Nigeria leads Africa’s entertainment & media growth with 8.6% CAGR
By Anietie Udoh
The Entertainment & Media (E&M) sector in Nigeria is charting a remarkable growth trajectory, with a projected compound annual growth rate (CAGR) of 8.6% through 2028. This positions Nigeria as one of the fastest-growing E&M markets globally, outperforming the global average of 3.9% CAGR and highlighting the country’s potential as a powerhouse for digital transformation in Africa.
A new report, themed Resilience and Reinvention, reveals that Nigeria’s E&M sector is set to see significant revenue growth, driven by internet advertising, over-the-top (OTT) streaming, video games, and music. Notably, internet advertising revenue in the country is expected to more than double between 2023 and 2028, solidifying its status as a key player in Africa’s digital revolution.
According to Alinah Motaung, PwC Africa’s Entertainment and Media leader, the resilience of African markets like Nigeria is a positive story of recovery and innovation post-Covid. “E&M revenue in Nigeria is projected to grow from $9 billion in 2023 to $13.6 billion in 2028, highlighting the country’s ability to expand offerings and capitalize on economic opportunities,” she said.
Digital Transformation and Localized Content: A Winning Formula
The report underscores the importance of digital transformation, as businesses leverage social media and mobile platforms to engage Africa’s growing youth population. With expanded internet access, the emphasis is on personalized, data-driven advertising and localized content production in OTT and music. These strategies aim to attract both domestic and global audiences while showcasing Africa’s rich cultural diversity.
Madikane, a key contributor to the report, noted that localization and cultural representation will play pivotal roles in attracting international players to Africa’s E&M markets. This shift, coupled with the adoption of AI tools, will enhance content production, delivery, and marketing, creating ripple effects across the global E&M industry.
Africa’s E&M Markets: Key Highlights
While Nigeria’s E&M market leads with its impressive growth rate, other African markets are also showing resilience:
South Africa, the continent’s most developed E&M market, is projected to grow at a 4.2% CAGR through 2028, driven by stable internet connectivity and 5G adoption.
Kenya, though the smallest of the three markets, is expected to achieve a 5.2% CAGR, with internet advertising and OTT emerging as significant growth drivers.
By the end of 2028, E&M revenues are expected to reach $19.8 billion in South Africa, $13.6 billion in Nigeria, and $4.8 billion in Kenya.
Nigeria’s Role in Africa’s Digital Future
Nigeria’s leadership in the E&M sector reflects the broader digital transformation taking place across Africa. As internet adoption accelerates and investment in reliable infrastructure grows, the country is poised to remain a critical player in shaping the continent’s digital future.
This growth not only underscores the resilience of African markets amid global economic instability but also highlights the immense opportunities for innovation, cultural representation, and global collaboration in Nigeria’s entertainment and media landscape.
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