In a 2018 report made by the Federal Ministry of Industry Trade & Investment Project Costa Growth & Employment Project (GEM), Orange VFX studios have topped the charts as Nigeria’s number 1 key player in the Animation Industry with an estimated annual turnover of 18,000, and a competitive market share value of 0.72%.
The study objective was to provide the GEM project with a deep market understanding of selected value chains (VC) within Nigeria, and an appraisal of their competitiveness in relation to other global companies recognized for significant trading in these value chains.
The study methodology adopted involved all three research parameters namely desk research, qualitative interviews with industry stakeholders and a quantitative survey of selected value chain players across several states of Nigeria. Value chain players surveyed were drawn from the following sub-sectors:
The report also highlighted the countless opportunities within the Nigerian Animation Industry, some of which were:
- Utilization of Animation as an educational tool: Animation has been identified by the United Nations Children Education Fund (UNICEF) as an effective tool for education. In addition, the United Nations (UN) has recommended that at least 26% of the national budget be allocated to the education sector. The combination of these two factors provides significant growth opportunities in the local animation industry. Also with Orange VFX recently concluded Animation projects for Top tier Organizations such as The African Union “Agenda 2063” campaign videos, and EU in Nigeria “Captain Bubbles” Corona Virus Kick animation video, the reality of these opportunities are not far-fetched.
- The increased use of animation as a tool of social activism: The use of animation as a tool of social activism has grown in Nigeria, primarily as a result of the cross-generational impact of animation. Various pressure groups and activism movements in the country have utilized animation to tackle issues around Police Brutality, Malnutrition and Domestic Violence. The increased use of animation for social activism will drive the development of the domestic animation industry.
- International Film Festivals: Annual film festivals and film awards such as the Eko Film Festival and the African Movie Academy Awards, have provided a platform for domestic graphic designers to showcase their production capabilities to a larger international audience and has contributed to the recognition of local talents such as Lafem Animation. In June 2018, Basement Studio will be the first Nigerian animation company to attend the Annecy International Animation Film Festival. The Annecy festival is an international animated film festival sponsored by ASIFA (International Animation Film Association) where over 3,050 animation films will be submitted.
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- Increased demand for local talent by global terrestrial channels: Global entertainment platforms such as Netflix, Sky, Hulu and Amazon Prime have increased their demand for domestically produced content. It is expected that this demand currently geared at motion pictures will extend to animation in the long term thereby supporting industry growth.
- Rise in demand for African animation content: There are about 3,000 different cultures in Africa that are either unrepresented or misrepresented in the international film market. Global players in the animation industry are therefore exploring the untapped African animation market by seeking partnerships with Nigerian animation players.
View the full GEM Project Report here.