A Closer Look at the Nigerian Entertainment Fund

Inaccessible Fund

 king Sunny Ade Olu Jacobs

By Yemi Olakitan

      The Nigerian entertainment industry is said to be the fastest growing in the world. A UNESCO report says the movie industry has overtaken American Hollywood and closed the gap on Indian to be the global leader in the number of movies produced each year. It is said to be the third largest in the world and creates jobs for about 200,000 Nigerians in addition to over I million indirect jobs within the supportive trades and industries. However, the sector faces many challenges such as lack of infrastructure, poor funding, and piracy among others.

     In an attempt to save the industry, President Jonathan on Saturday November 6^th, 2010, directed that entertainers have access to $200 million worth of loan. The Honourable Minister of Finance at the time, Mr. Olusegun Aganga, confirmed the provision of US$200,000,000 (two hundred million dollars) Special Entertainment Fund. The Bank of Industry (BOI) was appointed the custodian of the Fund, while the Lagos Business School was to provide Entrepreneurial Capacity Training for beneficiaries. Application to access the fund opened on January 17, 2011.  Borrowing from the Fund was to attract single digit interest rate. Practitioners/applicants were to visit Bank of Industry website (http://www.boinigeria.com).  The Entertainment Fund was eventually split between the Bank of Industry (BOI) for Entertainment capital projects, and the Nigerian Export-Import Bank (NEXIM) for movie production projects. The questions are: is the fund having the desired impacts on the industry? Are Nigerian entertainment practitioners able to access it? How effective is the strategy of releasing fund to solve the myriad problems facing the industry? 

      Only recently, the Federal Government announced another fund, a N3billion special grant at a dinner, marking the 20^th years of Nollywood at the state House, Marina, Lagos. In the words of President Goodluck Jonathan, the grant was a continuation of his assistance to an industry which he said could surpass oil and gas as the nation’s highest source of revenue.  However, there are complaints in some quarters’ of the inability of entertainers to access the entertainment fund. Many who believed that the promise of the fund was a political tool in the hands of the president still on to their belief?

       “Do you know what great trouble that money has caused the industry?” asked Olurotimi Aina Kusoro, CEO, High Waves Video Marts, Wuse, Abuja. “There are some people in the industry that are superstars; the Amaka Igwes, the Zeb Ejiros, the Jide Kosokos and the Adebayo Salamis (Oga Bello). If these people have not been able to access this money, then nobody in Nigeria can access it”, he added. He said, “the money is not kept in the office of the presidency, but attached to a bank called the Bank of Industry (BoI), when you go there; they ask you for your mother’s coffin, receipt and other funny documents. How many Nigerians have lands and other such properties as collaterals?” he asked, ‘‘it is an abstract money or better still, money on paper. If the money meant for the ministry of education could be on paper, how much more money meant for the entertainment industry?” he concluded. Investigations in the Federal Capital Territory [FCT] chapter of the Actors’ Guild of Nigeria revealed that many of them are angry with the Federal Government for their inability to access the fund, ‘‘ some big actors were pursuing the money before they met a stone wall and withdrew’’, said Victor Maji, a children entertainment producer. Francis Duru, a prominent actor simply said he was not interested in the fund’’

     Star actor and former president, Actors Guild of Nigeria, AGN, Mr. Segun Arinze was full of accolades for the President, he commended him for his commitment to the development of the industry saying it is the first time the nation is having such an entertainment friendly president. ‘‘Previous presidents have not shown such interest in the industry, we have built our industry without any form of government support. You can imagine what we can achieve if the Federal Government continues to support us this way, we need them to do more,’’ he said. On why stakeholders’ complaints of their inability to access the entertainment fund, Arinze said the stringent conditions of the banks are responsible for it.  For example, we need an entertainment bank specially catering to the needs of the industry so that when one is in need of fund. You can go there; other banks consider the entertainment sector a high risk business. There is no industry without risk. In our business you cannot lose, at worst, you get your money back. We need infrastructures government should build cinemas. We don’t have enough infrastructures that can help us to maximize our potentials’’ he said.

     In the words of acclaimed Film maker, Tunde Kelani, the Federal Government is putting the cart before the bull.   ‘What they need to do is to put the infrastructure in place before they provide the fund. The infrastructure is not in place and this makes it difficult for an investor to recoup its investment. I did not bother to apply for the fund because it is a loan and not a grant. I cannot use bank loans to make films, when the infrastructure that would help me to make the money back is not in place. I have been making movies for more than five years now; I have not recouped my investments. We are suffering from the worst piracy attacks in the history of global movie making. The problem is a lack of infrastructure. Nigeria has about 15 cinemas while the United States has about 10,000 cinemas all over that nation. Nigeria, with a population of 170million people would need at least 2,000 cinemas to be able to do well in the industry. The situation is not encouraging. The federal government should build infrastructure and set mechanisms in motion to check the activities of pirates in the industry. Only a total restructuring of the sector would do, without that, it would be difficult to make it.  This is why I will not apply for that fund until the government does its part. I do not want to die before my time’’ he said.

  Most of the Stakeholders interviewed say that making loans available would not be sufficient for the industry to excel. They identified the problems of the industry as poor enforcement of copyrights or, intellectual property rights, a loose and uncoordinated market system, an undefined distribution channel, piracy, poor government support and lack of infrastructure. Iconic musician King Sunny Ade said that piracy remained the biggest problems in Nigerian entertainment. This, he said, was responsible for the disappearance of foreign record companies such as EMI and Decca from the Nigerian music scene. According to him, these record companies could not cope with high level of piracy in Nigeria and government inability to reduce it. Piracy is the reason banks do not want to invest money in entertainment and why foreign investment continues to elude Nigeria in that sector.

     Actress Joke Silva also lamented the lack of infrastructure and high level piracy activities in the industry ‘‘When Hollywood releases a movie, it goes to over 3,000 cinemas immediately. We cannot do that. Our distribution system at the moment is so informal and it is difficult for investors to take us serious.  How many cinema screens do we have? We have about 20 compared to thousands that other industries of the world have. Video as our first window of opportunity, with a distribution system that is so porous, pirates are having a filled day. Until we have a well-regulated, worldwide distribution network. We cannot grow beyond this. In a chat with Visual arts critic Tajudeen Sowole, he said, most Nigerian artistes cannot meet up with these stringent requirements since the Nigerian entertainment industry, looking at the high level of poverty among Nigerians. Nigerian artistes have continued to complain about their inability to access the fund. Many do not have the collateral. According to Sowole, only the very big players will be able to access it. Perhaps, the government should move a step forward by setting up a Nigerian Entertainment Council that would be responsible for the regulation and control of the industry so that the problems of piracy, uncoordinated distribution system could be eradicated. The present situation where piracy reigns and Nigerians entertainers cannot maximize the benefits of their creative investments will not enable them access the fund.

    However, at a session held by the World Bank held in September 2011, with some top players in the industry, CEO of Film House, Kene Mkparu, revealed how he had secured part of the $200m entertainment fund for the sector. He revealed that he had secured a facility good enough to build eight cinema houses across the country. As at July 2012, cinema specialist, Kene Mkparu, MD and Founder of Film House was set to launch the first four of the eight cinemas he received funding for from the $200 million intervention fund. The cities selected to host the first four cinemas were Surulere in Lagos, Ibadan, Asaba and Calabar (Marina Resort cinema). Film House, the first organisation to benefit from the $200 million intervention fund from the Bank of Industry, had submitted a plan to have 25 cinemas within a time frame of six years.  The four cinemas were to showcase facilities such as digital 3D, ice cream stand, cafe, luxury seating and surround sound.

     Similarly, Black Ivory Communications became the first Nigerian company to benefit from the $200 million entertainment intervention scheme managed by the Nigerian Export and Import Bank (NEXIM). Announcing the flag-off of Black Ivory's movie production, Doctor Bello, at a press conference held at Radisson Blu Hotel, MD and Chief Executive of NEXIM Bank, Mr. Roberts Orya said the partnership symbolized the flag off of NEXIM's support for movie production, with the production outfit being its first beneficiary.Doctor Bello, is a compelling story about the struggle to cure cancer and how Africa probably has found the cure to the dreaded disease. A transcontinental movie, Doctor Bello, features a handful of stars like Isaiah Washington, Jimmy Jean Louis, Genevieve Nnaji and Vivica A. Fox. The managing director of NEXIM Bank acknowledged that the movie proposal Doctor Bello qualified for the NEXIM Creative Arts and Entertainment Facility because the storyline tells a compelling story that can sell the movie globally and guarantee significant profit. The distribution of the movie was handled by the US–based Film Association of Nigeria (FAN).  Doctor Bello was directed by Nigerian-American, Tony Abulu, with some 30 years experience in movie production. He has produced and directed movies such as Back to Africa, American Dream and Crazy like a Fox.

     In a report from NEXIM bank, it claimed that seven entertainment companies have benefited from the fund and over forty formal requests and applications have been received to date. NEXIM says that no applicant has failed in their requests to obtain the loan since many of the applications are currently been reviewed and further documentations are either requested or expected. The bank maintained that applicants who meet its criteria will be able to access $100Million of the fund in its care. The bank says that its role in the intervention fund is twofold, which is funding through provision of credit facilities and assistance such as commissioned study to review the industry and develop funding instruments for the industry on Bollywood financing experience through EXIM India. According to report the bank will also sponsor capacity building proghrammes such as events, film festivals and sponsorship of Nigerian Pavilion at international film festivals. Requirements for accessing the $200m intervention fund include: collection and completion of the NCEILS Application "form obtained directly from NEXIM. The completed form should now be forwarded, supported with a copy of the project Brief and feasibility study including the Certified true copies of the following documents: Company's Incorporated Documents, Memorandum and Article of Association, forms CAC and CAC, Audited Statement/Statements of Affairs/Cash Flows, Budget(s) Bills of Quantity, Pro-forma invoice and  Completion Bond where applicable. Proprietary Rights/Syndicated rights where police-able and Collateral Security/Intellectual Property assets that are properly patented, trademarked, Copyrighted. Executed Contracts Agreements (rental/lease, Retail/Sales Agency, Cast Crew and any other document that maybe required by the bank.

     Managing Director of NEXIM Bank said: ‘‘we would finance exhibition platforms so that by the time the movies are done, it could be showing in the cinemas for months before they are made into DVDs for mass consumption.  He further explained that the Nigerian creative arts and entertainment had done creditably well in the socio-economic development of the nation. The industry had, by recent estimates, created over one million jobs directly and indirectly, and generated a minimum of $500 million in annual revenue. The industry was also widely adjudged as the most prolific in the world, producing over 2500 movies yearly in the past three years. He noted further that: With the global film entertainment market generating over $86 billion in revenues in 2010 and with revenue streams largely from box office collections, it is pertinent that Nollywood begins to adopt strategies to participate in the global market space.

Nollywood Home

Home for Thespians!

After many years of waiting, theatre practitioners in Nigeria now have a natural location to strut their stuff

 

By Yemi Olakitan

The dream of a film village seems to be the aspiration of many movie producers in Nigeria. It is said that such a village will among other things provide a conducive environment for the production of movies, documentaries and music videos. The film village, according to its promoters, would be equipped with the best infrastructure in the industry.

Currently, the common practice among Nigerian movie producers is to hire private homes of wealthy individuals to shoot movies. These, according to experts, are often not the best environment because of outside noise that interferes with productions. A film village, they averred, would provide locations, sets, lights, sound and post-production studios, as well as a standby source of electricity so that movie productions would not suffer from the incessant power failure which is a regular experience. This would soon become a a reality going by the revelations of Obafemi Lasode, a renowned radio, television, music and movie producer.

Apparently following the footsteps of the late Hubert Ogunde, acknowledged as the doyen of Nigerian theatre, the former Performing Musicians Association of Nigeria, PMAN, president has embarked on the establishment of a film village at Lekki Peninsula in Lagos. While the late Ogunde established his own village in Ososa, Ogun state, Lasode is establishing the new one at Majekodunmi Farms on the Lekki-Epe Expressway. According to Lasode, the film village, that will be located on one acre of land, is being supported by Sony, an international electronic manufacturing company; Desmond Majekodunmi, a renowned environmentalist; and other private investors.

Tagged the ‘Nigerian Film Village’, Lasode said the place will be opened to members of the public this year.  His experience during the shooting of the epic movie Sango, he revealed, led him to believe that a film village is an inescapable infrastructure for the industry. While he was shooting the Sango movie, Lasode said he built sets all over the country. ‘‘We spent more than N2million naira to build sets alone which were later abandoned since they could not be moved from place to place. We wanted to capture the past periods and locations of the story as much as possible, so we travelled to Ilorin, Badagry, Ikorodu  and other places to build our sets, all of which were abandoned after the movie was completed. On a film village, other producers could have made use of the same sets to shoot their movies,’’ he said.

Based on this experience, Lasode felt that there was a clear need for a film village where Nigerian film makers can come and do their work without stress or tension. Where sets could be set up, dismantled and reused. According to him, the greatest need of the Nigerian movie industry is infrastructure.  On the issue of noise pollution, he said that the generators are installed far away from the film location; sound studios are also being built to curb the problem of noise pollution in movie production.  Speaking further, Lasode said his company is also taking advantage of the Nigerian entertainment Fund, having applied to the Nigerian Export and Import Bank, NEXIM, to access it.

‘’We need all the support we can get on this project. We are not ruling out the Entertainment Intervention Fund,’’ he said.

‘’In other parts of the world, a film village is an entertainment and tourism centre. It is a place where movies are made. It is also a place where people can visit and be entertained. Part of the plan is to make it an historical place, a kind of Nigerian movie centre. There is also going to be a movie screen where people can watch some of the movies that are made there. However, the emphasis is to create a village where film makers can obtain the entire infrastructure that they need to make a great film.’’

Lasode said the film village needed to be in Lagos because Lagos is where the film companies are. He was convinced that a film village outside Lagos would not attract as much patronage as one that is located in Lagos, the commercial hub of Nigeria. Speaking further, he said that technology would also make the difference.  He noted that ‘‘having the latest production equipments is essential to the making of a great movie. This is why we are bringing Sony into the scene.’’

 In a chat with Desmond Majekodunmi on the importance of the project, he said, it is very important for Nigeria to showcase her talents to the world. At the moment people look at so many issues in Nigeria and call us fools. The situation of Nigeria is like someone in the midst of water and yet remains thirsty. Nigeria is in the midst of oil and gas and does not have electricity. The Film village is a way of empowering our film producers so that they can bring out the best in them so that the world will not continue look at us as fools. It is a contribution to Nigeria and coming from Femi Lasode is encouraging because of background in the industry,’’ he said

In that last 25 years, Lasode has been in the vanguard of promoting Nigerian arts and culture through music and movies. He studied Business Administration in Washington, United States, and did a Masters degree in Radio, Television and Film Production at Brooklyn College of City University in New York. Lasode was a promoter of African Music in the United States; he was a broadcaster at WNYE Radio, New York. Through his radio show Africa N’ vogue, Lasode promoted Nigerian musicians in the United states and was part of the team that brought King Sunny Ade, Oliver De Coque and Sonny Okosuns to perform at the Apollo theatre in the United states.

He founded Even Ezra studios which became a refuge for artistes for many years, as he used the place to provide support to numerous Nigerian artistes. He provided audio-visual  assistance to broadcast, film and music professionals and used his training and experience to support young Nigerian artistes.  His contributions to the Performing Arts in Nigeria prompted Nigerian musicians to elect him unopposed as PMAN president in 2002. In 2010, he was a recipient of the Hip-Pop Lifetime Achievement Awards for his contributions to the music industry. Lasode is currently on location, producing a television serial called, Paradise Park, which would run on Nigerian Television Authority, NTA network on a weekly basis. According to him, Paradise Park is a narration of the daily experiences of ordinary Nigerians as they cope with the nation’s social and economic challenges.  Lasode said his greatest wish is to see Nigerian arts and cultural products being massively exported for the whole world to see. ‘‘In order for that to happen, we need infrastructure. We also need an independent distribution agency that would be in charge of our cultural works. At the moment, the Federal Government has left it in the hands of cooks and pirates. This is not healthy, ‘’ he said.

In a chat with Nollywood film producer, Mathew Nwankwo, the producer of Dangerous Girls, Delicate Matters and other films, on the significance of a film village to the industry, he said that the film village will help film makers to produce quality movies. ‘‘Developed countries have film villages. In a film village, there will be steady supply of electricity and other infrastructure. The producer does not need to move his cast and crew from place to place; he can do everything in the village. He can organise his rehearsals there. If he needs to set his sets on fire he can do that. He is free to create whatever he wants because of the convenience and provisions of a film village. He can be more relaxed and creative. We need such private innovations to move Nollywood forward,’’ he said.    Speaking on the same issue, Arinze Egezimba, producer of Yankee Boys, Yankee Girls and CEO Mega movies, he said, ‘‘a film village will bring succour to movie producers. Femi Lasode deserves all of our support. This is something that the government should do but since they are not doing it. It is a welcome development, coming from the private sector,’’ he said.

Nigeria is an Amazing country

Nigeria is an Amazing Country- Mustafa Pulat

The new Turkish ambassador to Nigeria, Mustafa Pulat who recently presented his letters of credence to President Goodluck Jonathan in Abuja was in Lagos recently. He attended the Lagos Motor fair and Spare Parts Exhibition at the Federal Palace Hotel, Lagos. He spoke with Yemi Olakitan on Turkish business interests in Nigeria and many other issues. Excerpts:

• Question: Sir, Didn’t you have some apprehension in being posted to Nigeria, In view of the present security challenges in the country?

Every country has its own problems. Nigeria is not an exception. Turkey has problems. I am not new to Africa. I have served in Sudan and Germany but this is my first time in Nigeria as an ambassador and it is amazing. Nigeria is an interesting country, I have made a lot friends. I have met many Nigerians who are ready to partner with Turkey in businesses, manufacturing and other issues of trades. It is very interesting because Nigeria has enormous human and material resources. There is a lot of Turkish presence in Nigeria. We have 16 Turkish companies in this auto parts exhibition for example.

• What advice do you have for Nigeria on her security challenges?

Terrorism is a global phenomenon. Each country has to tackle it as best as it could. They all come down to one thing; providing adequate amenities for our citizens. The government must accede to the yearnings of the people and provide justice for all.

• What is the extent of Turkish business interest in Nigeria?

We have many business interests in Nigeria. We have established the Turkish international university in Abuja. We are working on the establishment of an Hospital in Abuja. Turkish business men are also building factories in Nigeria. I have a mandate to set up a consulate in Lagos that will take care of Turkish business interests in the southwest. The only challenge we face is the dearth of property in Lagos and that has been limiting us. We are going to establish a joint Nigeria-Turkish Commission to promote economic cooperation between the two countries

• It has been observed that there is a consular constraint in getting Nigerian business men to obtain visa to enter Turkey. How will you be able to address this problem?.

We are going to establish E-visa regime soonest so that Nigerians can apply for visa online. We have already started the programme already with few countries but Nigeria is not included yet, Now we will include Nigeria. We are not restricting Nigerians entry to Turkey.

• What is responsible for the delay in Turkish entry into the European Union?

We have almost fulfilled all the requirements. The delay seemed to be a blessing in disguise. If Turkey had been admitted during the present economic crisis rocking Europe, Turkey would been affected. We have no political issues with any European nation. The suspicion about our economic status has been removed by the delay. We are now poised to entering the EU since we have no problems with any European country..

• With Turkey as a pride to Islam. Is not limiting for Turkey to join EU since Turkey is a leading Islamic nation. One would think that Turkey will stand out and lead the developing countries?

The two scenarios are working together. Turkey will serve in both roles. We will join the European Union and we will also support the developing nations to fulfill their destinies. We are also a developing nation.

• What has become of the legacy of Bulent Ecevit?

He was a great Turkish Leader and reformer. His legacy is continuing. His party is now in power. His economic policies are still been pursued in Turkey. He gave Turkey rapid economic development. His policies attracted foreign companies into Turkey. Turkey has no car brand and we manufacture Toyota and many other brands. The people of Turkey are very demanding. If the politicians do not satisfy them. They will change the government.

Anie Macaulay and 2Face with Jim Iyke

Mercy Johnson: Beauty of Nigerian women

Celebrating Nigerian women

Genevieve!

Reasons Why Omotola is so Hot!