The Business Side of Nigerian Music: Royalties, Publishing, and Contracts

The business side of Nigerian music has grown just as fast as Afrobeats itself. Behind every hit song, there are systems, contracts, rights, and revenue streams that determine how much an artist truly earns. From royalties to publishing deals and the fine print in contracts, understanding the business side of Nigerian music is essential for upcoming artists, managers, producers, and even fans who want to know how the industry works.

Understanding the Nigerian Music Industry Landscape

How the Industry Has Evolved in the Digital Era

Digital streaming platforms like Spotify, Apple Music, YouTube, Audiomack, and Boomplay have transformed the business side of Nigerian music. Artists no longer rely solely on CD sales or radio play; today, digital consumption determines recognition and income.

Key Stakeholders and Their Roles in Music Business

The Nigerian music ecosystem includes artists, managers, record labels, publishers, distributors, entertainment lawyers, performing rights organizations, and promoters. Each stakeholder plays a critical role in how revenue flows.

Music Royalties in Nigeria Explained

Types of Royalties Artists Can Earn

On the business side of Nigerian music, royalties form the bedrock of artist earnings. Common royalty types include:

• Mechanical royalties from downloads and physical sales
• Performance royalties from radio, TV, live shows, and public play
• Streaming royalties from DSPs
• Sync royalties from film, TV, commercials, and games

What Is an Artist Management Agreement in Nigeria?

An Artist Management Agreement in Nigeria is a formal contract that defines the professional relationship between an artist and their manager.

• The Artist: Any individual involved in entertainment—music, acting, comedy, dance, or any other creative field.
• The Manager: An individual or company responsible for guiding the artist’s professional growth, negotiating opportunities, managing public relations, and helping the artist reach their full potential.

Both parties must sign this agreement. It serves as a roadmap for handling the artist’s career while protecting the rights and interests of each side. Given the manager’s extensive responsibilities, having a written agreement is essential to prevent misunderstandings and conflicts.

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Key Components of the Artist Management Agreement in Nigeria

For the agreement to be effective, it must include the following essential clauses:

1. Parties Clause

This clause specifies the full legal names and addresses of both the artist and the manager (or management company), including any stage names used by the artist.

2. Responsibilities of Each Party

This section clarifies what the artist and manager are expected to do. Common responsibilities of a manager include:

• Career guidance
• Communication with record labels (for musicians)
• Booking shows and managing schedules
• Securing endorsement deals
• Brand positioning and publicity

All duties should be clearly stated to prevent ambiguity.

3. Terms and Duration

Artist management agreements typically run for one to two years. Shorter terms are recommended so both parties can evaluate compatibility. Renewals are optional and must be mutually agreed upon.

4. Manager’s Authority

This clause outlines the decisions a manager can make on behalf of the artist, with or without prior approval.
It may cover:

• Contract negotiations
• Publicity and branding
• Representation at events or meetings

Clearly defining authority prevents misuse of power and ensures transparency.

Compensation, Revenue Sharing, and Financial Terms

Money is often the biggest source of conflict in artist–manager relationships. Clear financial terms within the Artist Management Agreement in Nigeria help avoid disputes.

Expenses

Any money spent on the artist—such as for promotion, rebranding, or show bookings—must be clearly documented. The artist should be involved in financial decisions to maintain transparency.

Sharing Formula

Profit-sharing should reflect the manager’s financial investment and contributions. If a manager funds branding, studio sessions, or promotions, they may justifiably receive a larger share of earnings.

Compensation Structure

Managers are generally paid a percentage of the artist’s income.
Industry standards in Nigeria range from 15% to 20% of earnings from:

• Live performances
• Album sales
• Endorsement deals
• Brand collaborations
• Any contracts secured through the manager’s efforts

The Importance of Legal Oversight

Many disputes in the Nigerian entertainment scene stem from vague or poorly drafted contracts. Rapid success often leads to disagreements, especially around finances or contract terms.

To prevent this, a qualified legal practitioner should draft or review every Artist Management Agreement in Nigeria. A solid agreement ensures:

• Clear rights and obligations
• Accurate financial structures
• No vague or misleading clauses
• Protection for both parties

A properly executed agreement is legally enforceable in court.

Termination Clause

Every contract must include a termination clause stating:

• Conditions for ending the agreement
• Required notice periods
• Consequences of early termination
• Remedies in cases of breach

This protects both parties if the relationship becomes unworkable.

Ready to Take Your Music Career Seriously? Let Sanyawave Guide You.

The Nigerian music industry is bigger, smarter, and more competitive than ever. Whether you’re an artist, manager, producer, or label executive, the difference between success and struggle often comes down to understanding the business side—contracts, royalties, publishing, and the fine print that shapes your earnings.

At sanyawave, we help you stay ahead with expert insights, and resources designed for the modern Nigerian creative.
1. Learn how to protect your rights
2. Understand contracts before you sign
3. Build a profitable, sustainable music career

Visit sanyawave today and empower your journey with industry knowledge that pays.
Don’t just make music—master the business behind it.

Frequently Asked Questions on the Business side of Nigerian music

1. What is the typical compensation rate for managers in an Artist Management Agreement in Nigeria?

Managers typically earn 15% to 20% of the artist’s overall income, including earnings from shows, endorsements, and music sales.

2. What key rights do music copyrights cover?

Music copyright covers two major rights:

• Master Rights (sound recording rights)
• Composition Rights (publishing and songwriting rights)

3. What types of music royalties can Nigerian artists earn?

Artists can earn:

• Mechanical royalties
• Performance royalties
• Synchronization royalties
• Print music royalties

4. Which Collective Management Organizations (CMOs) operate in Nigeria?

The primary CMOs are:

• Musical Copyright Society of Nigeria (MCSN)
• Copyright Society of Nigeria (COSON) — currently with a suspended license

These organizations collect royalties on behalf of copyright owners.

5. What happens when a party breaches an Artist Management Agreement in Nigeria?

A breach can result in early termination. The aggrieved party may pursue legal action, depending on what the termination clause specifies regarding remedies and penalties.