The cinema of Nigeria (Nollywood) grew quickly in the 1990s and 2000s to become the second largest film industry in the world in terms of number of annual film productions, placing it ahead of the United States and behind only the Indian film industry. According to Hala Gorani and Jeff Koinange formerly of CNN, Nigeria has a US$250 million movie industry, creating some 200 videos for the home video market every month.
Nigerian cinema is Africa's largest movie industry in terms of both value and the number of movies produced per year. Although Nigerian films have been produced since the 1960s, the rise of affordable digital filming and editing technologies has stimulated the country's video film industry. The Nigerian video feature film industry is sometimes colloquially known as Nollywood, having been derived as a play on Hollywood in the same manner as Bollywood.
Come to think about it, quality is better than quantity.It take time to produce a good movie,hollywood movies look more better than bollywood and nollywood movies.

The first Nigerian films were made by filmmakers such as Ola Balogun and Hubert Ogunde in the 1960s, but they were frustrated by the high cost of film production. However, television broadcasting in Nigeria began in the 1960s and received much government support in its early years. By the mid-1980s every state had its own broadcasting station. Law limited foreign television content so producers in Lagos began televising local popular theater productions. Many of these were circulated on video as well, and a small scale informal video movie trade developed.
The release of the box-office movie Living in Bondage in 1992 by NEK Video Links owned by Kenneth Nnebue in the eastern city of Onitsha set the stage for Nollywood as it is known today. The story goes that Kenneth Nnebue had an excess number of imported video cassettes which he then used to shoot the first film. The huge success of this film set the pace for others to produce other films or home videos. Through the business instincts and ethnic links of the Igbo and their dominance of distribution in major cities across Nigeria, home videos began to reach people across the country. Nollywood exploded into a booming industry that pushed foreign media off the shelves, an industry now marketed all over Africa and the rest of the world. The use of English rather than local languages served to expand the market and aggressive marketing using posters, trailers, and television advertising also played a role in Nollywood's success.
Since then, thousands of movies have been released. One of the first Nigerian movies to reach international renown was the 2003 release Osuofia in London, starring Nkem Owoh, the famous Nigerian comedic actor. Modern Nigerian cinema’s most prolific auteur is Chico Ejiro ("Mr. Prolific", who directed over 80 films in an 8-year period and brags that he can complete production on a movie in as little as three days. Ejiro’s brother Zeb is the best-known director of these videos outside of the country.
The first Nollywood films were produced with traditional analog video, such as Betacam SP, but today almost all Nollywood movies are produced using digital video technology. The Guardian has cited Nigeria's film industry as the third largest in the world in terms of earnings and estimated the industry to bring in US$200 million per year. In 2009, Unesco described Nollywood as being the second-biggest film industry in the world after Bollywood in terms of output and called for greater support for the industry, which is the second-largest employer in Nigeria.


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