Netflix exits Nigeria after 6 years amid economic challenges under Tinubu administration

• Netflix ceases operations in Nigeria after six years due to economic challenges, including inflation and a weakened naira
• Officials cite significant subscriber losses and unfavourable exchange rates as primary reasons for the decision
• The renowned filmmaker confirmed Netflix’s exit at the 2024 Zuma Film Festival, describing it as a "big blow" to the industry

Netflix, the global streaming giant, has decided to exit the Nigerian market. The company cited the country’s deteriorating economic conditions as the primary reason. 

The development comes just six years after the platform entered Africa’s largest economy, heralded by the production of Lionheart, which introduced a new era of high-quality Nigerian cinema to a global audience.

Speaking to Peoples Gazette, sources within Netflix revealed that the decision was driven by significant losses in paying subscribers and the unfavourable exchange rate of the naira against the U.S. dollar. “We’ve lost too many paying subscribers, and the exchange rate did not help us in any way,” a Netflix official stated, adding that the official announcement would soon follow.

This marks a significant setback for Nigeria’s Nollywood industry, which had embraced Netflix as a platform to showcase its creative talent to a worldwide audience. 

Since its entry in 2018, Netflix has been instrumental in raising the profile of Nigerian filmmakers and actors, with several original productions receiving international acclaim.

However, due to economic constraints, Nigeria has become the first major market where Netflix has ceased operations. The company has also reported declining subscriptions in other markets but has remained operational elsewhere.

At the 2024 Zuma Film Festival, renowned filmmaker Kunle Afolayan confirmed that Netflix had stopped commissioning new Nigerian originals. While he secured a third season for his hit series Anikulapo, many colleagues were not as fortunate. Afolayan described the development as a “big blow” to Nollywood, noting that several projects in development were abruptly cancelled.

“It’s a wake-up call for the Nigerian movie industry,” Afolayan remarked, emphasising the need for local filmmakers and producers to explore alternative platforms and funding mechanisms to sustain the industry’s growth.

Netflix’s exit reflects the broader economic challenges under President Bola Tinubu’s administration. Inflation and a weakening naira continue to ravage Africa’s largest economy. The National Bureau of Statistics recently released inflation data highlighting the country’s worsening economic conditions, adding to the concerns of both consumers and businesses.

While Netflix’s departure signals a significant loss for the entertainment sector, it also allows Nigeria’s creative industry to reevaluate its reliance on international platforms and prioritise local solutions to global challenges.

10 companies that have exited Nigeria in the last 2 years

Meanwhile, TheRadar earlier compiled a list of 10 companies that have left the country in the last two years due to concerns about the country's economic stability. 

The companies include PZ Cussons, Equinor, Unilever, Guinness, Sanofi, P&G, Jumia Food, Bolt Food, GSK, and Kimberly-Clark.