When veteran Nollywood actress Patience Ozokwor, popularly known as Mama G, appeared on the Curiosity Made Me Ask podcast, she was asked why some Nollywood actors resort to begging online. Her response to that question, and her remarks on actors’ earnings, struck a nerve. Speaking candidly about her career, she revealed that actors in Nollywood are typically paid once for their roles, with no share in the long-term revenue their films generate.

Her comments reignited a long-standing debate: in an industry now visible on global platforms, why do most actors still not earn royalties?

At the core of the issue is Nollywood’s dominant payment structure. Unlike film industries such as Hollywood, where residual payments are standard, Nollywood largely operates on a one-off fee system. Actors are paid upfront, and that often represents the full extent of their compensation, regardless of how widely a film is distributed or how much revenue it generates.

Industry data support the scale and complexity of the problem. Nollywood produces more than 2,000 films annually, according to UNESCO, making it one of the largest film industries globally by volume. However, its revenue system remains fragmented, with earnings spread across cinemas, streaming platforms, and informal distribution channels, limiting transparency.

Why royalties are not standard for Nollywood actors

One of the biggest constraints is the absence of a centralised distribution and revenue tracking system. In more established markets, royalties are calculated from clearly recorded earnings across box office, licensing, and syndication. In Nigeria, those systems are still evolving.

Filmmaker Jade Osiberu has pointed to this gap, questioning how royalties can be sustained in a market where returns are inconsistent and not always traceable. For producers, who often finance projects independently, upfront payments remain the most practical structure in a high-risk environment.

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Streaming has not fundamentally changed this model. Platforms typically acquire films through licensing or outright purchase agreements, paying producers a lump sum. Unless contracts include backend participation, actors do not benefit from that revenue beyond their initial fees.

Production in Nollywood is shaped by financial constraints. While budgets are gradually increasing, they remain modest compared to global standards, and costs continue to rise across logistics, equipment, and talent.

Piracy remains another major barrier. Films are frequently distributed illegally shortly after release, cutting into potential earnings. This reduces the overall revenue pool and makes long-term compensation structures, such as royalties, more difficult to sustain.

Some industry voices argue that the path to royalties lies in shared risk. Actress Bolaji Ogunmola has suggested that Nollywood actors who want long-term earnings should consider investing in film projects, allowing them to earn returns as stakeholders rather than relying solely on acting fees.

Are there signs of change?

There are early signs of adjustment within the industry. Some high-budget productions are beginning to experiment with profit-sharing agreements, where actors accept lower upfront fees in exchange for a percentage of earnings. However, these arrangements are not yet widespread and are typically limited to top-tier productions.

Digital platforms are also creating alternative income models. YouTube, in particular, allows content owners to earn revenue based on views over time. For actors and producers who control distribution, this introduces a form of recurring income, although it does not function as a formal royalty system.

The debate sparked by Ozokwor’s comments highlights a deeper structural issue within Nollywood. The industry’s global reach has expanded rapidly, but its financial systems have not kept pace. Without stronger distribution frameworks, reliable revenue tracking, and more detailed contractual agreements, royalties remain difficult to implement at scale.

For now, Nollywood continues to operate on a model where actors are paid for their performance, not for the long-term value of their work. As the industry evolves, the question is no longer whether royalties should exist, but whether the systems required to support them can be built.

Cynthia Nwanonyiri