A leading media executive, George Elijah Otumu, on Friday, emphasised the vast economic potential of Nigeria’s music industry, saying the sector is capable of generating significant revenue for the country if properly harnessed.
Otumu, who serves as Executive Editor and Group Managing Director of Naija Standard Newspaper INC USA, made this assertion while delivering the keynote address at the North America Music Awards ceremony held in collaboration with City People Media Group on Friday, March 27.
Drawing from recent industry data, the music executive highlighted the remarkable financial growth of Nigeria’s music ecosystem, noting that the sector has already reached a major economic milestone.
According to him, the figures were derived from Basslines to Billions: Nigeria’s Music Market Intelligence Report, a comprehensive study produced by RegalStone Capital in collaboration with the National Council for Arts and Culture (NCAC).
He explained that the report provides deep insights into the structure, scale, and earning potential of the Nigerian music economy.
Otumu stressed that contrary to popular belief, the industry’s primary revenue driver is not recorded music but live performances.
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He further revealed that concerts, festivals, corporate bookings, religious gatherings, and international tours accounted for the largest share of artists’ income in recent years.
“Far from being driven by recorded music alone, the Nigerian music economy is powered primarily by live performances.
“The report reveals that concerts, festivals, corporate bookings, faith-based events, and international touring accounted for 65.74 per cent of total artist earnings in 2024/2025, making live music the dominant revenue engine for creators,” he added.
While acknowledging the rapid expansion of digital platforms, Otumu pointed out that streaming revenues still trail behind earnings from live shows.
“Streaming and digital platforms, while rapidly expanding in reach and cultural influence, still lag behind live performances in revenue contribution,” he noted.
He disclosed that streaming royalties and social media monetisation contributed about 30.13 percent of the industry’s total earnings, estimated at $181 million within the same period.
The media executive also highlighted the growing influence of global streaming platforms in promoting Nigerian music to international audiences.
“Spotify alone paid Nigerian artists an estimated ₦58 billion ($38 million) in royalties in 2024/2025, more than double the figure recorded the previous year, highlighting strong international demand for Nigerian music,” he said.
Despite these gains, Otumu warned that Nigeria’s digital music economy remains underdeveloped and under-monetised compared to global standards.
He identified several challenges, including low subscription rates, high data costs, weak royalty collection systems, and poor publishing structures.
“Low conversion to paid subscriptions, high data costs, limited digital payment penetration, weak publishing administration, and fragmented royalty collection systems continue to suppress earnings,” he explained.
He added that many artistes are still unable to fully maximise their income due to structural inefficiencies within the industry.
Otumu also pointed to brand endorsements and sponsorships as an emerging revenue stream, particularly for top-tier artistes, noting that such partnerships are increasingly attracting investment from major sectors such as telecommunications, fintech, and consumer goods.
Looking ahead, he expressed optimism about the future of the industry, citing projections that indicate sustained growth over the next decade.
“Basslines to Billions projects that Nigeria’s music industry will grow at a conservative 7 percent annual rate, pushing total revenues beyond ₦1.5 trillion ($1.03 billion) by 2033,” he said.
He further projected that with the right policies and investments, the industry could expand significantly.
“With improved copyright enforcement, stronger publishing systems, better touring infrastructure, and increased private-sector investment, the sector could realistically scale to $3-5 billion annually by 2035,” he added.
Beyond revenue generation, Otumu underscored the broader economic impact of the music industry, linking it to job creation and national development.
“Beyond revenue, the report frames music as a catalyst for broader economic development, linking it to job creation, tourism, fashion, manufacturing, and digital commerce,” he said.
He concluded by calling on policymakers, investors, and stakeholders to prioritise the creative sector as a key driver of economic diversification.
“For policymakers, investors, and industry stakeholders, the message is clear: Nigerian music has already achieved global cultural dominance, but its economic potential remains only partially unlocked,” he stated.
“As the report concludes, Nigerian music is no longer just moving the world. With the right structures in place, it is poised to sustainably enrich the millions of people who create and distribute good music.”
