Foreign investment has played a major role in expanding Nigeria’s creative and digital industries, particularly through telecommunications, music streaming and pay television.
Since Spotify launched in Nigeria in February 2021, Nigerian music has gained greater access to international audiences. The platform reported that Nigerian artists earned more than ₦60 billion in royalties from 30.3 billion streams in 2025. The number of Nigerian artists on Spotify has also increased by 158% in five years, while independent artists and labels received nearly 58% of the earnings.
The growth has benefited not only musicians but also producers, sound engineers, managers, videographers and promoters, helping to spread income across the wider creative sector.
MultiChoice has had a similar impact through Africa Magic and its investment in Nigerian film and television production. The company helped expand the pay television market and created opportunities for writers, actors and production crews. Following its acquisition by France’s Canal+, MultiChoice committed nearly R21 billion, about $1.1 billion, to local film and television production over three years.
However, the operating environment remains difficult. Currency instability, unreliable electricity and changing regulations have made it harder for foreign media companies to sustain their investments. Netflix, which invested more than $23 million in Nigerian productions as part of a wider $175 million African content commitment, has reduced its commissioning of Nigerian originals. Amazon Prime Video has also scaled back its initial expansion.
These withdrawals show the need for Nigeria to strengthen local funding and distribution systems instead of relying entirely on international platforms. Nevertheless, the skills, infrastructure and global exposure created by such investments remain valuable to the country’s creative economy.
Telecommunications investment has provided the foundation for much of this growth. MTN’s entry into Nigeria in 2001 helped expand access to mobile communication and digital services. Its investments in 4G and 5G infrastructure have supported the connectivity needed for music streaming, digital entertainment and the growth of Nollywood.
Nigeria’s creative economy is projected to generate about $4.9 billion in revenue in 2026 and contribute ₦1.97 trillion to gross domestic product. The sector currently employs more than 4.2 million people, with millions of additional jobs expected.
Nollywood produces more than 2,500 films annually, making it the world’s second largest film industry by output. The Federal Government has also set a target of generating $100 billion from the creative economy and tourism by 2030.
President Bola Ahmed Tinubu’s administration has made attracting foreign investment a central part of its economic agenda. One major initiative is the $617 million Investment in Digital and Creative Enterprises programme, supported by the African Development Bank, the Agence Française de Développement and the Islamic Development Bank.
The programme secured $64 million in investor commitments during its first startup funding round in 2026. It also plans to establish a creative sector fund for film, fashion, music and entertainment businesses, alongside a fund of funds to support smaller investment vehicles.
Although the amount raised represents only part of the programme’s overall target, it marks progress toward converting investment promises into actual funding.
The experience of the past decade suggests that foreign investment works best as a connected process. Telecommunications companies built the infrastructure, streaming services expanded distribution, and media groups strengthened production capacity. Despite setbacks and withdrawals, each layer has helped create opportunities for the next.
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