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Nigerian music, Nollywood and the business behind them.
Music Business

Nigerian Music’s Streaming Growth Needs Better Accounting

A platform royalty total cannot show what artists retained. The next question is how earnings are accounted for across recordings, songwriting and live performance.

Editorial illustration of a recording studio microphone, headphones and royalty accounting papers, representing music streaming income.

Spotify says Nigerian artists generated more than ₦60 billion on its platform in 2025. The News Agency of Nigeria reported the figure from the company’s Loud & Clear release on 16 March 2026. It is a substantial reported total, but it does not tell us what individual artists took home.

Spotify’s own explanation of its payment system makes the distinction clear. It pays rights holders, who then account to artists and songwriters under their agreements. The route from platform revenue to a performer’s income can involve different rights and different contracts.

For GYOnlineNG, that makes accounting a more useful starting point than declaring that streaming has either saved or failed Nigerian music. A growing total can coexist with very different outcomes for the people whose work generated it.

Follow the payment to the artist

Spotify distinguishes recording royalties from publishing royalties. Recording payments generally pass through a label or distributor. Publishing payments concern the composition and can involve publishers and collection organisations. An artist who also writes songs may have interests in both, but they are not the same payment.

Spotify also says it uses streamshare rather than a fixed price for each play. Listener markets and subscription or advertising revenue affect the calculation. A single advertised rate for a Nigerian stream cannot describe every artist’s settlement.

The relevant documents are the agreement and the royalty statement. They should allow the artist to identify the reporting period, the revenue being accounted for and the deductions applied. Where an advance is involved, its recoupment status matters too.

These are practical questions about a business relationship. A public stream counter cannot answer them.

Touring needs its own accounts

Live performance should be assessed separately. A concert’s ticket receipts, an artist’s performance fee and the amount left after costs are different measures. Comparing any of them with a platform-wide royalty figure requires compatible definitions.

This article does not establish a national percentage split between touring and streaming income. Such a claim needs a defined sample of artists, a reporting period and a consistent meaning of earnings. Established touring acts and artists who rarely perform live should not be assumed to have the same business.

A stronger assessment of domestic touring would examine individual show settlements: ticket income, sponsorship, venue charges, production, travel and the artist’s agreed payment. Those records would help explain where a concert makes or loses money. An attendance headline alone will not.

Ownership needs more than a company name

A distributor appearing in a release credit does not establish that it owns the recording. Neither does a company’s share of measured streams establish its share of artist income. Those questions require the relevant rights, agreements and dataset definitions.

The useful test for a distribution relationship is what the artist receives for the cost and rights committed. Clear statements, understood deductions and a workable route for resolving discrepancies make that relationship easier to assess.

Our argument for stronger local music-business infrastructure starts there. Investment in accounting, rights administration and professional management can make a catalogue easier to operate as a business. It is a recommendation about where attention should go, not proof that every Nigerian company lacks those capabilities.

The next meaningful question after Spotify’s headline total is how much reached the artists and songwriters concerned, under which agreements, and after which deductions. Answering it requires statements and contracts that a platform-wide announcement does not supply.

Sources: News Agency of Nigeria, 16 March 2026; Spotify for Artists royalties guide; Spotify’s explanation of streamshare. Spotify is the source of its reported payout figures and payment-policy explanation; these are not an independent audit of artist receipts.

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Correction note — 14 October 2026

An earlier version presented touring and streaming earnings shares without sufficient information about their source, sample and comparability. It also made claims about distribution ownership, dollar-denominated growth, concert revenue and Nollywood YouTube income that were not adequately substantiated in the article. Those claims and the associated unsupported graphics have been removed. The revised analysis distinguishes platform-generated royalties from artists’ eventual receipts.

Reporting by Olayinka Koya

Olayinka Koya leads GYOnlineNG, an independent publication based in Ibadan, Nigeria. He covers Nigerian music, Nollywood, and the business decisions shaping the entertainment industry.

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