By Iheanyi Nwachukwu
Copyright businessday
Utica Capital Limited has launched a N20 billion closed-ended venture capital fund to accelerate investment and deepen the growth of Nigeria film industry.
According to the company, the venture capital registered and approved by the Securities and Exchange Commission (SEC) of Nigeria aims to reduce the N200billion funding gap in Nigeria’s film industry.
Adesegun Akin-Olugbade, chairman, Board of Directors, Utica Capital while speaking at the launch of the initial N5 billion tranche of Series 1 of the Utica Film Fund said the fund was released to boost the competitiveness of the country’s film industry at the global level.
“Nollywood is more than entertainment. It is a cultural powerhouse, a billion-dollar industry, and one of Nigeria’s greatest exports to the world. Every day, over 35 million people consume Nollywood content. Our films travel across borders, shape perceptions of Africa, and provide livelihoods for millions. Yet, for too long, this industry has been underfunded, relying on personal savings, informal loans, and small-scale investors,” Akin-Olugbade said.
According to him, despite global ranking and audience, the country’s film industry has suffered underfunding, insisting that the newly launched fund will open doors for investors to invest in the film industry.
“We are not just launching another investment product; we are making history. For the very first time in Nigeria, and indeed in Africa, the Securities and Exchange Commission has approved a specialised Venture Capital Fund dedicated to the film industry. The Utica Film Fund is, therefore, a pioneer, blazing the trail where finance and creativity intersect.
“With a structured, SEC-approved, professionally managed vehicle, we are creating a channel for institutional and high-net-worth investors to participate in the growth of Nollywood and to earn competitive, risk-adjusted returns while doing so. This is not charity; this is smart investing, backed by rigorous due diligence, strong governance, and a diversified portfolio strategy,” he said.
The chairman urged investors to leverage the funding not just for profit but also for cultural preservation and growth of the Nigeria film industry.
“We invite pension funds, insurance companies, asset managers, and private investors to seize this unique opportunity. By investing in the Utica Film Fund, you are not only securing attractive financial returns, you are also investing in Nigeria’s cultural legacy, job creation, and global reputation. This is the beginning of a new chapter. A chapter where Nollywood is no longer underfunded, but rather, globally empowered,” he added.
Ola Belgore, Managing Director of Utica Capital lament the absence of institutional capital in the industry despite proof of strong return, insisting that the firm through the U-film investment is here to bridge the gap.
He said, “Nollywood is not just an industry. It is a vital force, the second-largest film industry in the world, producing more than 2,500 films each year, reaching over 35 million viewers daily, and generating over N14.5 billion in export earnings in the first half of 2024 alone.
“Yet, for all its scale and influence, Nollywood remains deeply underfunded. More than 95 percent of its financing still comes from personal savings and informal loans. Institutional capital is almost absent, despite clear and consistent proof of strong returns. That is the gap we are here to close.”
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He said the 10-year investment is structured to invest in high-growth opportunities across the entire film value chain including production, distribution, streaming, infrastructure, and licensing.
According to Belgore, possible return on investment through the fund stands at a net internal rate of return of 58.2 percent over the life of the fund, with an average gross IRR of 89.4 percent.
He said, “U-Film offers attractive returns. The projected multiple returns on invested capital stand at approximately 4.5 times over the life of the fund. Importantly, Utica Capital will invest alongside our partners, ensuring our interests remain fully aligned with yours.”
The MD added that the fund goes beyond financial performance, expanding to other areas like job creation with thousands benefitting directly and indirectly, across the creative and production value chains while increasing foreign exchange inflows through strategic partnerships with global streaming platforms.
“Most of all, it is about national pride; telling Nigerian stories with Nigerian voices, and sharing our culture with the world,” he added
Belgore call on investors to queue on not only for investment return but also the growth of Nigeria’s film industry
“The Utica Film Fund is now officially open for subscription, but only to qualified investors under Nigerian SEC regulations. The minimum investment is set at ₦10 million for high-net-worth individuals and ₦100 million for institutional investors. Investors can choose to subscribe in either Naira or U.S. Dollars.”
The initiative, according to the firm also aligns with the Federal Government’s agenda to diversify the economy, strengthen the non-oil sector, and establish Nigeria as a cultural and creative hub on the global stage.
