In the digital age, streaming platforms have revolutionized how we consume music and how artists earn from their craft. However, the earnings landscape isn’t equal across the globe, as Nigerian artists have shared their struggles with disproportionately low payouts for local streams compared to international ones.
Take Burna Boy, a global icon in Afrobeats, for example. Recently, he highlighted the glaring income gap: Nigerian artists typically earn $300–$400 for every million local streams, whereas their counterparts in the US and UK receive $3,000–$4,000 for the same milestone.
So, why does this disparity exist? Here are a few key factors:
- Market Size and Revenue Models: The revenue sharing from ads and subscriptions in smaller markets like Nigeria is significantly lower. With fewer subscribers and lower subscription fees—Spotify Premium costs only $0.82 in Nigeria compared to $10.99 in the US—local artists earn much less.
- Currency Value: Nigeria’s local currency, the Naira, is weaker compared to the US Dollar or British Pound. This drastically affects the monetary value per stream.
- Streaming Platforms’ Priorities: These platforms operate globally but set revenue strategies based on regional economies, which often leaves emerging markets like Nigeria at a disadvantage.
Despite these challenges, Nigerian artists have made remarkable strides on the global stage. Spotify’s 2024 Loud & Clear report revealed that Nigerian musicians earned more than ₦58 billion in royalties last year, marking significant growth fueled by Afrobeats’ global rise.
However, the road ahead involves critical steps like restructuring revenue models and exploring partnerships that better compensate artists. It’s equally important for Nigerian artists to tap into international markets for greater financial sustainability.
