Nigeria’s music economy is expanding, but industry executives say a large social media following alone does not ensure a viable entertainment career as the cost of developing, marketing and monetising talent rises.
Joseph Layode, founder of Tourkhey Entertainment, said audience size should not be the only measure used to determine whether an emerging talent is commercially viable. “Audience size and engagement are important, but I also look at the quality of the audience, the talent’s growth rate, personality, discipline, marketability and ability to connect with people,” Layode said.
His position comes as Nigeria’s music industry records rapid growth in streaming, international touring and digital consumption, while artists, managers and labels face increasing pressure to convert that attention into sustainable revenue.
Streaming scale versus individual earnings#
Spotify reported that Nigerian artists generated more than 30 billion streams on its platform in 2025, producing about N60 billion (Nigeria’s naira) in royalties.
- Nigerian artists accounted for more than 80 percent of tracks on Spotify Nigeria’s Daily Top 50.
- Local streams of Nigerian artists increased by 170 percent year on year.
- Independent artists and labels accounted for about 58 percent of royalties generated by Nigerian artists on the platform.
The figures suggest that Nigerian music has become a significant digital business, but they also expose the difference between audience growth and individual commercial success. In 2023, Nigerian artists earned N25 billion from Spotify, twice the amount recorded in 2022. The number of Nigerian artists earning more than N10 million from the platform was three times higher than in 2018. Yet the earnings remained a relatively small share of Spotify’s global payouts, illustrating the importance of developing audiences beyond Nigeria, where streaming revenues can be substantially higher.
Muyiwa Awoniyi, manager of Nigerian singer Tems, has said one million Spotify streams generated about $300 in Nigeria, compared with as much as $10,000 in Sweden. The disparity is largely linked to differences in subscription prices, advertising markets and the value assigned to streams in different territories.
The cost of building an artist#
For managers, building an artist is no longer simply about getting a song to trend. It involves identifying the right audience, expanding into higher-value markets and creating several sources of income around the artist.
That process can be expensive. In September 2025, executives in Nigeria’s music industry raised concerns about investing billions of naira in artists without necessarily recovering those investments. The expenses can extend beyond recording and promotion to branding, accommodation, clothing and other support required to allow an artist to concentrate on their career.
An older estimate from Nigerian talent manager Oyin Ameen illustrates the potential scale of the commitment. Ameen said it could cost about N20 million a year to run a single artist, with the figure potentially doubling or tripling depending on the strategy and ambition of the business. He described the industry as a “feast or famine business”, reflecting the uncertainty surrounding returns on artist development.
Revenue, contracts and market growth#
The economics become more complicated when an artist starts generating revenue. Lolu Olumideko, a music executive, said at an industry conference that digital platforms had made it easier for artists to reach audiences directly and track their return on investment. However, he noted that how quickly an investment is recovered depends on the contractual relationship, particularly in 360 deals, where labels can participate in several of an artist’s revenue streams.
This means a large following can still be a weak business proposition if that audience does not translate into streams, ticket purchases, brand partnerships, merchandise sales, licensing opportunities or other measurable commercial activity.
PwC data showed that Nigeria’s entertainment and media revenue rose 11.2 percent to $4.1 billion in 2024 from $3.7 billion in 2023. Music, radio and podcasts generated $59 million in 2024 and are projected to reach $85 million by 2029. Nigeria’s broader entertainment and media market is projected to generate $4.9 billion in 2026, according to PwC’s 2026 Nigeria Economic Outlook, with digital platforms, online video and digital music among the forces supporting the sector’s expansion.
Yet the growing market is also raising the amount of capital required to compete. Abuchi Ugwu, CEO of Chocolate City, said in 2024 that the industry needs stronger investment structures and infrastructure. He argued that Nigerian banks should be willing to lend against intellectual property.
