ZUFF ’18: Experts share thoughts on film financing

Day three of the ongoing Zuma Film Festival in Abuja started with the energy needed to fill a gap in the business of filmmaking.

Discussing the topic: ‘Film Business and Financing’, experts in related fields, including Mr. Hope Yongo, Technical adviser to the Managing Director of Nigerian Export-Import Bank (NEXIM); film entrepreneur, Mr. Madu Chikwendu; Mr. Kene Mkparu, President/CEO of KOMWORLD Ltd; Mallam Adbullahi Maikano, President, MOPPAN and a member Mr. Anas Yazid; filmmaker Paul Papel, and Mr. Arnold Jackson of National Export Promotion Council, Abuja among others – brought their experiences to bear, referencing the huge potentials for the creative industry, the need for auditable structures, professional business plan, and the pep needed to woo investors.

Yongo who was Keynote Speaker at the forum, spoke on Developing Fundamental Models of Film Business and Financing.

It was a cheering news to filmmakers at the forum when the banker disclosed that filmmakers will enjoy increased funding package from the Federal Government, as N27 billion has been infused into the 2019 fiscal year budget for film productions.

He noted that, although the film industry is one of the priority economic sectors identified in the Economic Recovery and Growth Plan (ERGP), and one that is projected to generate over USD 1billion in export revenue by 2020, structured film financing in the industry is sub-optimal, due to low screens per population ratio that impacts box office receipt or revenue projection, and absence of risk mitigation instrument.

Yongo stated that, as much as film producers have the options that include equity financing, loan or grant, they must be well structured for the industry to meet the USD 1 billion 2020 projection, just as the bank is redesigning its facilities and structure towards the same purpose.

On the part of NEXIM, he said the bank was considering creating exhibition platforms, by developing   the   Indian model of about 13 thousand screening centers.

Mkparu, at the forum, announced the interest of KOMWORL UK and Nigeria in Production, Distribution and Exhibition of motion picture works.

The former Managing Director of FilmOne Ltd emphasised the huge potentials of the Nigerian film industry: the biggest cinema market in the continent of Africa.

Presenting a film business ecosystem, he noted that  taxation and the legal implication are also critical to making the big screen. He encouraged budding thespians to also exude confidence in their works while approaching sponsors for support and to ensure they produce quality films that will compete favourably with their peers from other nations.

Harping on information shared by another panelist at the forum, Mkparu expressed excitement over how 6000 football viewing centers that double as film centers in Kano, can be refurbished to increase daily income.

Maikano, spoke against  the one-man show style exhibited by some filmmakers, saying there is need  to always allow professionals handle each segment of the business plan.

For Mr. Jackson, the Nigerian Export Promotion Council is in supported of call to expand the current  distribution channels to meet global standards.

His view was corroborated by Mr Anas Yazid, who gave the Kano example of using football viewing centers to screen movies which have proven to be a huge return on investments.

Papel who urged filmmakers to embrace quality was worried that some producers place emphasis on selling business plan than the content of the film.

According to him, a huge budget film should reflect quality cast and crew, saying it is not logical that the budget is huge while those working on the film are looking hungry.

“The ‘Wedding Party’ was made by four companies, that’s the way to go,” said Papel, who believes that the industry needs the right type of financial collaboration, technical collaboration, publicity and marketing to push the business aspect of creative works.