Contrary to recent speculation, Netflix has categorically denied plans to exit the Nigerian market, reaffirming its commitment to investing in local content. The streaming giant's statement comes in response to reports suggesting it was pulling out of Nigeria, sparked by comments from Nigerian filmmaker Kunle Afolayan.

Afolayan's remarks, made at the 2024 Zuma International Film Festival, hinted that Netflix had canceled several film projects commissioned from unnamed filmmakers. Although Afolayan did not explicitly state that Netflix was exiting the Nigerian market, his comments fueled speculation about the company's long-term strategy in the region. This speculation is not entirely unfounded, given Amazon Prime's exit from Nigeria in January 2024, just a year after a massive marketing campaign and the launch of original Nigerian productions.

In a statement to TechCabal, a Netflix spokesperson emphasized that the company is "not exiting Nigeria" and will continue to invest in Nigerian stories to delight its audience. While the spokesperson did not address Afolayan's claims about canceled projects, the statement aims to quell growing uncertainty around Netflix's position in Nigeria, where rising inflation and currency devaluation have pressured consumer spending power.

Netflix has struggled to capture a significant share of Nigeria's competitive streaming market, dominated by the more affordable Showmax, a service operated by Multichoice. With a monthly subscription fee of ₦7,000 ($4), Netflix remains a luxury for many Nigerians, particularly as inflation and naira devaluation erode purchasing power. Local players' ability to outperform in pricing could make it increasingly challenging for Netflix to maintain its position in the region.

Netflix's relationship with Nigeria dates back to 2016, when it began licensing high-profile local films. Since then, the company has invested over $23 million in Nigeria's film industry, backing over 250 locally licensed titles, co-productions, and original commissions. Notable titles include Lionheart, The Wedding Party 2, and King of Boys. In 2020, Netflix signed multi-title deals with prominent Nigerian producers like Mo Abudu's EbonyLife Productions, and in 2021, it expanded its partnership with Kunle Afolayan, signing a deal for three films, including an adaptation of Sefi Atta's Swallow.

Despite the challenges, Netflix's reaffirmed commitment to Nigeria's content market is a positive development for the local film industry. As the company continues to navigate the competitive landscape, its investment in Nigerian stories will likely have a lasting impact on the region's entertainment sector.

Additional reporting by Faith Omoniyi.