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Covid-19: Cinema Operators Decry N22Bn Losses

by Eucharia Egwuma
July 19, 2020
in Entertainment, Headlines
Reading Time: 2 mins read
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Covid-19: Cinema Operators Decry N22Bn Losses
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Cinema operators in Lagos have appealed to the Federal Government to lift the lockdown on cinema screenings in the state, lamenting an “immenting collapse” of the sector caused by huge financial losses.

Under the aegis of the Cinema Exhibitors Association of Nigeria (CEAN), in a meeting with the state at the Lagos State Safety Commission (LSSC), the operators said that the lockdown had caused them over N22 billion Naira worth of losses, as well as over 5,000 job displacements countrywide.

However, they lauded the government’s response to the Covid-19 situation in the state, as well as its resolve in reopening the economy.

They further stated that while the government’s actions was necessary to prioritise the safety of Lagosians, it is also “expedient to consider the huge economic disaster brought upon this very important sector by the continued suspension of cinema operations and other film-based businesses” in the country at large.

The operators also revealed their strategy for post Covid-19 operations in the state.
According to the CEAN chairman, Mr. Patrick Leeds, the sector faces possible collapse, should the lockdown linger in the country’s commercial capital.

Recall that the Nigerian cinema industry, contributed over N200 billion Naira in yearly revenue, before the lockdown.

Leeds also said that “apart from providing over one million jobs per year, the industry ranks as one of the highest employers of labour in the country, second only to the agricultural sector.
“Over 250,000 workers, some of whom are directly employed by 58 taxpaying cinemas in the country have been furloughed
“Recent multi-million dollar investments, like MX4D, IMAX & 4DX theatre halls with heavy technical equipment, have been left to deteriorate; international/local creditors and investors are crying out for their money; production of films has been suspended, consequently resulting in joblessness and huge debts for Nollywood professionals. In 2019, the sector grossed over N10 billion in box office earnings alone, with estimated total revenue of ₦N35 billion.”
The CEAN emphasised that “the most rational treatment from the Federal Government should be to include cinema and allied services in all possible financial interventions.”

They lamented that since the Federal Government could reopen domestic flights, that same can be done for the cinema sector.

“A domestic flight from Lagos to Yola takes two hours, 30 minutes, which is the same running time for all movies.

“Likewise, each customer is expected to spend a minimum of three to four hours for a domestic flight which consists of arrival at airport, ticket purchase, queuing, waiting, boarding, flying and exiting the aircraft; the same hours per customer processes can be likened to cinema visitor.

“Therefore, it is only more logically justifiable to classify cinemas alongside aviation (in prioritising resumption), rather than with the hospitality sector, consisting businesses such as event centres, hotels, and bars with almost very different processes.”
The CEAN assured that the safety of Lagosians would be emphasised, following the reopening of the sector

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