THE DISCUSSION

​

AWAKENING THE GIANT IN THE NIGERIAN FILM INDUSTRY

BY SHOWCASING THE NUMBERS THROUGH PROPER RECORD KEEPING

AS A FOUNDATION FOR LOCAL AND GLOBAL FILM BUSINESS SUCCESS

02

03

01

Nigerian International Film & TV Summit, Lagos 2022

Nollywood, Arise and Shine

Presenter:

Yekini Iskilu, FCA

• The Nigerian Film Industry, Nollywood is widely reported as the second largest film sector in the world after Bollywood and Nigeria’s second largest employer of labour after Agriculture with about one million men at work!
• The prominent industry has huge revenue earning potential including FOREX

The Nigerian Motion Pictures Industry today

Nigerian International Film & TV Summit, Lagos 2022

• The issue is that the Nigeria Film industry growth has been dwarfed due to the perennial industry challenges-High rate of piracy, Poor funding, low film quality, poor distribution, poor remuneration and retirement plan, inadequate government support and incentives among others.
• The good news is that when the consolidated numbers in the industry are rightly showcased with the aid of proper record keeping, the above perennial challenges inimical to the business success of industry players will be declared as an emergency and Nollywood would rule the world and move up from number 2 .

​

The way forward

Nollywood’s widely reported Milestone

• Top 3 challenges

​

• 1^st-
• Piracy

​

• 2^ND- Government Support

​

• 3^rd-
• Good Governance

​

EXTRACT FROM OF A RECENT PRIVATE SURVEY CARRIED OUT ON KEY CHALLENGES FACING NIGERIAN FILM INDUSTRY

Is it not time for the Nigerian Film-industry to take charge as the author of its own data by maintaining relevant books of account to validate the publicized

Nollywood Milestone???

Data: FIRS, PLANNING, RESEARCH & STATISTICS DEPT

Data: Ministry of Finance, Budget and National Planning

History, cultural Heritage & Tourism

Family, Home & Nation building

Provider of FOREX

Big provider of direct and indirect jobs labour

Education and Entertainment

Good citizenship, Unity & Morals

WHO IS TRACKING THE INTRINSIC VALUE OF NOLLYWOOD?

NIGERIAN FILM INDUSTRY CAN BE GREATER THAN REPORTED

IF…

• We can showcase
• Our
• 9 8 7 6 5 4 3 2 1 0’s
• With proper record-Keeping

3 STEPS TO PROPER BUSINESS RECORD-KEEPING

• Keep Source documents
• Invoices, contracts, bills, vouchers, bank statements, e.t.c.

​

• Data extraction & Analysis
• Sorting and arrangement of data to produce information

​

• Preparation and Presentation of Management reports and audited Financial Statements
• Periodically

• Financial Performance Measures revenue, cost, and residual Profit/ (loss). Profit=Revenue-expenses using income statement
• Financial Position reveals:
• Resources, debts, Accumulated profits/(loss) and Capital through the Balance sheet.
• Cash flow tracks liquidity which is the lifeblood of business.
• Cash inflows less Cash Outflows using statement of cash flow

Business Records Tracking(BRT)

FINANCIAL POSITION

FINANCIAL PERFORMANCE

CASH FLOW

• Business Dashboard
• Cashflow view

​

• Productivity Performance view

​

• Tax Effect view

​

• Financial stability view

​

Critical Signals enabled by records

BALANCE SHEET’ ARMOURY DASHBOARD

Content, Camera,

shoot equipment,

Vehicles,

Generator,

Cash, banks,

Investments,

​

Positive/(negative)

Business outcomes

Owners’ start-up capital

Loans, taxes,

payables, bills

​

​

​

Property, receivables, inventories

• Government, Industry regulators, Tax authorities, Media, National Bureau of statistics(NBS)
• Business owners, potential investors
• Lenders, producers, Cinemas, distributors, Vendors, customers, technical partners, exhibitors
• Management, personnel

Users of information in Film Business Financial Statements and records

1

2

3

4

• Large
• Medium-sized company 1/3 Tax Waiver
• Small company
• Fully Tax exempt

Above N25MN but less than N100MN

N25MNor less

N100MN& Above

Tax Incentive for record keeping

Tax Incentive Region

Annual Turnover (Revenue)

• Successful strategic Film business planning & risk management

​

• Greater Investors’ confidence

​

• Right pricing of creative works

​

• Film Free Trade Zone

​

• Nollywood Legislative bill

​

• Better access to Funding

​

• Massive Public support

​

• Adequate retirement plan & Insurance

​

• Greater government attention and support

Potential outcome of shooting out Nigeria’s Film industry numbers with good record keeping

Most of the Home Films verified and approved by NCFVB between February 2022-June 2022 were produced by individuals while corporate producers on the lists were too low.

Nigerian Film Producers

CONCLUSION

• Clearly, empirical evidence backed with data shows that the Nigerian Film Industry achieved its milestone with practitioners efforts and it is not impossible for Nollywood to rule the world if all hands are on deck especially government support.
• Proper record keeping would enable the right numbers to be chunked out by the industry players which would enable the industry

to receive the needed support for greater business success.

RECOMMENDATIONS

• Since film producers are very strategic to the growth and success of Film business in Nigeria, it is important that registration of production business as a corporate entity will give better structure to the business which would enhance proper record keeping for greater business success.
• The Nigerian Film Corporation(NFC) which was established over 40 years ago by the Federal Government to see to the development of a viable and sustainable film industry and cinema culture in Nigeria still has 100% government ownership. The private sector should be part owners as this will enable rapid development of Film Industry in Nigeria. This may require an amendment of the relevant laws establishing the corporation.

​

Thank you

• QUESTIONS?

YEKINI ISKILU OJO, FCA