The  Cinema of Nigeria,
often referred to as Nolloywood consists of films produced in Nigeria: Its  history dates back to as early as the late 19th century and into the colonial era in early 1900s. The history and development  of the Nigerian motion picture  industry is sometimes generally classified  in four main eras: the colonial era, Golden Age, Video film era and the emerging New Nigerian Cinema.
Film as a medium first arrived Nigeria in the late 19th Century, in the form of peephole viewing of motion picture devices. These  were soon replaced in early 20th century with improved motion picture exhibition devices,  with the first set of films screened at the Glover  Memorial Hall in Lagos  from 12 to 22 August 1903. The earliest feature film made in Nigeria is the 1926’s “palaver” produced by Geoffrey Barkas; the  film was also the first film ever to feature  Nigerian actors in a speaking  role.
As at 1954, mobile cinema vans played to at least  3.5 million people in Nigeria, and films being  produced  by the Nigerian film unit were screened for free at the 44 available  cinemas. The first film entirely copyrighted  to the Nigerian film  unit is “Fincho” (1957) by Sam Zebba; which is also the first Nigerian film to be shot in colour. After Nigeria’s independence in 1960, the cinema business rapidly expanded, with new cinema  houses being established.
As a result, Nigerian content in theatres increased in the late 1960s into the 1970s, especially productions from Western Nigeria, owing to former theatre practitioners such as Hubert Ogunde and Moses  Olaiya transitioning into the big screen. In 1972, the  Indigenization   Decree was issued  by Yakubu Gowon  which demands the transfer of ownership of about a total of 300 film theatres from their foreign  owners to Nigerians, which  resulted  in more Nigerians playing active roles in the cinema and film.
The oil boom of 1973 through 1978  also contributed immensely to the spontaneous boost of the cinema culture in Nigeria, as the increased  purchasing power in Nigeria made a wide range of citizens to have disposable  income to spend on cinema going and and home television sets.
After several moderate performing films, “Papa Ajasco” (1984) by Wale Adenuga became  the first blockbuster, grossing  approximately N61,000  in three days. A year later “Mosebolatan” (1985) by  Moses Olaiya also went  ahead to gross N107,000  in five  days. After the decline of the Golden  era, Nigeria film  industry experienced  a second major boom in the 1990s supposedly marked by the  release, of the direct to video  film “living in Bondage” (1992).
The industry peaked in the mid 2000s to become the second largest film industry in the world in terms of the  number of annual  film productions, placing it ahead of the  United States and behind  only India. They started dominating screens across the African Continent and by extension, the Caribbeans and the diaspora with the movies significantly  influencing cultures, bordering on theories  such as the “Nigerialisation of Africa”. Since mid-2000s, the Nigeria Cinema has undergone some restructuring to promote quality and professionalism , with  The “Figurine” (2009) widely regarded as marking  the  major turn around of contemporary Nigerian Cinema. There have  since been a resurgence  cinema  establishments,  and a steady return of the cinema culture in Nigeria. As of 2013, Nigerian cinema is rated as the third most valuable  film industry in the world  based on its worth and revenues generated.
As at  2004, at least four to five films were produced everyday in Nigeria. Nigerian  movies now already dominate television screens across the African continent  and by extension, the diaspora. The film actors also became household  names  across the continent, and the movies have significantly influenced cultures in many African  nations; from  way of dressing to speech and usage of Nigerian slangs. This was attributed to the fact that Nigerian films told “relatable” stories, which  made foreign films to “gather dusts” on the shelves of video stores even though they cost much less.
According to the Filmmakers Cooperative of Nigeria, every film in Nigeria had a potential audience  of 15 million people in Nigeria  and about  5 million outside Nigeria.
In no time, the industry became the third largest producer of films in the world. However, this didn’t  translate  to an overtly commercial film industry when compared  to other major  film hubs across the world; the  worth  of the industry was approximately at just about us $250 million, since most of the films produced  were cheaply made.
The film industry regardless became a major employer of labour in Nigeria. As at 2007, with a total number of 6,841 registered video parlours  and an estimated  of about 500,000 unregistered  ones, the estimated revenue generated by sales and rentals  of movies in Lagos State alone was estimated to be N804 million (US $ 5million) per week, which  adds up to an estimated N33.5 billion (US $209 million) revenue for Lagos State  per annum. Approximately, 700,000 discs were sold in Alaba market per day  with the total sales revenue generated by the film industry  in Nigeria estimated at N522 billion (US $ 3bilion) per annum.
Several grants have been launched by the Nigerian government  in order to support quality content in Nigerian film. In 2006, project Nollywood was launched  by the Nigerian government  in conjunction with Ecobank. The  project provided N100 million (US $781 thousand) to Nigeria film makers to produce  high quality films and to fund a multimillion naira distribution network  across the country.
In 2010, President  Goodluck Jonathan launched a N30 billion (US $200 million) “Creative and Entertainment Industry Intervention Fund,” financed by Bank of Industry (BOI) in conjunction with Nigeria Export and Import (NEXIM) bank.
In 2013, A smaller new grant of N3 billion (US $20 million) was awarded once again solely for Nollywood, and specifically for the production of high quality films and to sponsor filmmakers for formal training in film schools. Also in 2015, bank of industry launched  another  Nolly -fund programme for the purpose of giving  financial support in form of loans to film producers.
By the end of 2013, the film industry reportedly hit a record breaking revenue of N1.72 trillion (US $ 11 billion). As of 2014, the industry was worth  N853.9 billion (US $ 5.1 billion) making it the third  most valuable film industry  in the world, behind  the United  States and India. It contributed, about 1.4% to Nigeria’s economy, this was attributed  to the increase in the number of quality films produced and more  formal distribution methods.
Among the organizations and events in the industry include: Actors Guild of Nigeria (AGN) which  regulates and represents  the affairs of the actors in Nigeria and abroad, African Movie Academy Awards (AMAA). Created  in 2005,  it is considered  to be the most prestigious award in Nollywood and on The African Content, African Magic Viewers Choice Awards (AMVCA), Nollywood Movies  Award (NMA) and  Best of Nollywood Awards BON.
Additional reports from Naija.com