Onome Amuge
Nigeria’s capital market has opened a new frontier for investors with the launch of the Utica Film Fund, the first licensed venture capital vehicle dedicated to financing Nollywood, in a move stakeholders say could redefine the economics of Africa’s largest creative industry.
Unveiled in Lagos, the N20 billion closed-ended fund, developed by Utica Capital Limited and approved by the Securities and Exchange Commission (SEC), is designed to channel institutional and high-net-worth investor capital into Nigeria’s fast-growing film industry.
The initiative, market operators say, could finally give Nollywood access to structured financing at scale, reducing dependence on informal funding sources and helping the sector professionalise. With a decade-long investment horizon, the fund aims to capture value across the entire film ecosystem, from production and distribution to infrastructure and licensing.
For regulators, the Utica Film Fund represents more than a new asset class; it is a test case for how Nigeria’s capital market can be used to diversify the economy beyond oil.
John Briggs, Lagos Zonal Director at SEC, who represented the director-general, said the fund’s licensing was part of the regulator’s mandate to broaden investment products and deepen market participation. “This is an innovative structure that both strengthens the market and unlocks opportunities for Nollywood to scale sustainably,” he said.
Briggs also noted that while regulatory oversight would be stringent, SEC expected the fund to catalyse improved narratives about Nigerian society while returning value to investors.
Ellah Lakes Plc’s recent move to scale up agribusiness assets underlines how Nigerian corporates are looking to sector-specific funds to expand capacity. The Utica Film Fund reflects a similar trajectory in the cultural economy, attracting investors eager to back a sector with global reach but constrained by weak financing.
Adesegun Akin-Olubade, chairman of Utica Capital Limited, described the vehicle as an opportunity to invest in Nigeria’s cultural legacy, stressing that returns would be driven not only by creativity but also by structured deal-making.
Managing Director and CEO, Ola Belgore, said Nollywood’s scale already justified capital market interest. “This is the second-largest film industry in the world, producing more than 2,500 films a year, reaching over 35m daily viewers, and generating ₦14.5bn in export earnings in the first half of 2024 alone,” he said.
According to Belgore, the industry has showcased strong returns where adequate financing was available. “A Tribe Called Judah, produced with a N500 million budget, grossed N1.4 billion, a return of almost 180%. The Black Book, financed on a $1 million budget, secured a major global Netflix deal, reaching over 8.5 million viewers worldwide. These are proof points, not anomalies,” he said.
The Utica Film Fund will launch its first N5 billion tranche before year-end. Under SEC rules, it is open only to qualified investors, with a N10 million minimum ticket for high-net-worth individuals and ₦100m for institutions.
Funds will be deployed across Nollywood’s value chain, including streaming platforms, cinemas, and distribution infrastructure, where underinvestment has long capped the sector’s growth.
Analysts argue that the structured approach could give Nollywood more predictable revenue streams and enable better risk management. Ore Sofekun, a venture capital fund manager and former president of the Fund Managers Association of Nigeria, said: “This is a precedent. Once this fund demonstrates success, we will see more venture capital vehicles targeting the creative economy.”
For practitioners, the challenge has always been that creativity alone does not guarantee profitability. Sidney Onoriode Esiri (SID), a music artist turned filmmaker, said financing was the missing link in Nollywood’s globalisation push. “You can have the best script and actors, but without strategic funding and business discipline, you can’t compete globally. This fund gives us a fighting chance,” he said.
Nigeria’s government has repeatedly emphasised the role of creative industries in diversifying the economy and creating jobs. But despite Nollywood’s status as a cultural powerhouse, it has remained undercapitalised, relying heavily on informal investors and ad hoc partnerships.
Analysts say that institutionalising film finance through capital markets not only expands investor options but also helps formalise standards in production, distribution, and intellectual property management. This could in turn make Nollywood more attractive to international co-production deals and streaming platforms hungry for African content.
Still, the model is not without risks. Film financing is notoriously volatile, and global box office receipts remain vulnerable to shifting consumer habits and streaming disruptions. Currency volatility in Nigeria adds another layer of complexity for foreign investors considering entry.
Yet, the demographics are hard to ignore. With Africa’s population projected to double by 2050 and Nigeria home to one of the world’s youngest consumer markets, demand for local content is expected to keep rising.
For capital market stakeholders, the Utica Film Fund signals an inflection point. They noted that if successful, it could serve as a template for similar vehicles targeting music, fashion, and other segments of Nigeria’s creative economy.
“This is not just about film. It is about building investible stories, investible structures, and investible futures. Nollywood is simply the starting point,” Akin-Olubade stated.
