Nigeria Tops Africa’s Entertainment and Media Growth with 8.6% CAGR
Nigeria is poised to dominate Africa’s Entertainment and Media (E&M) sector, with a projected compound annual growth rate (CAGR) of 8.6% through 2028. This impressive growth places Nigeria ahead of the global average of 3.9% and solidifies its position as a key player in Africa’s digital revolution.
A new report titled Resilience and Reinvention highlights that Nigeria’s E&M sector is on track for significant revenue growth. The growth will be driven by areas such as internet advertising, over-the-top (OTT) streaming, video games, and music. One of the most notable trends is the anticipated surge in internet advertising revenue, which is expected to more than double between 2023 and 2028, emphasizing the country’s increasing influence in the digital space.
Alinah Motaung, PwC Africa’s Entertainment and Media leader, commented on the growth, stating that Nigeria’s ability to recover and innovate post-Covid is a testament to the country’s resilience. E&M revenue in Nigeria is projected to rise from $9 billion in 2023 to $13.6 billion by 2028, underlining the country’s growing influence and capacity to drive economic opportunities in the sector.
The report highlights the importance of digital transformation in the sector, especially as Nigeria’s businesses harness the potential of social media and mobile platforms to reach Africa’s expanding youth population. The growth of internet access has fueled personalized, data-driven advertising strategies and a focus on localized content production. The rise of OTT streaming platforms and the booming music scene reflect Nigeria’s emphasis on both global appeal and the celebration of African culture.
Madikane, another key contributor to the report, noted the importance of localized content, stressing that cultural representation will be crucial in attracting international players to Africa’s E&M markets. With the integration of AI tools, the report predicts a transformative impact on content production, delivery, and marketing in the global E&M industry.
Nigeria’s exceptional growth is part of a wider trend across Africa’s E&M markets, although other countries are experiencing their own positive trajectories. South Africa, as the continent’s most developed E&M market, is projected to grow at a 4.2% CAGR through 2028, bolstered by stable internet access and the adoption of 5G. Kenya, though smaller, is expected to experience a 5.2% CAGR, with internet advertising and OTT platforms driving growth.
By 2028, E&M revenues in South Africa are expected to hit $19.8 billion, Nigeria will reach $13.6 billion, and Kenya is set to generate $4.8 billion.
Nigeria’s leadership in the E&M sector is a crucial part of Africa’s broader digital transformation. With increasing internet adoption and improved infrastructure, Nigeria is well-positioned to remain a critical player in shaping the continent’s digital future. This growth not only reflects the resilience of African markets but also opens up vast opportunities for innovation, global collaboration, and cultural representation in Nigeria’s entertainment and media industry.