Nigeria’s Entertainment Market to Hit $5.3bn - PwC

Nigeria’s entertainment and media industry is projected to grow to $5.3 billion by 2030, but heavy spending on connectivity raises questions about how much value local content producers, streaming platforms, gaming companies, and digital advertisers can capture as the market expands.

The latest Africa Entertainment and Media Outlook 2026–2030 by PricewaterhouseCoopers (PwC) forecasts that Nigeria’s entertainment and media revenue will rise from $3.8 billion in 2025 to $5.3 billion in 2030, representing an annual growth rate of 6.9 per cent, the fastest among the three African markets analysed.

However, connectivity, which includes spending on access to communication and internet services, will remain the industry’s largest revenue segment.

It is projected to increase from $2.5 billion in 2025 to $3.5 billion by 2030, accounting for 66 per cent of Nigeria’s total entertainment and media revenue.

This concentration presents a challenge for businesses seeking to turn rising digital consumption into sustainable revenue.

While wider connectivity creates opportunities for streaming, gaming, advertising and local content distribution, consumers must also pay for the data and access required to use these services.

The report’s projections suggest that Nigeria’s entertainment market is expanding rapidly, but growth in audience numbers alone will not determine how much revenue local businesses can retain.

“Nigeria’s E&M market is forecast to expand from US$3.8bn in 2025 to US$5.3bn in 2030, representing a CAGR of 6.9% and making it the fastest-growing market among the three countries analysed,” PwC said.

Pinnacle Daily reports that compound annual growth rate (CAGR) is the average yearly rate at which a market grows over a specified period, assuming growth is compounded. It provides a common basis for comparing markets of different sizes.

Streaming offers a new growth engine

One of the clearest opportunities is online video streaming, where Nigeria is projected to record the fastest growth globally.

PwC forecasts that revenue from over-the-top (OTT) video services, which deliver films and other video content over the internet rather than through traditional broadcast or cable television, will rise from $31 million in 2025 to $78 million in 2030, representing a CAGR of 20.4 per cent.

“OTT video in Nigeria is one of the fastest-growing E&M segments across Africa, at a 20.4% CAGR. Nigeria is the fastest-growing OTT market globally,” the report said.

The growth reflects the opportunity created by Nigeria’s large, youthful population and expanding digital consumption.

Partnerships between streaming services and telecommunications operators, including mobile data bundles, are also helping consumers access online video.

However, the average revenue per OTT subscription in Nigeria stands at $42, compared with a global average of more than $100.

This suggests that the market’s growth strategy depends more on reaching large audiences at relatively affordable prices than on charging high subscription fees.

For streaming businesses, this makes audience growth and affordable access important, but it also highlights the need to convert expanding viewership into commercially sustainable revenue.

Traditional television will remain a substantial part of the market, as PwC projects its revenue in Nigeria will rise from $257 million in 2025 to $281 million in 2030, representing annual growth of 1.8 per cent. The slower pace, however, contrasts with the projected expansion of online video.

The difference points to a gradual shift in how Nigerians consume video content, creating opportunities for producers and distributors that can reach audiences across both traditional television and digital platforms.

Nollywood gains from cinema and streaming

Nigeria’s film industry is also positioned to benefit from the expansion of cinema and online distribution.

PwC projects cinema revenue to rise from $10 million in 2025 to $29 million in 2030, representing a compound annual growth rate of 22.8 per cent. This makes cinema Nigeria’s fastest-growing entertainment and media sub-segment by growth rate in the report.

Nollywood films accounted for nearly 50 per cent of national box-office revenue in 2025, a milestone that highlights the commercial appeal of local productions.

The performance suggests that Nigerian audiences are supporting domestic films in cinemas, while digital streaming offers another route for producers to distribute their work to viewers who prefer watching content on demand or through mobile devices.

Emerging technologies could also help local productions reach international audiences. AI-enabled subtitling, translation and localisation tools can reduce the barriers involved in adapting content for viewers in different languages and markets.

The opportunity, however, extends beyond producing more films, as the ability to distribute content across multiple channels and reach paying audiences will be important to turning the industry’s growing popularity into lasting commercial value.

Nigeria’s music, radio and podcast market is also projected to expand, with revenue expected to increase from $316 million in 2025 to $438 million in 2030, representing annual growth of 6.7 per cent.

The report links this expansion to the domestic and international reach of Afrobeats, which has increased the potential audience for Nigerian music and audio content.

Gaming, advertising widen revenue opportunities

Video games and esports represent another growing part of Nigeria’s entertainment economy. PwC projects revenue from the segment to rise from $286 million in 2025 to $431 million in 2030, equivalent to annual growth of 8.5 per cent.

Social and casual mobile games generated 77 per cent of Nigeria’s gaming revenue in 2025. These games can reach consumers through smartphones without requiring the expensive consoles and specialised equipment associated with some other forms of gaming.

In-app advertising is expected to be a major source of growth, giving businesses opportunities to earn revenue by displaying advertisements within games.

Internet advertising is also expanding. PwC forecasts that spending in Nigeria will increase from $279 million in 2025 to $439 million in 2030, representing a compound annual growth rate of 9.5 per cent.

Within the market, retail paid search is projected to grow by 17.2 per cent annually and overtake traditional paid search by 2028.

Pinnacle Daily also reports that paid search refers to advertisements that businesses pay to display when users search online, while retail paid search focuses on product-related searches that are more directly connected to shopping decisions.

The shift points to growing demand for advertising formats that can connect marketing expenditure to consumer purchases.

For Nigerian businesses, this could increase the value of digital platforms that help retailers reach consumers when they are ready to buy.

Nigeria outpaces regional peers

Nigeria’s projected growth compares favourably with South Africa and Kenya, although the three markets differ in size and maturity.

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South Africa remains the largest of the three entertainment and media markets, with revenue projected to increase from $16.6 billion in 2025 to $19.4 billion in 2030, representing annual growth of 3.2 per cent.

Kenya’s market is forecast to rise from $4.7 billion to $6 billion over the same period, representing growth of 5 per cent annually.

Nigeria’s projected 6.9 per cent rate is higher than that of both countries, despite its smaller overall market size.

Connectivity will continue to account for a substantial share of revenue across all three markets.

By 2030, it is projected to represent 75 per cent of Kenya’s entertainment and media market, 66 per cent of Nigeria’s and 60 per cent of South Africa’s.

The differences in their digital segments also show how the markets are developing.

Nigeria’s OTT video revenue is projected to grow by 20.4 per cent annually, compared with 15.9 per cent in Kenya and 7.6 per cent in South Africa.

South Africa’s traditional television revenue is forecast to decline by 3.7 per cent annually, from $1.915 billion in 2025 to $1.587 billion in 2030.

Nigeria’s traditional television market, by contrast, is projected to continue growing, albeit at a much slower 1.8 per cent annual rate.

The global entertainment and media industry is forecast to expand from $3.5 trillion in 2025 to $4.2 trillion in 2030, representing annual growth of 3.4 per cent.

Nigeria’s projected growth rate therefore exceeds the global forecast as well as those of the two African markets examined alongside it.

PwC said Africa’s opportunity lies in building on expanding digital participation rather than simply following trends established elsewhere.

“Africa’s opportunity is therefore not simply to follow global industry trends, but to shape them by translating expanding digital participation into enduring audience relationships and lasting commercial value,” the report added.