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Nigeria’s $6.4 Billion Nollywood Faces Legal Threats Without Stronger IP Protection

Nigeria’s Nollywood industry, now worth an estimated $6.4 billion, continues to shine on the global stage with blockbuster releases and partnerships with global studios. But according to Omotayo Inakoju, Head of Legal at EbonyLife Group, the industry’s rapid growth risks collapse without urgent reform to its intellectual property (IP) framework.

In a wide-ranging discussion, Inakoju—who has worked with Netflix, BBC Studios, and Sony Pictures—outlined how piracy, idea theft, and weak contract enforcement remain Nollywood’s biggest unseen enemies.

Weak IP Laws Threaten Creative Growth

Despite Nigeria’s growing creative export power, Inakoju warned that idea theft and uncredited work have become rampant. Many producers, she said, fail to secure adaptation rights or formalize ownership before production.

“Adapting a book without the author’s consent is still infringement, no matter how you change the format,” she explained. “And denying writers or crew proper credit isn’t an oversight—it’s a violation of their legal right.”

Such issues, she added, not only rob creatives of recognition but also discourage investors wary of potential legal battles.

Piracy Still Bleeding the Industry

Digital piracy remains one of Nollywood’s deepest wounds. Inakoju recounted handling a case where a client’s film appeared online without authorization.

“Imagine finding your movie streaming on a website you’ve never heard of. It’s a nightmare,” she said. “Even when the film is taken down, the financial loss and emotional toll are immense.”

Platforms like Telegram and YouTube have become hotbeds for unauthorized uploads, making enforcement difficult and compensation nearly impossible. While Nigeria’s new copyright law allows creators to request takedowns, enforcement remains painfully slow.

Contracts and Legal Literacy Remain Weak Links

Inakoju believes many of Nollywood’s legal issues stem from a lack of legal education among creatives. Few register their businesses with the Corporate Affairs Commission (CAC) or formalize ownership of their work.

“Some writers think CAC registration doesn’t apply to them,” she said. “But it’s the foundation for getting funding or recognition as a legitimate business.”

She also warned filmmakers to avoid signing vague or one-sided contracts that transfer ownership of creative rights without clarity. “Always watch for words like ‘assign’ or ‘transfer’—they can mean you’re giving away your work completely.”

Building Investor Confidence Through Legal Reform

For Nollywood to attract serious investment, Inakoju argued, Nigeria needs stronger investor protections and clearer legal structures. She recommended standardized contract templates, entertainment tribunals for faster dispute resolution, and transparent reporting for film revenues.

“Investors want assurance that their money and rights are protected,” she said. “Structured investment policies would help unlock more capital for filmmakers.”

A Call for Dedicated Entertainment Tribunals

To ensure faster justice, Inakoju proposed the creation of dedicated entertainment tribunals—specialized courts handling film, music, and creative industry cases.

“Delays in litigation kill value,” she explained. “A tribunal would make enforcement faster and cheaper, helping both creatives and investors.”

She also urged the Nigerian government to sign more international IP treaties and create a digital IP registry where creators can easily record ownership and track unauthorized use of their works.

Looking Ahead: A More Structured Nollywood

Despite the challenges, Inakoju is optimistic. She envisions a Nollywood guided by strong institutions and collective regulation rather than informal practices.

“My biggest hope is a structured industry that protects everyone’s rights,” she said. “We’ve relied on general copyright laws for too long. It’s time for film-specific legislation that recognizes the realities of production, streaming, and digital distribution.”

As Nollywood continues to define African storytelling globally, the question is not just how many films it produces—but whether Nigeria’s legal framework can keep pace with its creative ambition.

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