Unlocking Cinema for All: Nigeria's Community Cinema Initiative Explained

Gina Loko-Idoko & Ekene Chuks-Okeke

In case you missed it, on September 30, 2024, the Federal Government of Nigeria announced a licensing waiver for investors interested in establishing cottage or community cinemas. This move, led by the Ministry of Arts, Culture, Tourism and Creative Economy, aims to give Nigeria’s film industry a shot in the arm and help create more income opportunities across the sector, from filmmakers to cinema operators. 

What’s the Big Deal?

Simply put, the waiver allows investors to establish community cinemas without paying standard film screening license fees during the trial period. Typically, cinema operators must obtain two licenses from the National Film and Video Censors Board: an exhibitor’s license for the business entity and an exhibitor’s premises license for each cinema location.

Based on current licensing information, a national exhibitor's license costs N250,000 (~150 USD), with an additional N200,000 (~120 USD) required for major cinema premises (sitting more than 200 persons). While these fees might seem modest, they can be a significant barrier for smaller investors and grassroots projects. The waiver could be just the encouragement needed to test out new venues and local movie nights without that initial cost hurdle.

So, What’s a Community Cinema, Exactly?

Think of a community cinema as a local film hub. It could be a permanent theatre, a mobile pop-up, or a cooperative. The main idea is to make films more accessible, showcase local talent, and encourage community gatherings. These cinemas focus on bringing films directly to the people and often screen independent or local films that resonate with the community. However, it’s still unclear if the waiver will apply to mobile setups or if it’s restricted to fixed locations - the latter is currently required by NFVCB requirements for an exhibitor’s license.

Why Do Community Cinemas Matter?

Right now, Nigeria has only about 50 cinemas, according to a 2023 report by the Cinema Exhibitors Association of Nigeria (CEAN). So, if the goal is to bring cinema to more communities and showcase Nigerian stories to local audiences, community cinemas could be a big step in the right direction. By offering a home for local films and making cinema more accessible, they might just give Nigerian filmmakers a much-needed platform for visibility and revenue. 

Plus, community cinemas have the potential to give traditional cinemas a run for their money, especially since many mainstream cinemas prioritize Hollywood blockbusters over local productions. By focusing on homegrown films, these community cinemas could help generate more income for Nigerian creatives, providing a boost to filmmakers and actors alike. This could also expand the scope of movies that go to cinema, creating new opportunities for creators of short films, art films and documentaries, to share their films with the public.

Ultimately, the success of community cinemas will depend on establishing a fair and balanced revenue-sharing model that ensures all stakeholders can benefit equitably.

What Can We Learn from Other Countries?

In other parts of the world, community cinemas have helped fill gaps in entertainment access by focusing on local content, affordable tickets, and hosting community events. Nigeria could look to these examples for inspiration, as they demonstrate that small, localized venues can foster strong community bonds and support the local film industry at the same time. 

In India, 'The Rick Show' transforms a rickshaw (similar to Nigeria's "Keke Napep") into a mobile cinema screen. Pakistan's Cinema 73 hosts weekly screenings in a garage, exemplifying grassroots, non-profit community cinema approaches. In contrast, Ghana's Cinema 57 offers a more structured model of paid outdoor community screenings, featuring local feature films, short films, and occasional international selections. 

In Lagos, movie nights at Alliance Francaise and gatherings like Movie in the Park are examples of community cinema. More events like these can be encouraged across the country. 

What Could Get in the Way?

While community cinemas offer exciting potential, they may face significant challenges in Nigeria's current economic landscape. Nigeria’s current economic climate, marked by high inflation rates, has made it tough for many Nigerians to prioritize non-essential spending. With the costs of basics like electricity, fuel, and food going up, the question is, will people still want to spend on a cinema experience?

Community cinemas must carefully consider their positioning relative to traditional cinema chains. Strategic location will be crucial - ideally, they should target areas underserved by existing cinemas like Filmhouse or Silverbird. By operating with lower overhead costs, they might offer a distinctive alternative. However, the core question remains: Can they provide an experience compelling enough to draw audiences away from home entertainment?

Another big hurdle is competition from video-on-demand (VOD) services like Netflix, Prime Video, and YouTube. For many filmmakers, these platforms offer attractive benefits: upfront licensing fees and the promise of a broad audience, which can feel more secure than betting on box office returns. On the viewer side, with inflation pinching budgets, paying a small monthly streaming fee for access to a world of content might seem a better deal than buying single cinema tickets. A 2024 Survey conducted by In Nollywood found that 66.8% of Nigerians primarily watch Nollywood films through streaming. Plus, more filmmakers are uploading content to YouTube for free, which is tough competition for cinemas. More about YouTube in our next article - stay tuned! 

Taxing Questions

Further, while the license fee waiver is a positive step, it is not the most significant cost of operating a cinema business. What about other costs? Cost of land, equipment, electricity, and taxes and duties on imported cinematic equipment, for instance, could still be deal-breakers for investors. It remains unclear whether any tax relief or duty reductions will apply to these community cinema setups, but resolving this could make a big difference in how many investors come on board.

These questions are necessary from a financial or investment perspective - which the ministry seeks to promote. Events like Movie in the Park make a good business case for community cinema - they are well-attended events with after parties, funded by paid tickets and a host of corporate sponsors. They are themed (for example, “owambe edition”, “cars edition”) so attendees do not know the specific films they will be showing up to watch. The element of surprise plays a role in entertaining, but it hints at another factor: maybe community cinema is not so much about the films themselves, but fundamentally about giving people an opportunity to gather. 

This sentiment is echoed by founders Albert Sarpong (Cinema 57, Ghana) and Asad Kamran (Cinema 73, Pakistan), who see their community cinemas as primarily providing a reason for people to gather on a grassroots level, and talk about the art and engage on social issues. According to Albert, a recent screening sparked a mental health conversation, and “it was hard to get people to stop talking”. Both acknowledge that funding is key for sustainability and growth, especially given their plans to expand and reach more people. However, the pathway to the needed funds may lie not with traditional investors, but in alternative channels such as strategic partnerships with local corporates and international organizations, grants, crowdsourced funding, and merchandising. In pursuing partnerships, community cinemas are well positioned to help impactful organizations meet people where they are, organize activations and gather high-quality data on target issues.

Looking Ahead

The community cinema initiative is a promising step for Nigeria's film industry, signaling government support for local entertainment and film sector development. However, as earlier discussed, while the licensing waiver is positive, it may not be the most critical economic factor influencing cinema investment. We hope implementation is flexible, and not limited to brick-and-mortar cinemas. 

It is also worth noting that independent ventures have already begun operating in this space. For instance, Viewmax launched a community cinema licensing program in 2023, empowering entrepreneurs to transform communal spaces into cinemas by providing essential screening equipment.

We look forward to observing the one-year test period, which could provide insights into audience engagement, potential challenges, and competition with streaming platforms. An extended test phase might help gather more comprehensive data and inform strategic adjustments. Ultimately, we hope this initiative will fulfill its potential: support local filmmakers and provide affordable entertainment to communities throughout Nigeria - and also bring communities together and spark meaningful conversations along the way.

Thank you for reading. What do you think about this waiver? Are there any community cinemas near you? Have you thought about investing in one? How do you see community cinemas growing in Nigeria over the next year?