Nigeria's Music Rights Battle Intensifies as Streaming Revenue Surges

Nigeria's music industry is witnessing a surge in streaming revenue, but rising disputes over intellectual property rights are creating legal and financial challenges for artists and labels.

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Nyakundi Report

Newsroom 4 min read

Primary source BusinessDay Nigeria

Nigerian artists generated over N60 billion from Spotify in 2025 through 30.3 billion streams, underscoring the growing economic value of the country’s music catalogues. However, as streaming revenue, licensing deals, and catalog valuations escalate, conflicts over ownership, royalty collection, and investment recovery are intensifying, according to legal and industry experts. Disputes involving artists like Runtown, Shallipopi, and Seyi Vibez, as well as labels such as Eric Many and Dapper Music, highlight the complexities of rights management in a rapidly evolving digital landscape.

The core issue revolves around the financial value of successful songs, which hinges on who controls the rights, manages revenue, and can prove entitlements. Chukwudi Chimezie, an entertainment and intellectual property lawyer, noted that streaming platforms now provide artists with detailed data on streams and earnings, empowering them to negotiate better terms with labels. “Artists can now build global audiences without relying solely on traditional labels, and this transparency gives them more leverage,” he said.

Revenue distribution remains complex, as streams generate income that flows through multiple entities, including digital platforms, distributors, labels, publishers, and collection agencies. The distinction between master rights (the sound recording) and publishing rights (the composition and songwriting) is critical. Different parties may own these rights, leading to competing claims over the same revenue stream. “A song can generate significant income while multiple stakeholders have overlapping or separate interests,” Chimezie explained.

When labels provide advances or finance an artist’s production, marketing, and other costs, recoupable deals come into play. These agreements allow labels to recover expenses from future royalties before artists receive their share. Damilola Adeniyi, a Nigerian music business professional, warned that many emerging artists sign contracts without fully understanding royalty splits, recoupment terms, or accounting practices. “Desperation often leads artists to accept unfavorable deals without legal consultation,” he said.

The case of Runtown, whose real name is Douglas Jack Agu, illustrates the long-term consequences of unresolved contractual obligations. In July 2026, the High Court of the Federal Capital Territory ruled that Runtown remained bound by a 2016 recording agreement with Eric Many Limited. The court ordered him to deliver master recordings for one album and pay N266.69 million in unrecouped costs, plus N50 million in damages and legal fees. The ruling underscores the importance of adhering to termination clauses and contractual obligations, as Chimezie emphasized: “Walking away is not termination; it requires following formal procedures.”

A similar dispute involving Shallipopi, Seyi Vibez, and T.I Blaze with Dapper Music has drawn public attention. The artists allege issues with contracts, royalties, and financial accounting, while Dapper Music denies wrongdoing and calls for independent audits. The case highlights the need for transparent metadata, royalty statements, and audit rights to resolve revenue disputes. Dapper Music’s scale—having surpassed one billion streams—amplifies the stakes, as catalogues become critical assets for investors and buyers.

As African music catalogues attract increasing investment, their valuation depends on clear ownership, verifiable revenue histories, and predictable cash flows. BusinessDay has reported on efforts to treat music rights as financial assets, with investors seeking to acquire or manage catalogues for long-term royalty streams. However, unresolved legal claims or opaque accounting practices can hinder valuation and marketability. “A catalogue is only worth what can be verified,” Adeniyi said, stressing the importance of contractual clarity for both legal and financial stability.

The growing complexity of music rights in Nigeria reflects broader trends in the global entertainment industry. As streaming continues to reshape revenue models, the need for legal expertise, transparent contracts, and robust accounting systems becomes increasingly urgent. For artists, labels, and investors, the stakes are high: the value of a song is not just in its popularity, but in who controls its financial future.

The disputes also raise public-interest concerns, as unresolved conflicts could deter investment in Nigeria’s music sector and limit opportunities for emerging artists. Legal clarity and industry standards are essential to ensure fair compensation and sustainable growth. With the sector’s rapid expansion, the balance between artistic creativity and commercial interests remains a critical challenge.

BusinessDay Nigeria continues to monitor developments in the music industry, providing in-depth analysis of the legal, financial, and cultural implications of the streaming boom. As Nigeria’s music catalogues grow in value, the need for transparency, accountability, and equitable rights management has never been more pressing.

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