Nigerians Lead Africa in Local Music Streaming Consumption, Report Shows

A recent report by Luminate indicates that Nigerians are the most avid consumers of local music within Africa and the Middle East, with 60% of music streams in the country going to Nigerian artists and songs. This figure surpasses that of any other nation in the regions surveyed, highlighting the growing dominance of Afrobeats and other Nigerian genres within the country's music landscape.

Nigerian Music Consumption Outpaces Regional Peers

The Luminate report underscores the significant growth of music streaming in Nigeria, fueled by a large and increasingly tech-savvy youth population that is progressively transitioning from music piracy to legitimate streaming platforms. This shift is reflected in Spotify's 2024 fiscal report, which revealed a 206% increase in local consumption of Nigerian content. Furthermore, Nigerian listeners have created over 6 million playlists, further cementing the popularity of local music.

Economic Factors Impact Royalties Despite High Consumption

Despite the high volume of local music consumption, Nigerian artists often receive comparatively lower royalty payouts than their counterparts in other major music markets. This disparity is primarily attributed to economic factors, particularly the low subscription fees charged by streaming platforms in Nigeria, which are tailored to reflect the country's economic realities.

Low Subscription Fees: A Double-Edged Sword

Currently, Nigerians pay significantly lower subscription rates for premium streaming services. For example, Spotify Premium costs ₦1,300, YouTube Music Premium is priced at ₦1,700, while Apple Music, Boomplay, and Audiomack are available for ₦1,000 each. These lower fees translate to reduced royalty payouts per stream, impacting the overall earnings of Nigerian artists.

Freemium Models and Their Influence

Apart from Apple Music, most streaming platforms also offer ad-supported "freemium" options. The widespread adoption of these free tiers further dilutes royalty payouts, as revenue generated from advertising is typically lower than that from paid subscriptions. If a significant portion of Nigerian listeners relies on freemium accounts, it will inevitably affect the value of royalties distributed within the country.

Expert Perspectives on the Future of Nigerian Music Royalties

Music industry analyst, Osagie Alonge, emphasizes the need for a multi-pronged approach to address the royalty issue. "While the passion for local music is evident, sustainable growth requires economic empowerment. Government policies that stimulate economic growth will ultimately translate to higher disposable incomes, leading to increased adoption of paid streaming subscriptions," he stated. He also suggests exploring alternative revenue streams, such as brand partnerships and merchandise, to supplement streaming income.

Similarly, entertainment lawyer, Foza Fawehinmi, stresses the importance of education and advocacy. "Nigerian artists and consumers need to be better informed about the intricacies of music streaming contracts and royalty distribution. Collective bargaining and advocacy for fairer terms with streaming platforms are crucial steps in ensuring artists receive equitable compensation for their work," Fawehinmi noted.

Historical Context: The Rise of Afrobeats and Local Content Policies

The current dominance of Nigerian music is a culmination of years of strategic efforts to promote local content. Over two decades ago, policies were implemented to prioritize Nigerian music on radio and television, laying the foundation for the vibrant ecosystem that exists today. This initiative, combined with the unique sound and cultural relevance of Afrobeats, has propelled Nigerian music to international prominence.

Looking Ahead: Sustaining the Momentum

Despite the challenges, the future of Nigerian music remains bright. The dedication of Nigerian consumers to supporting local artists is undeniable, even amidst economic hardship. The onus is now on the government, streaming platforms, and industry stakeholders to create a more sustainable and equitable ecosystem that rewards artists fairly for their contributions and fosters continued growth within the Nigerian music industry.

The report serves as a reminder of the power of local content and the need for strategic policies that support its continued growth and success. It emphasizes that while consumption is high, economic realities must be addressed to ensure that Nigerian artists reap the full benefits of their global popularity.