The Hollywood film industry in the United States may be the most influential around the world, but in terms of output and economic relevance it was surpassed by Hindi films (Bollywood) years ago, and now it is falling behind the prolific work of filmmakers in Nigeria.

Nollywood, as Nigeria’s booming movie machine is endearingly known, is developing at a dizzying pace. The ethos of Nigerian filmmakers is radically different from that of their counterparts in Hollywood and Mumbai. While producers and directors of films released by Hollywood and Bollywood labels are always trying to outdo each other with bigger budgets, more spectacular special effects and higher compensation for their acting stars, filmmakers in Nigeria are more interested in making movie magic on shoestring budgets.

According to an investigative report published by Al Jazeera, the Nigerian movie industry churned more than 2,000 films last year. The industry is estimated to have produced about $250 million each year since 2004. It is the fastest-growing sector of the Nigerian economy, and the second largest employer in the African nation.

A Streamlined Model of Production and Distribution

How does Nollywood manage to release 50 new films per week? It is a matter related to economies of scale. Production costs are slashed down to figures that would make the American director of the Spy Kids, Sin City and Desperado franchises proud.

Robert Rodriguez got the attention of Hollywood in the early 1990s when he traveled to Mexico and filmed El Mariachi for $7,000. He wrote a memoir about his experience filming El Mariachi on the cheap, “Rebel Without a Crew.” In his book, Rodriguez comes away as a champion of low-budget productions. He favors digital cinematography, minimal film crews, and home-made special effects.

Nigerian filmmakers seem to follow the advice of Robert Rodriguez in each of their movies. The budgets are very low, starting around $10,000. A $200,000 budget is reserved for epic productions.

By way of comparison, the Hernan Jimenez film “El Regreso” had a budget of around $100,000, which required crowd-funding and the support of the film industry in Costa Rica.

There are no big movie studios in Nigeria; its producers and directors are fiercely independent. Shooting on 35mm film is unheard of, and all releases are straight-to-DVD titles that are rented or sold for as little as a couple of dollars.

Movie audiences in Nigeria prefer the comfort of their own homes, lounges and community centers when it comes to watching newly released films. About one hundred distributors keep thousands of DVD rental stores across Nigeria busy with new releases each week. There is a downside to these progressive methods of production and distribution: piracy, which is rampant in Nollywood.

Nigeria’s film industry is very informal, with little regulation and no government intervention. Audiences enjoy the sheer variety of films available, the local actors and the modern social themes. For example, the comedy BlackBerry Babes deals with topics of greed, materialism and the absurd obsession over smartphones in Nigeria. BlackBerry Babes was a hit film in 2011.