Nigeria’s Entertainment & Media sector is poised for substantial growth, projected to reach a noteworthy $12.9 billion in revenue by 2027, as indicated in a report by Pricewaterhouse Coopers.
After considering, Nigeria, South Africa and Kenya- PWC’s African Entertainment and Media Outlook 2023-2027, reported that among the three markets captured, Nigeria has the most remarkable growth trajectory, anticipating a 16.5% compound annual growth rate (CAGR) in E&M revenue through 2027.
This is expected to double Nigeria’s E&M revenue from $6 billion recorded in 2022 to $12.9 billion by 2027.
Charles Stuart, the PwC South Africa entertainment and media partner, highlighted the stabilizing growth rate of Nigeria in comparison to South Africa and Kenya
What he said
- “Nigeria is expected to experience the strongest growth in E&M revenue, with revenue expected to more than double from 2022 to 2027. While newspapers, consumer magazines and books are forecast to continue to decline in South Africa and Nigeria, Kenya is forecast to achieve growth across all segments,”
The robust growth in Nigeria’s E&M industry is attributed to significant gains in internet access revenue, particularly in the mobile sector.
The report forecasts a substantial increase in mobile internet subscribers in Nigeria, rising from 54 million to 78 million over the next five years.
Despite this expansion, penetration is anticipated to be less than a third of the population by 2027.
However, In Africa, the deployment of swift and dependable 5G networks faces challenges, with progress hindered by regulation, affordability, geography, and investment, according to reports.
While globally, 5G smartphones constituted 19.3% of connections last year, the figures were notably lower in South Africa (3.1%), Kenya (2.1%), and Nigeria (1.2%).
Despite the modest adoption of 5G, Africa remains predominantly mobile-centric, with fixed broadband penetration levels trailing the global average. Establishing robust internet connectivity in key growing economies across the continent is seen as a pivotal step for future growth.
This connectivity is expected to serve as a foundation, unlocking opportunities for consumers and advertisers in domains such as music and video streaming, gaming, and the metaverse, all contingent on swift and dependable internet access.
Globally, the Internet advertising segment is predicted to witness the most significant revenue growth, closely followed by Internet access.
However, in Nigeria’s E&M market, the only segment expected to contract marginally over the forecast period is newspapers, consumer magazines, and books.