Nigerian artists achieved a significant milestone in 2024, earning over ₦58 billion (~ $37.5 million) in royalties from Spotify, according to the platform’s latest “Loud & Clear” report. This figure represents a more than twofold increase from 2023 and is five times higher than their 2022 earnings.
This figure highlights the global appeal of Nigerian music and prompts a closer examination of how these earnings compare globally. Despite this growth, the earnings of Nigerian artists remain modest compared to that of top global artists. This disparity highlights the ongoing challenges within the streaming economy, where a small percentage of artists capture the majority of revenue.
How do Nigerian artists fare?
Independent artists and labels have seen notable growth, collectively generating more than $5 billion from Spotify in 2024, accounting for about half of the total royalties paid out. For instance, Taylor Swift reportedly earned over £79.8 million (approximately $100 million) in 2024, making her one of the platform’s highest earners. The Weeknd earned around £39.8 million (approximately $50 million). Ariana Grande and Bruno Mars made £30 million (approximately $19.5 million) and £25 million (approximately $20.3 million), respectively.
Despite the significant total payouts, the Loud & Clear report highlights that a vast majority of artists on Spotify earn modest amounts. Only about 0.6% of the approximately 225,000 artists on the platform earned over $1 million in 2024. Major label deals still take a large cut of streaming royalties, leaving many artists with far less than their headline earnings suggest.
Only 4.4% of artists earned at least $131,000 annually, underscoring the financial struggles many face in the streaming economy. However, Nigerian artists saw remarkable growth, with earnings surging from ₦11 billion in 2022 to ₦25 billion in 2023, more than doubling in just one year. In contrast, Latin American artists, a similarly fast-growing market, generated over $1 billion in 2024, highlighting the significant gap between regions. Meanwhile, top US artists individually made over $10 million each, further emphasizing the stark disparity in global music earnings.
The global appeal of Afrobeats has propelled Nigerian artists to new heights, with its infectious rhythms and melodies driving massive streaming numbers worldwide. As the genre continues to captivate international audiences, streaming platforms have become a major source of revenue for these musicians.
Spotify’s expansion into African markets has further fueled this growth. With increased investment in the region, more local listeners are subscribing to the platform, boosting ad revenue and overall earnings for Nigerian artists.
Additionally, the rise of independent musicians in Nigeria has reshaped the industry. By bypassing traditional record labels, many artists now retain greater control over their music and earn a larger share of streaming revenue, making the digital era especially lucrative for self-released talent.
With Spotify’s payouts increasing, Nigerian artists are well-positioned to capitalise on global demand. However, the ongoing debate over fairer streaming royalties continues. Many musicians are calling for better revenue-sharing models to ensure their growing popularity translates into sustainable income.
As Afrobeats continues its global takeover, the key question remains: How can streaming services like Spotify ensure that artists, not just labels, truly benefit from their success?
