Tax Incentives & Grants - Nigeria

Nigeria, home to Nollywood, the world's second-largest film industry by volume, offers significant opportunities for filmmakers through government initiatives, international partnerships, and private investment. The industry is a vital part of Nigeria's creative economy, contributing approximately 2.3% to GDP and employing over one million people.

Nigeria’s film industry is poised for sustained growth, backed by a strong cultural identity, increasing global recognition, and a supportive framework of funding initiatives. By addressing challenges such as piracy and distribution, Nollywood has the potential to solidify its position as a global powerhouse in the film industry.

  • Project Nollywood

    • Overview:

      • Launched in 2006, this ₦100 million (US$781,000) initiative aimed to improve the quality of Nigerian films.

    • Success Stories:

      • Supported films such as Caught In The Middle and Letters to a Stranger.

    • Focus Areas:

      • High-quality storytelling and the enhancement of technical expertise.

    Creative and Entertainment Industry Intervention Fund

    • Established: 2010

    • Fund Size: ₦30 billion (US$200 million)

    • Purpose:

      • Supports training, infrastructure, and production in the entertainment and creative sectors, including Nollywood.

    • Administered By: Nigerian Export-Import Bank (NEXIM) and Bank of Industry (BOI).

    NollyFund

    • Overview:

      • Launched by BOI in 2015, this scheme provides loans to film producers for commercially viable projects.

    • Features:

      • Focus on high-quality, marketable scripts.

      • Advisory group of industry professionals ensures project viability.

    Creative Fund

    • Established: December 2023

    • Fund Size: ₦5 billion

    • Purpose:

      • Targets the growth of Nigeria's creative industries.

      • Initial disbursement in May 2024 allocated ₦1.5 billion to four major film projects.

  • African Export-Import Bank (Afreximbank) African Film Fund

    • Fund Size: $1 billion

    • Purpose:

      • Co-financing large productions with international studios.

      • Supporting African filmmakers in producing globally competitive content.

    • Impact:

      • Boosts Nollywood's ability to compete in international markets.

    International Finance Corporation (IFC) Partnership

    • Recent Development: October 2024

    • Key Features:

      • Agreement with Nigeria’s Central Bank to provide over $1 billion in local currency financing for Nigerian businesses, including the creative sector.

      • Reduces foreign exchange risks for filmmakers by offering local currency loans.

  • Providus Bank Partnership

    • Overview:

      • Collaborated with the government to offer loans to filmmakers.

    • Terms:

      • Borrowers repay 30% of the film's proceeds to the bank.

    • Impact:

      • Provides a lifeline for Nollywood projects with high commercial potential.

    Labari Africa Productions Fund

    • Fund Size: $3 million

    • Established: 2022

    • Purpose:

      • Targets Nollywood films and projects with international appeal.

    • Objective:

      • Enhance the global visibility of Nigerian cinema.

  • General Tax Benefits

    • While Nigeria does not offer a formal tax rebate program for filmmakers, various government initiatives indirectly reduce the financial burden on productions through grants, infrastructure support, and streamlined regulatory processes.

    Federal Ministry of Information and Culture Support

    • Advocates for reduced regulatory fees for filmmakers using public spaces and historical sites for filming.

  • Expanded Funding

    • The government and private sector continue to explore new avenues for financing, including public-private partnerships and international co-financing agreements.

    Global Distribution

    • Partnerships with platforms like Netflix and Amazon Prime Video are increasing Nollywood’s reach, allowing Nigerian stories to resonate with global audiences.

    Digital Transformation

    • As Nigeria continues to develop its digital infrastructure, filmmakers can explore innovative formats like web series and virtual reality experiences.