The cinema of Nigeria, often referred to informally as Nollywood, consists of films produced in Nigeria; its history dates back to as early as the late 19th century and into the colonial era in the early 20th century. The history and development of the Nigerian motion picture industry is sometimes generally classified in four main eras: the Colonial era, Golden Age era, Video film era and the emerging New Nigerian cinema era.
Film as a medium first arrived in Nigeria in the late 19th century, in the form of peephole viewing of motion picture devices. 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 earliest feature film made in Nigeria is 1926's Palaver directed by Geoffrey Barkas, which was also the first to feature Nigerian actors in substantial roles. As of 1954, mobile cinema vans played to at least 3.5 million people in Nigeria, and films being produced by the Nigerian Film Unit were screened for free at the 44 available cinemas. The first film entirely copyrighted to the Nigerian Film Unit is Fincho (1957) by Sam Zebba; which is also the first Nigerian film to be shot in colour.
After Nigeria's independence from the United Kingdom in 1960, the cinema business rapidly expanded, with new cinema houses being established. As a result, Nigerian films in theatres increased in the late 1960s into the 1970s, especially productions from Western Nigeria, owing to former theatre practitioners such as Hubert Ogunde and Moses Olaiya transitioning into the big screen. In 1972, the Indigenization Decree was issued by Yakubu Gowon, which demands the transfer of ownership of about a total of 300 film theatres from their foreign owners to Nigerians, which resulted in more Nigerians playing active roles in the cinema and film. The oil boom of 1973 through 1978 also contributed immensely to the spontaneous boost of the cinema culture in Nigeria, as the increased purchasing power in Nigeria made a wide range of citizens to have disposable income to spend on cinema going and on home television sets. After several moderately-performing films, Papa Ajasco (1984) by Wale Adenuga became the first blockbuster, grossing approximately ₦61,000 (approx. ₦21,552,673 in 2015 value) in three days. A year later, Mosebolatan (1985) by Moses Olaiya went ahead to gross ₦107,000 (approx. ₦44,180,499 in 2015 value) in five days.