In recent years, one of the most persistent issues within the Nollywood industry has been the challenge of distribution. Historically, Nigerian films were largely confined to local marketers, who often struggled against the rampant issue of piracy. However, the landscape began to shift dramatically with the advent of digital media platforms such as YouTube, Amazon Prime, Netflix, Facebook, Instagram, and TikTok. These platforms have opened up a myriad of distribution channels for Nollywood films, enabling creators to reach global audiences and break free from the limitations of traditional distribution.
Among these advancements, YouTube has emerged as a particularly influential force. According to the Nigerian Creator Economic Report 2025, a staggering 15,105 Nigerian creator profiles boast over 1,000 subscribers on YouTube. Upon closer examination, the data reveal that only 32.6% (approximately 4,930) of these creators maintain a Nigerian audience that accounts for at least 20% of their viewership. These evolving realities in distribution have sparked crucial conversations regarding the renewal of compensation structures, particularly about royalties.
Veteran Actors Speak Out
Recently, during an episode of the show “Curiosity Made Ask,” veteran actress Patience Ozokwor shed light on the common practice within Nollywood where actors receive a singular payment for their roles in films. Once the filming is complete, these actors do not receive any additional financial compensation, irrespective of how often the movie is resold, re-aired, or streamed on different platforms. This stark contrast with other film industries, such as Hollywood, highlights a system where actors can continue to earn royalties from their past projects, affording them long-term financial security and stability for their families.
Ozokwor poignantly articulated the struggles faced by veteran actors, noting that their reliance on one-time payments often forces them to “beg” for financial assistance in their later years. She emphasized the hard work and dedication that goes into their craft, yet lamented that producers often provide them with only “peanuts” for their efforts. The emergence of digital platforms like YouTube has begun to alter this landscape, granting actors greater control over their own content and allowing them the opportunity to monetize it more effectively. Consequently, many actors are pivoting towards these platforms in search of better financial outcomes.
Industry Perspectives on Royalties
The statements from Ozokwor have ignited discussions surrounding the necessity of establishing contracts that extend beyond mere one-off payments to include provisions for royalties. While there is a growing consensus regarding the need for such reforms, others argue that the Nollywood industry currently lacks the structural framework seen in established industries like Hollywood, where the practice of paying royalties is commonplace. Critics note that executive producers typically occupy the highest positions within the risk-taking hierarchy, implying that royalties would be seen as secondary to the profit margins anticipated by their investors.
As Nollywood grapples with the dual challenges of adapting to a digital-first distribution model and rethinking its compensation practices, the movement towards a structure that includes lifetime royalties could redefine the financial landscape for actors, ensuring they receive fair remuneration for their contributions long after the credits have rolled.
Calls for Structural Reform
In addressing the issue, cinematographer and director Twamsan Danaan emphasized the need for a more structured framework within Nollywood to facilitate quicker funding for films. He noted that establishing such a system could lead to increased revenue, allowing for fairer royalties for actors. While deals with streaming platforms like Netflix are a step in the right direction, they currently lack the substantial impact needed to transform the industry. He raised important concerns about the professionalism of actors who take on various projects while replicating performances across different works. This behavior raises questions about the fairness of earning royalties in a system perceived as unprofessional. Twamsan expressed that if Nollywood actors aspire to collect royalties in the current unstructured landscape, they should proactively invest in the overall development of their projects.
Producer and Creative Director of Twenty Pounds Entertainment, Ogochukwu Umeadi, highlighted the uncertainty surrounding the future of contracts, whether they will evolve towards royalties or continue to rely on one-off payments. He noted that human behavior, alongside industry dynamics, often leans towards what best addresses immediate or long-term interests, contingent on individual circumstances. He acknowledged the prevailing challenges in Nigeria’s distribution systems, which are not yet fully optimized. While streaming has enhanced access, issues related to transparency, reporting, and revenue structures are still in transition.
Ogochukwu pointed out the difficulty of fully trusting a royalty-based framework when Nigeria’s distribution avenues are not as streamlined as those in Hollywood. In a system where distribution channels are uncertain, it’s understandable for practitioners to prefer immediate, guaranteed compensation over uncertain long-term earnings. He suggested that the future of contracts will likely represent a blend of various models rather than a straightforward transition from one to another. This will create a negotiation space that is complex and evolving, where buyouts and royalties can coexist. Each deal will reflect not only the project’s financial elements but also the personal dynamics of those involved in the agreement.
Growing Awareness Among Talent
The positive shift occurring, he noted, is an increasing awareness among cast and crew members about royalties, backend participation, and residuals not as abstract concepts, but as tangible negotiable terms. This realization is significant. While it may not lead everyone to opt for royalties immediately, it encourages more individuals to contemplate the implications of what happens after the initial payment. If a broader shift takes place, it will likely be generational. Younger filmmakers, casts, and crew members may be more inclined to explore hybrid models that involve smaller upfront payments in exchange for backend participation. This approach stems not only from an idealistic viewpoint but also from a willingness to embrace calculated risks that their established counterparts may not be able to consider.
A Personal Story of Underpayment
Sharing her own journey, filmmaker and cultural technologist Marian Akwajie Ayim recounted her experience of starring in a Nollywood film back in 2009, which eventually gained popularity and found its way to three streaming platforms, yet she received a flat fee of ₦80,000 with no additional payments. This scenario highlights a broader issue within Nollywood regarding how talent has historically been compensated. As films thrive and gain international attention, the actors often find themselves left behind, receiving little acknowledgment or financial benefit.
Marian emphasized that many contracts, even when they exist, often lack essential elements such as residual clauses or digital licensing provisions. While the Actors Guild of Nigeria is present, its capacity for enforcement may not be consistent. There appears to be a need for a more robust organizational framework with real economic influence. She pointed out that although platforms like Netflix, Prime Video, and ShowMax have aggressively sought out Nigerian content, discussions around royalties have not kept pace with the financial transactions occurring in the industry.
Lessons from Other Film Industries
Marian proposed that Nigeria could benefit from observing the experiences of the Indian and Brazilian film industries. She noted that despite Brazil’s challenges, including severe inequality and economic instability, their film industry has undergone significant reforms. Brazilian filmmakers and actors historically faced exploitation but initiated change through legislative efforts, specifically through a bill aimed at granting performers rights to remuneration for the use of their work. This transformative journey resonates deeply with those familiar with the struggles of veteran Nollywood actors, many of whom diligently worked throughout their careers yet find themselves facing financial difficulties due to the ongoing circulation of their films without fair compensation.
“Nollywood is at a turning point right now, whether the industry admits it or not. The streaming money and global attention is real, infrastructure to monetize Nigerian storytelling at scale exists today in a way it never did before. The only question remaining is who that money flows to, and whether the people who built this industry with their sweat, their craft, and their talent will finally be carried along,” she concluded.
