Today we turn our attention to Nigeria’s creative sector (arts and entertainment) 2018. The film industry is seen as a dominant player within this sector and has grown rapidly over the past two decades. Based on industry sources, an average of 50 films are released on a weekly basis and demand for Nollywood movies extends well beyond Nigeria. We understand that the film industry is one of the country’s largest non-oil exports. Furthermore, Nollywood is said to be the second largest employer in Nigeria after agriculture.
· The national accounts from the NBS show that the entertainment industry grew by 3.5% y/y in Q4 2017. However, we emphasize that this is from a very low base as the sector accounts for just 0.2% of total GDP.
· To support growth within the sector, the FGN granted most segments within the creative industries including Nollywood conditional access to pioneer status incentives. These include holidays from the payment of companies’ income taxes as well as withholding tax on dividends from pioneer profits for an initial period of three years. This duration can be extended by two additional years.
· Similar to other sectors across the economy, poor access to finance limits sustained growth across the film industry’s value chain. In H2 2017 it was widely reported that the FGN provided a N1.8bn (US$5.9m) grant to support the film industry via the “Project Act Nollywood” initiative.
· We see the sector gaining more ground in the near future. There are on-going conversations around partnerships with the Norwegian and Korean film industries. Recently, Sony Pictures signed a three-year deal with Nigeria’s leading entertainment network to produce tv projects for global distribution.
· The industry is positioned to become a huge fx earner via export earnings. However, sizeable investments will be required to realise this potential.
. TCN, NDPHC to inaugurate 190 transmission, distribution projects: The minister of power, works and housing, Babatunde Fashola, on Monday announced that the Transmission Company of Nigeria (TCN) and the Niger Delta Power Holding Company (NDPHC) were set to inaugurate over 190 electricity transmission and distribution projects across the country in a few weeks. (Source: Punch)
. FAAN installs CCTV cameras at Lagos, Abuja airports’ airside: Federal Airport Authority of Nigeria (FAAN) has commenced the installation of Closed Circuit Television (CCTV) cameras at airports’ airsides. The airports are the Murtala Muhammed Airport (MMA), Lagos and the Nnamdi Azikiwe International Airport (NAIA) in Abuja. The general manager, corporate communications of FAAN, Henrietta Yakubu, disclosed this yesterday in Lagos. (Source: Guardian)
. Shell says Nigeria payments and oil theft climb in 2017: Shell’s payments to the Nigerian government grew to US$4.32bn in 2017, up nearly 19% y/y from US$3.64bn in 2016, according to its annual sustainability report released on Monday. Crude oil theft from pipelines of Shell’s Nigerian subsidiary SPDC increased by about 50% to roughly 9,000 barrels per day (bpd) in 2017 from 6,000 bpd in 2016, the report said. (Source: Reuters)