MBO Capital deploys N9bn into Nollywood, eyes pan-African expansion to de-risk film assets

MBO Capital Management Limited (MCM), an indigenous investment and financial advisory firm, has disclosed an investment of over N9 billion in the Nigerian film industry since 2017. The milestone underscores the firm’s commitment to transforming Nollywood into a viable, institutionalized asset class.

Folajimi Alli-Balogun, Vice President of Investments at MBO Capital, revealed the figures during the second MCM Film Financing Conference in Lagos. He noted that the capital has been deployed across a portfolio of 37 films, providing critical support to a sector traditionally reliant on informal funding.

Building on its domestic success, MBO Capital is now scaling its operations across the continent. Alli-Balogun disclosed that the firm’s pipeline includes active projects in South Africa and Ghana, with further expansions planned for Rwanda and Morocco.

This cross-border strategy reflects MBO’s evolution into a sub-Saharan African powerhouse. By diversifying its geography, the firm aims to leverage its deep understanding of the film value chain to power the global expansion of African stories.

 He said investment in film has helped the firm to understand the value chain of a film.

He said Nigerian filmmakers are very talented especially seeing what is happening in the music and fashion industry, adding that Nigerian films have the same potential to travel. 

“And so we want to be one of the people that powers that expansion of our films across the world,” Alli-Balogun said.

Speaking on the importance of budgeting in fim, he said, “If you’re a financier, you want to be sure that if you invest in a film, you can make your money back. But if the budget is inflated, then that would mean you’re making it more difficult for you to get your money back as a financier. But on the other hand, the budget is important because the budget also has to go to the right things.

“Filmmakers are becoming a bit more ambitious now. If we look at what the average film is raking in at box office, the N500 million film is now more difficult for you to get your money back. So it’s important that when you’re making the budget, you need to spend the money on the right things.

“If you spend it on the wrong things, then that will tell when it’s time to recoup the investment. It is also important because investors have had this experience of investing in films with inflated budgets. And it turned a lot of people off.

“So filmmakers should ensure budgets are well-crafted and the money is spent on the right things so that more investors can think about investing in films,” he explained  

 

Kemi ‘Lala’ Akindoju, a popular Nigeria movie actor, producer and casting director echoed the need for structural reform, identifying the distribution gap as the primary hurdle to securing consistent Return on Investment (ROI).

“Financiers need clarity on how they get their money back,” Akindoju noted during the conference. “We aren’t lacking talent or content, but without a level playing field in distribution, the industry remains a difficult terrain for filmmakers.”

To bridge this gap, Akindoju advocated for the development of more screens, specifically emphasizing the role of community cinemas. By making film-going more affordable and geographically accessible, she believes the industry can move beyond its current seasonal success model.

“December is a period of high circulation, but we need that momentum to last all through the year,” she added.

The conference featured a series of high-level panel sessions designed to map Nollywood’s path toward global competitiveness. In a session featuring Saninye Alasia (ex-Genesis Deluxe Cinemas), Gbolade Okeowo (Kuramo Capital), and Michael Williams (EbonyLife Cinemas), experts analyzed how aggressive international marketing and optimized distribution models could drive higher revenues for local output.

Addressing the financial side of production, a panel titled ‘Optimising Big Budgets for Nollywood Movies’ saw producers and financiers deliberate on the necessity of disciplined resource allocation. 

The structural deficit was also a primary concern during the session “Building Infrastructure Around Nollywood.” Panelists challenged stakeholders to move beyond “quick-fix” solutions and pioneer the development of permanent production hubs and studios. 

The event drew a prestigious audience of industry stalwarts, including veterans Joke Silva and Iretiola Doyle, signaling a unified industry front.