4 Reasons Why You Should Join The Entertainment Business In Nigeria
Nollywood is officially big business in Nigeria.
With movies like "Wedding Party" and "30 Days in Atlanta" crossing the 100 million mark in the box office, the Nigerian movie industry has definitely come a long way since the days of "Living in Bondage".
While there is hardly any shortage of material, distribution however remains a major challenge for movie makers in Nigeria.
Nigeria presently has only 30 cinemas across the country, but with a population of more than 187 million people, the number doesn't even begin to cut it.
But that's about to change as the Bank of Industry is currently pumping funds into the entertainment industry which seeks to tackle issues like distribution.
That said, here are 4 reasons why you should consider starting a cinema business in Nigeria.
1. 1. There Is Funding
Funding is usually the challenge with starting a new business, but rest easy, the Bank of Industry is stepping up to the plate of empowering Nigerians who seek to play in the entertainment space.
Th BOI has been one of the main sponsors of cinemas in Nigeria; the bank financed the birth of Filmhouse cinemas which has grown over the years to compete favorably with other established cinemas.
According to Uche Nwuka, BOI's head of the creative industry group, who was a panelist at the "Financing The Creative Industry", there is funding available for the creative industry, at an interest rate of 10%, while hoping that the government gives BOI a pool of fund to manage at a single digit interest rate.
2. 2. Many of the businesses paid off before maturity date
SA Are you worried about the ability to pay back your loan? Not to worry, the bank assures that it has a history of people paying back their loans in time.
Nwuka confirmed that many of the creative businesses sponsored by the BOI paid back before their investment tenure matured.
“I had to tell someone who wanted to pay back the money he loaned to wait, after I had received like 5 people who were returning their loans before the maturity date” she said.
3. 3. BOI uses Filmhouse cinema staff as part of its advisory team
As part of its advisory team to give out loans to deserving people, BOI uses one of its past borrower’s - Filmhouse Cinema to arrive at a decision. This is to safeguard everyone's interest. So not to worry, you're in good hands.
4. You don't need a collateral.
One of the biggest deterrents with taking loans for many people is the unavailability of collateral. BOI has however eliminated that hurdle for budding investors in the creative space.
To accesses the Nollyfund product under BOI, the borrower does not need collateral, but will have to sign up to use one of the 4 production studios that were financed by the bank, and according to Uche Nwuka, the studios have the ability to achieve a fine production, whose quality can be shown in a cinema.