Nigeria’s music industry is a global powerhouse. Afrobeats drives billions of streams worldwide, with artists like Burna Boy, Wizkid, Rema, and Davido selling out international arenas and collaborating with global stars. Yet beneath the surface of this global success lies a fragmented local industry, which stifles investments and limits revenue potential.
Nigeria’s dominance on global playlists is incontrovertible, but inconsistent data, weak rights management, and limited industry education are denting the industry, leading to significant revenue losses for artists and labels.
Millions go unclaimed, leaving stakeholders with little to show for the global attention Afrobeats commands.
Fragmentation and effect
Nigeria’s music ecosystem is a patchwork of small, independent labels and self-managed artists. There is no unified system for rights management, royalty distribution, or talent development. This lack of structure creates uneven quality, poor artist support, and limited access to crucial resources like studios and training.
“There is no standardised structure around rights management, royalty distribution, licensing, or even artist development,” said Munya Chanetsa, a music executive. “Everyone is operating in their silo. There is little infrastructure to support long-term artist growth, unlike in more developed markets or even with structured labels like Empire or Mavin.”
As a result, emerging artists often miss out on royalties due to unregistered rights. Many lack legal or managerial representation, making them vulnerable to exploitation or obscurity. Small labels, too, face challenges in securing distribution, limiting their ability to scale.
“Many talented acts are left vulnerable, either overexposed without proper contracts or underexposed due to lack of strategy,” Chanetsa added.
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Investment stalls amid uncertainty
This fragmented environment discourages investors. With poor transparency, unreliable data and unenforceable contracts, profitability becomes a gamble.
Akachi Igboko, a Nigerian music executive, said: “The global music industry views Nigeria as a place with a lot of potential. Additionally, our growing population and the relatively lower cost of labour have also piqued the interest of international investors.
“However, this is often short-lived as certain challenges, including the current socio-economic realities, low purchasing power of the people, and infrastructural challenges, among others, have led some of these investors to minimise and, in extreme cases, cease their operations in Nigeria.”
A major concern is the dysfunction of Nigeria’s Collective Management Organisations (CMOs), which are embroiled in ongoing disputes.
“Due to their inactivity, Nigeria loses potentially millions of dollars annually in unrealised publishing royalties,” Igboko said. “This deters publishing companies from setting up operations locally.”
Michael Odiong, chairman of the Music Publishers Association of Nigeria, echoed this concern. “Nigeria is not earning from music publishing, yet we are Africa’s biggest music exporters,” he said.
According to the IFPI’s 2024 report, Sub-Saharan Africa earned over $100 million in music revenue, yet South Africa accounted for 75 percent of that, leaving Nigeria and other countries with just 25 percent. “The Nigerian market is culturally rich and sonically influential, but administratively risky,” said Chanetsa.
Structured models show the way
Some players have charted a different course. Mavin Global, founded by Don Jazzy and led by Tega Oghenejobo, has built a robust artist development system focused on production, branding, and performance. In 2019, Mavin attracted major investment from Kupanda Holdings. That success led to a 2024 acquisition of majority stakes by Universal Music Group (UMG).
“UMG trusts in the legacy we have built, and we trust them to amplify our artists globally,” said Oghenejobo. This structure has propelled talents like Rema and Ayra Starr to global recognition.
Other structured players include Chocolate City, which takes a 360-degree approach encompassing music, events, and partnerships.
The label has worked with the Nigerian government to revitalise creative infrastructure. Meanwhile, Empire’s distribution and marketing expertise helped Fireboy DML break onto the international scene.
Barriers, long-term fixes
The impacts of fragmentation go beyond lost royalties. Touring, for instance, remains underdeveloped. Igboko highlighted poor venues, equipment shortages, and insecurity in certain regions, all of which push artists to perform abroad, depriving the local economy of revenue.
“Due to inadequate infrastructure, insecurity, and low purchasing power, our top artists perform mostly outside Nigeria,” he said. “This drives up their value abroad but makes them less accessible to local audiences.”
Piracy and broken CMO systems also rob artists and rights holders of income. “The lack of structure limits scalability. Investors want predictability,” Chanetsa reiterated.
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Solutions exist
Both Chanetsa and Igboko stressed the need for systemic education and government involvement.
“Tax incentives, copyright enforcement, or national grants, like what South Korea did, could change everything,” Chanetsa said. He emphasised the importance of educating creators on rights, royalties, and contracts.
“Nigeria has world-class talent, but many artists don’t understand split sheets, publishing, or even basic legal terms.”
He urged the government to embed music business in formal education, including universities, academies, and even high schools.
“Platforms like Masters Of The Industry(M.O.T.I.) help fill the gap, but we need stronger partnerships between global players, executives, and schools to build a new generation of music entrepreneurs.”
Igboko also praised initiatives like the Music Business Academy for Africa, Mavin’s Future 5, and Sarz Academy, but called on the government to help scale them. “If you don’t know the standard, you can’t improve. We need better infrastructure—studios, hubs, and digital systems for rights management.”
