The moving images have almost replaced the conventional still photographs with people opting for films of social gatherings, religious, political and marriage functions, etc. The technological advancement has brought the video close to people, which has led to the tremendous growth of videography studios centres even in small towns and villages. The project cost is NGN 925,000 and the estimated annual revenue is NGN 31,200,000.
Production Process, Capacity and Technology
The operating process involves simple steps. However, much depends upon the skill and acumen of the person handling the camera. Equipment; Video Recording Equipment is bought and put in place. Trained and specialized cameramen take the positions of manning this equipment. It is not easily quantifiable as this depends on a number of factors including the quality of the recordings being given out, the charges, etc.
Capital Investment Requirements (CBN Exchange rate – $1 to NGN 380) as of 7th of May, 2021)
|Capital Item||Qty||Price Per One NGN||Amount (NGN)||Amount (USD)|
|VHS/SVHS Video camera||1||200,000||200,000||526|
|CD burning and recording deck||1||15000||15,000||40|
1. Production costs assume 312 days per year with a daily capacity of 2 video coverage.
2. Depreciation (fixed asset write off) assumes a 4-year life of assets written off at 25% per year for all assets.
3. Direct costs include materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 workdays.
5. Currencies used are Nigerian Naira and US Dollars.
Production and Operation Costs
Direct Materials, Supplies and costs
|Unit Cost NGN||Qty/ Day||Pdn Cost/Day NGN||Pdn Cost/Mth NGN||Pdn Cost/Year NGN||Pdn Cost/Year USD|
General costs (Overheads)
|Cost Per Month NGN||Cost PerYear NGN||Cost PerYear USD|
|Selling and Distribution||30,000||360,000||947.4|
|Total Operating Costs||776,400||2,043|
Project Product Costs and Price Structure
|Item||Qty/Day||Oty/Yr||Unit Price||TR/YR NGN||Total Revenue(USD)|
|Videos, Films, Movies etc||2||624||50,000||31,200,000||82,105|
Profitability Analysis Table
|Profitability Item||Revenue Per Year NGN||Per Year
Revenue Per Year USD
|Less Prod & Operating Cost||776,400||2,043|
The use of electronic media has created a favourable climate for the filming of all programmes and events among all sections of people in society. This can be done to generate higher incomes even in rural areas. Advertising is needed for this project to quickly pick up demand.
Suppliers of Equipment
The equipment is available on the markets or some can be gotten from online stores.