In its annual Loud & Clear report focusing on Nigeria, Spotify revealed a staggering increase in earnings for Nigerian artists in 2023, more than doubling their earnings from the platform compared to the previous year, totaling over N11 billion. The report also noted a remarkable 2,500% increase in royalties to Nigerian artists since 2017.
Spotify emphasized that it’s just one of many platforms contributing to artist revenue, alongside others like YouTube Music, Apple Music, and Amazon Music. The decision to release this data, marking the second time Spotify has done so for Nigeria, aimed to enhance transparency in the music industry by sharing royalty payments and illuminating the global streaming economy.
Earlier reports from Spotify disclosed a total payment of $9 billion in royalties to artists worldwide over the past year.
Key Insights
The data revealed a quadrupling in the number of Nigerian artists earning over N10 million in royalties since 2018. More than half of these royalties went to independent artists or labels, demonstrating the leveling effect of streaming platforms.
Spotify listeners discovered Nigerian artists nearly 950 million times in 2023 alone.
Jocelyne Muhutu-Remy, Spotify’s Managing Director for Sub-Saharan Africa, hailed the significant growth in royalties earned by Nigerian artists, attributing it to their talent, creativity, and global appeal. She noted a genre revolution in Nigeria’s music scene, with increased popularity seen in local genres like Highlife, Igbo Pop, and Fuji, which experienced triple-digit growth in listenership in 2023.
The Streaming Revolution in Africa
Africa’s music scene is on an upward trajectory, fueled by technology that allows artists to reach global audiences and financially benefit from their work. The 2024 International Federation of the Phonographic Industry (IFPI) report highlighted Sub-Saharan Africa as the world’s fastest-growing music revenue market, with a remarkable 24.7% growth rate. Paid streaming services contributed significantly to this growth, making up 24.5% of the revenue, with Sub-Saharan Africa being the only region surpassing 20% growth.
IFPI’s report stated, “There was a positive story of growth across the globe; every region had healthy revenue growth in 2023, and five regions posted double-digit percentage gains. Sub-Saharan Africa remained the fastest-growing area.”