[9] Film as a medium first arrived in Nigeria in the late 19th century, in the form of peephole viewing of motion picture devices.

[10] These were soon replaced in the early 20th century with improved motion picture exhibition devices, with the first set of films screened at the Glover Memorial Hall in Lagos from 12 to 22 August 1903.

The film was shot amongst the Sura and Angas people of the present day Bauchi and Plateau States in Northern Nigeria, and narrates the rivalry between a British District Officer and a tin miner which leads to a war.

[12][13] Also in this era there were several films set in Nigeria, one of the most notable being 1935's Sanders of the River by Zoltán Korda, featuring Nigerian actor Orlando Martins.

Towards the late 1960s and into the 1970s Nigerian productions in movie houses increased gradually, especially productions from Western Nigeria, owing to former theatre practitioners such as Hubert Ogunde, Ola Balogun, Moses Olaiya, Jab Adu, Isola Ogunsola, Ladi Ladebo, Sanya Dosumu and Sadiq Balewa amongst others, transitioning into the big screen.

This transfer also resulted in the emergence of Nigerian playwrights, screenwriters and film producers; popular literature and theatre works were adapted into motion pictures.

[35] The increased purchasing power in Nigeria also made a wide range of citizens to have disposable income to spend on cinema-going and on home television sets.

[16] As of late 1980s, the cinema culture was beginning to face a major decline, and most Nigerian film producers had transitioned to television productions.

The gradual decline of the Golden era of Nigerian cinema has been attributed to several factors, including the reduction in the value of Naira, lack of finance and marketing support, lack of standard film studios and production equipment, frequent Government structural adjustment programmes due to military dictatorships, as well as inexperience on the part of practitioners.

The film was extensively promoted before being aired on television, and as a result, had streets flooded in the following morning with video copies of the recorded broadcast.

Since Evil Encounter, it became common, especially in Southern Nigerian cities, to see video copies of recorded television programmes traded on the streets.

[16] This method was adopted and built on by producers and distributors at Alaba Market to reinvent the film industry, since the Nigerian cinema culture was facing a major decline.

[21] The film actors also became household names across the continent, and the movies significantly influenced cultures in many African nations; from ways of dressing to speech and usage of Nigerian slangs.

[44][45] Dealing with the menace of piracy, amongst other problems, became a hard nut to crack; as a result of this, most investors of the "Alaba cartel", who control almost 90 percent stakes in the video industry, began to channel their money into other business ventures instead.

The decline of the home video era has been attributed to several factors, such as the refusal of the Government to provide support and funding, the lack of a formal and effective indigenous film distribution infrastructure and the increase in the cost of production in Nigeria.

A few years into the 21st century, Nigeria began to experience the growth of cinemas, which was initially structured for the middle and upper classes.

The Silverbird Group is the first company to launch a series of modern cinema houses across major cities in Nigeria, mostly situated in affluent areas and districts.

The Silverbird Galleria is a large shopping mall, with an upscale cinema facility and various outlets where mercantile activities take place.

The project provided ₦100 million (US$781,000) to Nigerian filmmakers to produce high quality films and to fund a multimillion Naira distribution network across the country during this period.

[50][51] Also in 2015, Bank of Industry launched another "NollyFund" program for the purpose of giving financial support in form of loans to film producers.

[52][53] The popular 2009 thriller film The Figurine is generally considered the game changer, which heightened the media attention towards the "New Nigerian Cinema" revolution.

It contributed about 1.4% to Nigeria's economy; this was attributed to the increase in the number of quality films produced and more formal distribution methods.

Other notable improvements in the New Nollywood include: more subtle performances from actors; different from the overt melodrama which constituted the video era, more practical, more logical and generally better stories.

[63][64] The animated short film "Morèmi" by Lagosian Shof Coker[65] was included in the anthology "Kizazi Moto: Generation Fire" by Disney+ in 2023.

When he is rescued by a scientist from future Nigeria, Luo connects with his lost memories and learns of the sacrifice once made to save his people.

[67] The comedy has since surpassed Wedding Party I and II, is (as of August 2023) the highest-grossing Nigerian film of all time, and has received critical acclaim.

Furthermore, over the years; due to the high cost of film production in Nigeria, Nigerian filmmakers have been forced to make films outside Lagos in order to cut costs, mirroring the exodus of filmmaking in Hollywood from Los Angeles to cities like Toronto and Albuquerque, a process known as "Runaway production".

Several other producers as a result started shooting in cities like Accra, Ghana, channeling the savings into investing in better equipment, many of them trying to get their films onto the big screen.

A survey carried out by the Newspaper showed that out of 184 films featured on Nollytuned.com, a Nigerian streaming website, between April and August 2013, Ghanaian actors played lead roles in at least 93 of them.

As a result of these collaborations, Western viewers often confuse Ghanaian movies with Nigerian films and count their sales as one; however, they are two independent industries that sometimes share the colloquial "Nollywood".