In a significant boost to Nigeria’s music industry, Spotify, the popular music streaming platform, has announced that it paid out over N25 billion in streaming royalties to Nigerian artists in 2023. This marks a remarkable surge from the N11 billion earned in the previous year.
The revelation comes from Spotify’s annual Loud & Clear report, which shines a spotlight on the Nigerian market. The report underscores a staggering 2,500 per cent increase in royalties to Nigerian artists since 2017.
While Spotify is a major player, it’s important to note that Nigerian artists also earn revenue from other platforms like YouTube Music, Apple Music, and Amazon Music.
This is the second time Spotify has released specific data on Nigeria, a move aimed at fostering transparency in the music industry by divulging royalty payments and elucidating the global streaming economy.
A global report earlier this year revealed that Spotify paid a total of $9 billion in royalties to artists worldwide in the past year.
According to Spotify’s data, the number of Nigerian artists earning over N10 million in royalties quadrupled since 2018, with more than half of the royalties going to independent artists or labels.
The report also highlights that Spotify listeners discovered Nigerian artists nearly 950 million times in 2023.
Commenting on the report, Jocelyne Muhutu-Remy, Spotify’s Managing Director for Sub-Saharan Africa, emphasized, “The significant growth in royalties earned by Nigerian artists on our platform is a powerful testament to their talent, creativity, and global appeal.”
Muhutu-Remy also pointed out a genre revolution in Nigeria’s music scene, with increased popularity across local genres. Genres like Highlife saw a 224 per cent growth, Igbo Pop increased by 303 per cent, and Fuji grew by 187 per cent in terms of listenership in 2023.
Africa’s music scene has been witnessing steady growth, driven by technology that enables artists to reach global audiences and profit from their craft.
According to the 2024 International Federation of the Phonographic Industry (IFPI) report, the Sub-Saharan Africa market boasts the world’s fastest-growing music revenue, with a staggering 24.7 per cent increase. Paid streaming services played a significant role, contributing 24.5 per cent of the revenue.
IFPI highlighted Sub-Saharan Africa as the only region surpassing 20 per cent growth, making it the fastest-growing area globally.
