Across Nigeria, the cinema industry is more than just entertainment—it serves as a key indicator of shifting economic patterns and consumer behaviour at the subnational level. Box office revenues, ticket pricing, and audience turnout provide valuable insights into disposable income, lifestyle preferences, and regional economic strength. As a result, industry trends have become a barometer for measuring spending power across states, highlighting economic activity, income levels, and variations in entertainment consumption.
Q: “In Nigeria, where economic inequality is pronounced, the geographical distribution of box office earnings easily highlights states with higher consumer purchasing power.”
The sector’s trend underscores Nigeria’s economic disparities, with cinemas in 21 out of 36 states generating ₦10.76 billion in box office revenue in 2024. As streaming platforms compete for audience attention, cinema trends reveal deeper narratives about purchasing power, urbanisation, and evolving consumer habits. For policymakers, investors, and businesses, analysing these patterns offers a unique perspective on regional economic realities, helping to shape targeted strategies for growth and development.
Cinema revenue as a proxy
Cinema revenue can be used to measure indirectly discretionary spending—the portion of income that consumers allocate to non-essential goods and services.
In Nigeria, where economic inequality is pronounced, the geographical distribution of box office earnings easily highlights states with higher consumer purchasing power.
Lagos remains the dominant player, accounting for ₦5.76 billion (53.6% of the national box office) and 1.17 million admissions and a lion’s share by number of cinemas in the state.
This performance is consistent with Lagos’ status as Nigeria’s economic capital, home to high-income earners, expatriates, and a thriving middle class. The city’s entertainment culture, coupled with its extensive cinema infrastructure (36 sites), ensures that moviegoing remains a key leisure activity.
Other high-performing states include Abuja (₦852 million, 7.9%), Edo (₦802 million, 7.5%), Rivers (₦801 million, 7.4%), Oyo (₦614 million, 5.7%), and Delta (₦478 million, 4.4%). These states share common economic attributes: strong urban centres, significant business activities, and growing middle-class populations. Abuja, Nigeria’s capital, benefits from a high concentration of government workers and corporate executives who can afford frequent leisure spending. Edo and Rivers, with their vibrant economies driven by commerce, oil, and tourism, also reflect relatively strong spending power.
In contrast, states with negligible box office earnings—Adamawa (₦2.4 million), Kano (₦6.9 million), and Benue (₦4.5 million)—highlight regions where economic activity does not support discretionary spending on cinema. Factors such as lower average income, fewer urban entertainment hubs, and competition from alternative leisure activities contribute to these states’ weak performance.
High-spending states vs. low-spending states
The disparity between high-earning and low-earning cinema states underscores broader economic trends in Nigeria. Here are some major markers that differentiate high- and low-spending states.
Read also: FG eases licensing rules for local cinemas
A significant urban population
Nigeria’s urban centres serve as the backbone of the country’s cinema industry. Lagos, Abuja, Rivers, and Edo stand out as major hubs where well-developed infrastructure supports the growth of cinemas. These states benefit from high population densities, improved transportation networks, and thriving commercial activities that foster a vibrant entertainment sector. With a growing number of multiplexes and cinemas equipped with modern facilities, these cities offer both the infrastructure and audience necessary to sustain a profitable film exhibition business.
Higher employment levels boost disposable income
Employment trends play a crucial role in shaping consumer spending habits. States such as Lagos, Abuja, Rivers, and Edo have high concentrations of professionals working in banking, telecommunications, oil and gas, and government services. These sectors provide stable incomes and contribute to a growing middle class with disposable income. The correlation between formal employment and entertainment expenditure is evident in the higher frequency of cinema attendance in these urban areas, where consumers are more likely to spend on leisure activities.
Lagos as a cultural and entertainment hub
Lagos has long been at the heart of Nigeria’s entertainment industry. As the birthplace of Nollywood, the city influences film production, distribution, and consumption across the country. The presence of numerous film studios, production companies, and entertainment centres has cultivated a culture that encourages cinema-going. Lagos’ status as Nigeria’s financial and cultural capital makes it an attractive market for both local and international film exhibitors seeking to tap into an audience accustomed to frequenting cinemas.
Despite the progress made in certain regions, other states continue to struggle with low cinema earnings due to various economic and infrastructural challenges.
Read also: Ebonylife Cinema becomes the highest-grossing Anglo-West African cinema in 2024
Lower household incomes limit entertainment spending
Economic disparities across Nigeria mean that not all states have populations with sufficient disposable income to support a thriving cinema industry. States with lower employment levels, especially in the formal sector, often see residents prioritising essential spending on food, housing, and transportation over entertainment. In many northern states, where agriculture and informal trade dominate, lower wages restrict leisure spending, leading to lower cinema attendance.
Limited urbanisation affecting cinema culture
The degree of urbanisation in a state directly impacts the success of cinemas. In rural and semi-urban areas, entertainment preferences tend to lean towards community gatherings, home entertainment, or free public events rather than paid movie experiences. The lack of major shopping malls and entertainment complexes in these areas further limits the expansion of cinema infrastructure, making it difficult for investors to justify establishing new sites.
Security concerns and instability hinder growth
Security remains a significant challenge in certain parts of Nigeria, particularly in 6 states such as Adamawa, Kaduna, and Benue. Persistent insecurity in these regions has deterred investments in leisure infrastructure, including cinemas. The threat of violence and instability reduces consumer movement, making residents less likely to visit entertainment centres. As a result, even in states with reasonable income levels, safety concerns can severely impact cinema earnings.
Future projections on cinema growth based on economic trends
States investing in urbanisation and commercial growth may see increased discretionary spending. While Lagos is expected to maintain its dominance, emerging cinema hubs like Rivers, Edo, Oyo, and Abuja have strong potential for further growth. Investments in commercial real estate, the expansion of shopping malls, and rising consumer spending in these areas suggest that cinema revenue will continue to increase.
However, for cinemas to expand beyond high-income urban centres, stakeholders must address the underlying economic barriers. Affordable ticket pricing, government incentives for entertainment businesses, and improved security infrastructure could encourage investments in states with untapped potential. Enhanced security in historically unstable states may lead to greater investment in entertainment.
With the rise of Netflix, Showmax, and other digital platforms, cinemas will need to innovate to retain foot traffic, as the rise of digital streaming services poses both a challenge and an opportunity. While streaming platforms offer cheaper alternatives to cinema-going, they also indicate a growing appetite for film consumption. Cinemas that adapt by offering unique in-theatre experiences—such as premium screenings, local film premieres, and event-based movie nights—can sustain and grow their customer base. Also, policies supporting Nollywood and cinema chains could foster growth in regions currently underperforming.
The Nigerian cinema industry serves as a microcosm of the nation’s economic realities. Box office performance across states is a direct reflection of disposable income levels, urbanisation, and regional economic activities. While Lagos remains the epicentre of cinema spending, emerging urban hubs like Ogun, Rivers, Edo, and Oyo suggest shifting trends in consumer behaviour. Addressing economic barriers in lower-performing states could unlock new markets, but achieving this requires a combination of investment, policy incentives, and innovative business strategies.
As Nigeria’s economy evolves, so too will its cinema landscape. Understanding the interplay between box office revenue and consumer spending power will be crucial for investors, entertainment stakeholders, and policymakers looking to shape the future of the country’s film industry.
English (US) ·