The story of Nollywood’s rise is often accompanied by the almost mythical tale of its shoestring budgets. The classic era of the 1990s and early 2000s was a masterclass in resourcefulness, with filmmakers creating cultural touchstones on budgets that would barely cover the catering on a modern Hollywood set. However, the Nollywood of 2025 is a completely different financial ecosystem. The transition to “New Nollywood,” with its cinematic releases and global streaming deals, has been driven by a dramatic escalation in investment. Today’s productions are sophisticated financial undertakings, with budgets ranging from tens of millions to hundreds of millions of Naira, and in some landmark cases, exceeding the million-dollar mark.
Understanding how this money is spent is crucial to understanding the priorities and ambitions of the modern Nigerian film industry. A film’s budget is more than just a spreadsheet; it is the financial blueprint of a creative vision. The allocation of these funds reveals what the industry values most, from the star power needed to open a film to the technical polish required to compete on a global stage. This post demystifies the process, breaking down how a typical modern Nollywood film budget is structured and allocated from script to screen.
What Are the Core Components of a Modern Nollywood Budget?
To manage the complexity of a film’s finances, producers in Nollywood, like their counterparts globally, divide the budget into two primary categories: “above-the-line” (ATL) and “below-the-line” (BTL) costs. This division separates the core creative and intellectual property costs from the practical, logistical costs of the actual production.
- Above-the-Line (ATL): These are the costs associated with the key creative talents and rights secured before principal photography begins. This category is often considered the “deal-making” part of the budget. It includes the salaries for the biggest names attached to the project, whose involvement is often essential for securing investment in the first place.
- Below-the-Line (BTL): This category encompasses all other production costs required to physically make the film. It covers everything from the camera crew and equipment rentals to location fees, set construction, and catering. Essentially, if it’s a cost related to the hands-on, day-to-day process of shooting the movie, it’s below-the-line.
How Are “Above-the-Line” Costs Prioritized?
The ATL portion of the budget, while often smaller in terms of the number of items, contains some of the most significant individual expenses. These are the strategic investments that get a film greenlit and give it its commercial appeal.
Why Is Star Power a Major Investment?
In the highly competitive landscape of New Nollywood, star power is the ultimate currency. The single largest line item in many film budgets is the salary for the “talent”—the A-list actors. Securing a bankable star like Funke Akindele, Richard Mofe-Damijo, or Tobi Bakre can be the difference between a film getting financed or languishing in development. These actors have a proven track record of drawing audiences to cinemas and driving viewership on streaming platforms. Their attachment provides a level of insurance for investors. As a result of record-breaking box office numbers and lucrative streaming deals, the fees for top-tier Nollywood actors have skyrocketed, and this is now a non-negotiable, premium investment for any major production.
What Goes into Securing the Script and Director?
Before any star can be attached, there must be a story. The ATL budget covers the cost of acquiring the screenplay (if it’s an existing work) or commissioning a writer to develop the script. Alongside the script, the director is the most critical creative voice. A director with a strong vision and a successful track record, such as Kemi Adetiba or Kunle Afolayan, now commands a significant fee. Their salary reflects their role as the artistic captain of the ship, responsible for translating the script into a compelling final product. The fees for the primary producers, who shepherd the project from concept to completion, are also included in this category.
What Does the “Below-the-Line” Budget Actually Pay For?
This is the largest and most complex part of the budget, covering the entire machinery of film production. It is where the bulk of the money is spent to ensure the film meets the high technical standards of modern cinema.
The Cost of the Crew: Who Gets Paid?
A feature film is a labor-intensive endeavor requiring a small army of skilled technicians. The quality of the crew is directly reflected in the final look and sound of the film. Major BTL salary expenses include:
- Director of Photography (DOP): The creative head of the camera and lighting departments, responsible for the film’s visual language.
- Production Designer: The artist responsible for creating the entire look of the film, including sets and props.
- Sound Designer & Mixer: The professional who captures and designs the film’s auditory experience.
- Editor: The storyteller who assembles the raw footage into a coherent and compelling narrative.
- Supporting Crew: This includes gaffers (lighting), grips (camera support), camera operators, makeup artists, and many others, all of whom are essential for a smooth and professional shoot.
How Much Do Locations and Equipment Rentals Cost?
Gone are the days of “guerrilla filmmaking” for major productions. Securing the right locations is a significant expense, involving permits, location fees, and insurance, especially for ambitious scenes in public spaces or private properties. Alongside this, the cost of equipment is substantial. New Nollywood films are shot on high-end digital cinema cameras from brands like ARRI and RED, paired with expensive cinema lenses to achieve a rich, cinematic look. The rental costs for this equipment, along with professional lighting packages, sound gear, and other technical hardware, represent a major portion of the BTL budget.
Where Does the Money Go After Filming Wraps?
A common misconception is that a film’s budget is mostly spent during the shoot. In modern Nollywood, the phases after principal photography—post-production and marketing—are critically important and command a massive share of the total funds.
Why Is Post-Production a Crucial Expense?
Post-production is where the raw ingredients captured during the shoot are transformed into a polished, finished product. Skimping on this phase can undermine the entire investment. Key post-production costs include:
- Editing: The editor’s salary and the cost of the editing suites.
- Color Grading: The process of digitally correcting and enhancing the color of the film to create a specific mood and aesthetic. This is a highly specialized skill.
- Sound Mixing & Design: Creating the final soundtrack, including dialogue, sound effects, and ambient noise.
- Visual Effects (VFX): Increasingly common in Nollywood, VFX can range from simple clean-ups to complex computer-generated imagery.
- Music: This includes the fee for a composer to create an original score and the costs of licensing any commercial songs used in the film.
How Are Marketing and Distribution Budgets Allocated?
A great film that no one knows about is a financial failure. For theatrical releases, marketing is a non-negotiable and enormous expense. A common rule of thumb in the industry is that the marketing budget (often referred to as Prints & Advertising or P&A) can be anywhere from 30% to 50% of the total production cost. This budget covers everything from creating trailers and posters to social media campaigns, influencer collaborations, press tours, and glamorous red-carpet premieres. For a film to succeed at the box office, it must become a major cultural talking point, and that requires a significant and strategic marketing investment.
A Typical Nollywood Budget Allocation (A Percentage Breakdown)
While every film is different, a typical mid-to-high budget Nollywood production in 2025 might see its budget allocated along these lines:
| Budget Category | Percentage of Total Budget | Key Expenses Included |
| Above-the-Line (ATL) | 15% – 25% | A-list Actors, Director, Writer, Producer fees, Script rights. |
| Production Costs (BTL) | 40% – 50% | The entire film crew, camera & equipment rentals, locations, set design, costumes, catering, transportation. |
| Post-Production | 10% – 15% | Editing, color grading, sound design, visual effects (VFX), original score, music licensing. |
| Marketing & Distribution | 20% – 30% | Trailers, posters, social media campaigns, PR, premieres, film festival submissions. |
Note: For major blockbuster releases, the Marketing & Distribution percentage can be even higher.
In conclusion, the allocation of a modern Nollywood budget reflects a strategic shift towards a globally competitive industry model. The significant investment in above-the-line talent guarantees commercial viability, while the massive spend on below-the-line production and post-production ensures technical excellence. Finally, the aggressive allocation for marketing and distribution confirms that making a great film is only half the battle; ensuring everyone knows about it is the other. This sophisticated financial approach is the engine driving the ambition and success of New Nollywood.