The debate over lifetime royalties in Nollywood is currently hitting a wall of hard math. While the sentiment points toward a more dignified future for performers, the economic architecture of Nigerian cinema remains ill-equipped to sustain such a burden. The discourse highlights the structural fragility of one of Africa’s largest film industries.
Unlike the billion-dollar corporate machinery of Hollywood, Nollywood is an industry built on the independent hustle. Most Nigerian films are not born in the boardrooms of massive studios with deep reserves; they are willed into existence by individual producers who often gamble their personal life savings on a single production. In this self-funded ecosystem, the majority of projects struggle to even recoup their initial production costs, let alone generate the surplus required to fund recurring payments for decades.
This financial reality creates a sharp divide between the vision of the artist and the ledger of the producer. Filmmakers like Bolaji Ogunmola argue that the concept of royalties cannot exist in a vacuum of risk. ‘If you want royalties, back end. Put your money in the film. Negotiate a slashed fee or nothing at all for a percentage. Let’s all enjoy the benefit of the hard labour,’ she said in a debate on X. This suggests a shift toward a model where actors trade a portion of their upfront fees for skin in the game: effectively becoming co-investors in the projects they star in.
Director Diji Aderogba questioned the focus on royalties. ‘Actors are demanding royalties from producers, knowing how hard the industry is. The same actors get to produce their own films, and now they see a clearer picture,’ he posted. He added in a follow-up: ‘Let’s focus on building a proper structure first before this noise we’re making.’
The push for a more structured compensation model is, in part, a nostalgic look backwards. In the early 1990s, the industry appeared to be on a more formal trajectory. On the set of the iconic TV series Checkmate, produced by the late Amaka Igwe, actors were earning royalties in pounds. It was a period that veteran director Mildred Okwo views as a missed opportunity, where a burgeoning professional structure was eventually eroded by a culture of desperation and ‘quick-money’ deals that saw rights signed away for immediate payouts.
Today, the lack of a safety net is felt most acutely when cameras stop rolling. Actor Etta Jo Mariah, who has experienced the industry from both sides of the lens, points to the physical toll of the craft as the primary driver for the royalty conversation. When an on-set injury occurs-such as the sciatic nerve damage she suffered last year-the actor is often left to navigate the financial burden of recovery alone. In an industry where specialised insurance is rare and union-mandated protections are still in their infancy, royalties represent more than just extra income; they are seen as a vital substitute for a missing social security system.
She acknowledged that actors put in significant work and that veterans often struggle later in life when they can no longer take on roles as easily.
The disparity in scale between Lagos and Los Angeles remains the ultimate deal-breaker for a Hollywood-style residual model. In 2025, Nigeria’s total cinema box office was valued at approximately N15.6 billion ($11.56 million). To put that in perspective, the North American market recorded $8.87 billion, while a single entity like The Walt Disney Company reported revenues exceeding $94 billion in 2025.
In Hollywood, producers or studios own the films and bear the investment risk. Actors negotiate contracts and can opt for a lower upfront fee in exchange for investing in the project to gain co-producer status and profit shares. Otherwise, they typically receive upfront payment plus residuals for later uses such as reruns or streaming, set by union formulas under Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA).
Key elements of Hollywood actor compensation include, Upfront (Initial) Payment where actors receive this for their work on set and the project’s primary release (e.g., theatrical run for a movie or initial broadcast/stream for TV), Residuals which act as additional compensation for ‘reuse’ when the project airs or streams in secondary markets (reruns, syndication, cable, DVD/home video, foreign, TV, or new media/streaming) are reuse fees rather than ownership royalties. Major stars may negotiate additional profit participation; however, the actual costs of these deals are confidential.
Residuals are sometimes mistaken for Royalties. While Residuals are service-based reuse fees which may decline over time, true royalties (ownership-based) are uncommon unless the actor has producer credits, created the project, or negotiated profit points.
Experts also say that actors can decide to divide their initial pay and invest the remaining into the film to support the producers, in which case, when the profit is shared, they become co-producers.
Nollywood functions mainly through independent producers who self-fund projects, often with personal resources or small investors. The industry lacks a large studio system, and many films fail to recover costs. Production companies are usually small, with limited corporate structures. This makes standardised lifetime royalties difficult to enforce across the industry.
The debate shows agreement that the current one-time payment system leaves many actors, especially veterans, vulnerable once work slows. Actors face risks such as injuries without long-term support, while producers face financial uncertainty.
In one 2025-2026 case, actor Godwin Nnadiekwe was hospitalised with internal injuries after an unscripted chest kick from colleague Zubby Michael during a shoot. Nnadiekwe publicly stressed the absence of insurance and immediate medical support on many productions.
Tragedies involving deaths have triggered even broader debate. The 2024 boat accident that killed actor Junior Pope and three others on a riverine set led to immediate action by the Actors Guild of Nigeria (AGN), which suspended all productions involving boat scenes indefinitely and called for better safety standards.
The Actors Guild of Nigeria (AGN) has been the most vocal. In a 2023 interview, AGN leadership discussed health insurance challenges and noted that some plans include ‘out-of-production’ coverage for on-set accidents or deaths. However, they highlighted reluctance among many actors to enroll, with minimum subscriptions required for HMO-style plans.
These insurance conversations often overlap with royalty and welfare debates. Industry observers point out that Nollywood’s self-funded, low-budget model makes comprehensive insurance rare compared to Hollywood, where union-mandated policies (e.g., SAG-AFTRA requirements for accident medical coverage and workers’ compensation) are standard.
Tight budgets and rushed schedules exacerbate the problem, with limited first aid, safety training, or on-set medical personnel. Yet forcing royalties without matching infrastructure or risk-sharing could lead to fewer projects or lower upfront fees, affecting actors who need immediate payment.
Suggestions include hybrid contracts where actors choose between full upfront pay or reduced fees plus a profit share, clearer revenue reporting, and stronger distribution deals. Some point to the need for better industry data on streaming income and possible government support to build structures.
Jo Mariah suggested handling the issue on a project-by-project basis through contract negotiations. For lower-budget projects, she described once proposing a backend deal when offered a below-par fee for a lead role. She added that if a producer cannot afford proper upfront pay, then some form of future compensation, like royalties, could act as a ‘creative pension’ for actors’ dedication and risks.
Most practitioners are optimistic that widespread royalties may become feasible in the future as Nollywood grows its revenue base, adopts clearer contracts, and develops more stable production models.