Nigerians Lead Africa in Local Music Streaming, Report Shows

Nigerians stream more local music than any other country in Africa and the Middle East, according to a recent report by Luminate. The report indicates that 60% of music streams within Nigeria are dedicated to Nigerian artists and songs, highlighting the nation's strong preference for homegrown talent.

The Rise of Afrobeats and Streaming in Nigeria

This surge in local music consumption reflects the significant growth of music streaming platforms in Nigeria. A large, young population is increasingly transitioning from music piracy to legal streaming services, contributing to the expansion of the music industry. Spotify's 2024 fiscal report showed a remarkable 206% growth in local consumption of Nigerian content, with listeners creating over 6 million playlists featuring Nigerian artists.

Furthermore, the number of Nigerian artists generating at least ₦10 million in royalties from Spotify has more than doubled since 2023 and more than tripled compared to 2022, signaling the increasing commercial success of Nigerian music on a global scale.

Historical Context: Policies and Cultural Identity

The popularity of Nigerian music has been steadily growing over the past two decades. According to Dr. Amaka Igwe, a cultural studies professor at the University of Lagos, "The conscious decision to prioritize local content through government policies enacted over two decades ago laid the foundation for a robust ecosystem where Nigerian music thrives. These policies, combined with the inherent cultural connection Nigerians have with their music, have been instrumental in shaping the industry we see today."

Afrobeats has emerged as a dominant force, becoming one of Nigeria's most prominent cultural exports. The genre's unique sound and relatable themes resonate deeply with Nigerian audiences, fostering a strong sense of cultural identity and pride.

The Royalty Conundrum: High Consumption, Low Payouts

Despite Nigerians’ significant contribution to streaming numbers for local artists, royalty payouts remain relatively low compared to those in other major markets. This discrepancy is largely attributed to economic factors.

Low Subscription Fees

Music streaming platforms typically adjust their subscription fees to align with the economic conditions of different countries. In Nigeria, users pay significantly lower subscription rates compared to their counterparts in wealthier nations. For example, Spotify Premium costs ₦1,300, YouTube Music Premium is priced at ₦1,700, and Apple Music, Boomplay, and Audiomack offer subscriptions for approximately ₦1,000 each.

These lower subscription fees directly impact the value of royalty payouts for Nigerian streams. As financial analyst, Kemi Adebayo, explains, "The economics are straightforward. Lower subscription revenue translates to lower royalty payments. While the volume of streams is high, the value per stream is significantly lower due to the pricing structure."

Freemium Models

With the exception of Apple Music, most major streaming platforms offer ad-supported "freemium" options. A higher proportion of Nigerian listeners opting for these free, ad-supported streams further reduces the overall royalty pool available for distribution.

Are Nigerians Doing Enough?

Despite economic challenges, Nigerian music consumers continue to support local content. The high cost of data and relatively low wages limit the disposable income available for music streaming subscriptions for many Nigerians.

The consensus is that Nigerian consumers deserve recognition for their support of local music. Instead of focusing on the low royalty revenue, the focus should shift to addressing the underlying economic issues that hinder the growth of the music industry. Stronger economic growth will lead to increased disposable income, enabling more people to subscribe to paid streaming services. A more robust economy will also allow for an increase in subscription fees, which will ultimately translate into higher revenues for artists and the industry as a whole.