,” Amuta added.

To buttress his agreement on the significance of marketing, Dr. Sherif Olorunrinu Adekunle of Konirewa Studios Ltd with popular credits like; “Gbese” and “Hey Stranger” identified Oscar-winning “Anora” as an example. The film grossed over $41 million against its $5-6 million budget. 

“That shows how important marketing is in filmmaking. It goes hand-in-hand with distribution. Yourarely hear them mentioned separately. It’s always “sales, marketing, and distribution,” Sheriff noted. 

Filmmakers’ Silence Amid Financial Losses 

With the several box office analysis highlighting the financial losses prevalent in Nollywood, one wonders why many are silent about it. Beyond the box office hype, Nollywood filmmakers seem to hide their pain, especially from their audience but why? 

“Everyone keeps quiet publicly, probably so they don’t look like they’re failing. Meanwhile, people are running into debt just to keep up appearances,” Abinibi said.  He identified the ego tripping in Nollywood, which makes silence the best option for filmmakers to appear successful and competent. However, the “Split” series director concluded that real growth comes from honest conversations, not curated success stories.

Sherif identified culture as a reason for filmmakers’ silence amid financial losses. According to him, Nigerians are not often open when it comes to money. “We don’t know the budgets of our blockbusters. Even for streaming releases, the data isn’t made public. We’re left guessing. “The Black Book” is the only recent film where they disclosed the budget—₦1 billion. And even that wasn’t clearly broken down,” he said. 

Drawing comparison with the transparency that exists in Hollywood, Sherif said details about a film’s budget, box office numbers, and local and global revenues are publicly known, attracting investment. 

For Amuta, the silence of filmmakers is subjective because filmmaking is both art and business. He disagrees that filmmakers intentionally avoid the conversation about financial losses. According to him, it is more of a state denial to accept that they actually made a loss. 

“Because if something ends in perpetuity, you’re talking about at least 100 years. Then it’s premature to conclude, “Oh, I haven’t made my money back in three years, so it’s a loss,” he noted. 

How Audience Reception Influences Box Office Success  

Films are made for an audience. The end goal of every film is to have its audience experience what the filmmaker hopes they will feel. In Nollywood, the same applies. 

In a country like Nigeria with over 250 million people, if calculations are done right, the number alone signals a massive box office potential for filmmakers but where are the cinemas? 

Despite the limited cinemas, the question of whether audience reception influences its box office success still arises. Sherif agreed to this notion, stating how the audience’s reception equates to the “Word of Mouth” marketing, bringing more people to watch a film. Again, he lamented the lack of transparency in auditing cinema numbers. 

Adding his voice to the ‘Word of Mouth’ marketing conversation as one of the influences that audience reception brings to a film, Amuta said it is globally recognised and as such, it is critical. 

“People will begin to judge your film based on how it’s received during the opening weekend. That means your entire marketing campaign must be geared toward getting as many people as possible to show up for the opening weekend,” he said. 

He said perception is often different from reality, and sometimes even better than reality. It is usually about how the audience perceives filmmakers’ projects. This is why the opening weekend is so crucial and filmmakers must orchestrate the reception. 

In exploring audience reception, Amuta noted that it should not be the sole responsibility of filmmakers. To achieve solid marketing, he suggested that professionals who can help create such audience reception should be engaged to boost box office success. 

“Our cinema industry may be small compared to other parts of the world, but we work with what we have. So yes, make a great film. Then go out there and get people to endorse it. That’s how you create word of mouth—and that’s what drives others to want to be part of the experience too,” he added. 

Is YouTube A Distribution Solution For Nollywood? 

The rise of YouTube as a distribution platform for Nollywood filmmakers. For some time, Nigerians have witnessed YouTube at the centre of distribution since the pullback from Prime Video and Netflix. 

This development comes with its undeniable positive sides as confirmed by Amuta and Abinibi in separate interviews with TNR. Sheriff, on the other hand, dwelt on its bottlenecks. 

Filmmaker Abinibi identified direct access to the audience as one of the features that YouTube offers against cinema politics. 

“And if you play your cards right, you can actually build a loyal fanbase. The money might not be massive upfront, but it adds up over time. Plus, you get instant feedback and full control over your content,” he said. 

In his contribution, Amuta also praised the freedom that YouTube gives filmmakers. “YouTube has always been a haven for creators—people who just want to make content without limitations or restrictions.”

Sheriff criticised the lack of strategy that comes with filmmakers pivoting to YouTube based on trends. He cited a similar scenario with when filmmakers left cinema for streaming platforms and after they pulled out, filmmakers returned to cinemas. 

“No structure, no long-term plan,” he described their actions. This also makes films prone to piracy. YouTube being an American company, Sheriff said it is a ‘huge risk’ as one policy shift can lock out Nigerian content. His remedy is to have a robust local platform in Nigeria. 

Curbing Nollywood Distribution and Financial Woes 

Each day, Nigerian filmmakers are working on a film project whether silent or loud. For every film, the question is always about where to distribute the film for wider reach and profitability. 

Whether it is on a streaming platform, cinema big screen cinema, Television or the YouTube platform, the distribution medium is a determinant of a film’s commercial success. 

For Nollywood, what is the way forward to curb the distribution and financial challenges filmmakers have to deal with? Abinibi suggested telling intentional stories, creating proper distribution structure and advocating for audience support. 

“First of all, I believe we should declare a state of emergency on distribution in Nollywood. That’s how serious the situation is. We don’t have enough sales or distribution infrastructure, and until we solve that, funding will always be a challenge. Every time I talk to potential investors, the first thing they ask is, “How will I get my money back?” That’s a distribution issue,” Sheriff shared. 

He called for private sector collaboration with FinTech companies. “They can help us build something like a “FilmTech” ecosystem, where we create tech-driven platforms for distributing Nigerian films. The demand is there.” 

Lastly, Amuta said Nollywood needs to start designing cinemas for the common man especially to make it more accessible. “If we build a stronger cinema culture in Nigeria. And with that culture, films will start breaking even more often.”

He noted that it was incomparable to juxtapose Hollywood’s 6,000 and Bollywood’s 3,000 cinemas to Nigeria’s barely enough cinema distribution systems. 

“So when you’re marketing a film, you can’t think in isolation. You’re targeting, say, 230 million people. Let’s say you hope for just 1% of that audience—that’s 2.3 million people. You want to sell 2.3 million tickets. But where are the cinemas?” he said. 

With all these solutions, confronting the distribution and financial challenges in Nollywood may not sound easy. However, conversations around it are gaining momentum, and a sustainable solution is definitely on the horizon.

Additional reports from Alo Folakemi and Fareedat Taofeeq