Nigeria’s entertainment, media revenues to hit $4.9billion

Total revenues from Nigeria’s Entertainment and Media (E&M) sector are projected to grow from $4.5 billion in 2025 to $4.9 billion this year, with the creative economy contributing two per cent.

PwC Nigeria, which gave this projection, said the $4.9 billion growth is driven by demographic trends, streaming adoption, and strong and expanding adoption of digital distribution channels.

PwC, in its ‘2026 Nigeria Economic Outlook: Turning Macroeconomic Stability into Sustainable Growth’ released last week, said the projected growth of Nigeria’s E&M sector reinforces its position as Africa’s fastest-growing E&M market.

Providing more details, PwC said Over-The-Top (OTT) video, cinema, music radio and podcasts constitute the creative economy segment which will account for two per cent of the total E&M sector revenues in 2026.

The Outlook, which was made available to The Nation, specifically said growth is increasingly digitally led, with OTT video revenues rising from $33 million to $37 million and music, radio and podcasts expanding from $67 million to $73 million, reflecting rising streaming and audio consumption.

The PwC report noted that mobile internet penetration, cheaper data plans, and smartphone adoption continue to shift consumer behaviour towards on-demand and digital-first content, particularly among Gen Z and millennial audiences.

It further stated that continued investment in fibre rollout and Five Generation (5G) deployment is expected to unlock new digital experiences and monetisation opportunities, supporting further E&M sector expansion beyond 2026.

Investment in the creative sector through various government and private sector interventions such as the Creative Economy Development Fund, the report said, may also drive the growth in the sector this year.

The adoption of technology in the creative sector surged in 2025, driven by private sector involvement and government measures such as the National Council for Arts and Culture (NCAC’s) launch of the Council for Creative Technology Futures (CCTF).

The CCTF serves as a high-level platform for policy, strategy, and implementation, harnessing technologies such as Artificial Intelligence (AI), Augmented and Virtual Reality (AR/VR), Web3, and blockchain across more than 49 creative industry sectors.

The CCTF will guide the creative industries into a digitally empowered future, equip creators with global tools and market access, and strengthen Nigeria’s position as a cultural and technological powerhouse.

PwC said this year, the sector is set for strong tech-driven growth, powered by government initiatives like Investment in Digital and Creative Enterprises Program (iDICE), rising Venture Capital (VC) funding, and global success in Afrobeats and Nollywood.

“We expect wider use of AI for content creation, OTT streaming, AR/VR experiences, and gaming supported by 5G expansion,” the report by the multinational professional services company said.

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The iDICE is a Federal Government’s initiative promoting investment in digital and creative industries. It is part of Nigeria’s efforts to build back better, greener, and more inclusive, and to create more sustainable jobs for its youthful population.

The $617.7 million program targets Nigerians aged 15 to 35 years who are involved in innovative, early-stage, technology-enabled start-ups or in creative sector micro, small and medium sized enterprises.

The program is co-financed by the Federal Government through the Bank of Industry (BoI), African Development Bank (AfDB), the Agence Française de Développement (AFD) and the Islamic Development Bank (IsDB).

Despite the positive outlook for Nigeria’s E&M market this year, PwC Nigeria said funding gaps, infrastructure constraints, and piracy risks may limit upside, though targeted public and private investment could support growth.