Nigeria’s entertainment and media (E&M) sector is on track to achieve remarkable growth in the next six years, according to a PricewaterhouseCoopers (PwC) report. The report, titled African Entertainment and Media Outlook 2023-2027, predicts Nigeria’s E&M revenue will double from $6 billion in 2022 to $12.9 billion by 2027, with a compound annual growth rate (CAGR) of 16.5%.
This growth rate is the highest among the three African markets covered by the report: Nigeria, South Africa, and Kenya. The report attributes Nigeria’s impressive performance to the rapid expansion of internet access, especially through mobile devices, which has enabled millions of Nigerians to access online content and services.
The report estimates that the number of mobile internet subscribers in Nigeria will increase from 54 million in 2022 to 78 million in 2027, representing a penetration rate of 29.5%. However, this rate is still below the global average of 52.6%, indicating that there is still room for further growth in the Nigerian market.
The report also notes that the deployment of 5G networks in Africa faces several challenges, such as regulation, affordability, geography, and investment. As a result, the adoption of 5G smartphones in Africa is still low compared to the rest of the world. In 2022, only 3.1% of smartphone connections in South Africa, 2.1% in Kenya, and 1.2% in Nigeria were 5G-enabled.
Despite the slow uptake of 5G, the report expects that the improved internet connectivity will create new opportunities for consumers and advertisers in the E&M sector, especially in areas such as music and video streaming, gaming, and the metaverse. These areas are expected to drive the growth of internet advertising and internet access, the two largest segments of the E&M market globally.
The report also forecasts the performance of other segments of the E&M market in Nigeria, such as television, radio, cinema, newspapers, magazines, and books. The report projects that all segments will grow in revenue, except for newspapers, consumer magazines, and books, which will decline slightly due to the shift to digital platforms.
Nigeria’s E&M sector has a bright future, as it benefits from the large and young population, the vibrant and diverse culture, and the increasing digitalisation of the economy. The E&M sector can contribute to Nigeria’s social and economic development by creating jobs, promoting innovation, and enhancing cultural diversity.
Source: Nairametrics
