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Nigerian artists have earned over ₦143 billion ($105.62 million) from Spotify since 2023, with annual revenues rising over the period. But that growth is beginning to stall, and the reason may lie in where the streams are coming from.
According to Spotify’s annual Loud & Clear report, Nigerian artists’ earnings have grown by 140% in three years, but between 2024 and 2025, growth was only 3.45%.
Spotify Royalties: The Growth Plateau
Tap a year to reveal how audience location impacted revenue growth.
+3.45% YoY
Despite local streams jumping by 170%, overall revenue barely moved. Why? Nigerian streams pay out significantly less than international ones due to lower subscription costs (~$1.17 vs. ~$13.78 in the West).
At the same time, local consumption of Nigerian music jumped by 170% in 2025, indicating that more streams are now coming from Nigeria.
Nigerian artists are earning more from Spotify than ever, but the growth is slowing, and where the streams are coming from explains why. As Nigerian listeners drive a surge in local consumption, they are also dragging down the value of each stream, exposing a core tension in the economics of global music streaming.
Spotify does not pay a fixed rate per play. It distributes revenue based on how much money is generated in each market. As streams begin to tilt towards Nigeria, where subscription prices are among the lowest globally, the payout per stream falls.
The economics of a Nigerian stream
Streaming is now the dominant revenue source for recorded music, accounting for 69.6% of global industry revenues in 2025, according to the International Federation of the Phonographic Industry (IFPI), the global body for the recording industry worldwide.
But as Nigerian artists start to get more streams at home, low subscription spend caps how much they can make.
In 2025, Nigerian artists generated ₦60 billion from 30.3 billion streams. That translates to roughly ₦1.98 per stream.
While the platform did not disclose the total number of streams in 2024 and 2023, one million streams in Nigeria generate just $300, while the same streams in Sweden are worth up to $10,000, according to this 2025 report.
“Even if an artist has 10 million fans in Nigeria,” media expert Akíntúndé Babátúndé wrote in this LinkedIn post, “They could still earn less than someone with just one million fans in a high-income country.”
The difference comes down to Spotify’s territorial pricing model. Subscription fees vary by country, and payouts are tied to revenue generated in each market.
In Nigeria, Spotify’s premium plan costs around ₦1,600 ($1.17) monthly. In Sweden, where the company is headquartered, subscriptions cost about $13.78. Lower subscription fees mean smaller revenue pools, which translate into lower payouts per stream.
Spotify royalties are distributed based on an artist’s share of total streams within a market.
“If an artist accounts for 1% of all streams in a particular country, their selected rightsholder(s) receive 1% of the recording royalties we pay there,” the streaming platform said.
Spotify doesn’t pay artists directly. It pays out roughly two-thirds of every dollar it generates from music streaming to rights holders. Before artists receive their share, that money flows through labels, distributors, publishers, and collective management organisations.
Spotify has paid out $30 billion globally between 2023 and 2025, and Nigerian artists have accounted for just 0.36% of that total.
Global Spotify Payouts
Steady, compounding growth in a mature market.
Spotify’s global payouts have grown by about 22.22% since 2023. On the continent, Nigeria’s growth is faster than South Africa’s. South Africa’s 2025 Spotify earnings figures have not been released, but artists’ earnings grew by 56.25% between 2023 and 2024.
South Africa Spotify Payouts
Explosive early-stage market growth.
While Nigeria’s earnings are rising, South Africa remains the region’s largest market. Sub-Saharan Africa generated $120 million in recorded music revenue in 2025, with South Africa accounting for 78.1% of that total, according to IFPI.
Who is ‘capturing’ the money?
About 58% of Spotify royalties earned by Nigerian artists in 2025 went to independent artists and labels. Independent artists typically produce and distribute their music by themselves without using record labels. According to this report, Nigerian artists under this category include Ric Hassani, Kizz Daniel, and Nasboi.
At the same time, three major distribution players—Empire, Sony, and Universal Music Group—accounted for 68% of Nigeria’s total streaming volume, highlighting the continued dominance of global music companies.
Spotify did not disclose individual artist earnings, but it said the number of Nigerian artists earning over ₦10 million ($7,386) yearly in royalties has continued to grow since 2018.
Globally, the number of artists who generated over $1,000 in royalties on Spotify rose to 303,200 in 2025.
127,100 are in the over $5,000 bucket, and over 81,100 are in the over $10,000 bucket. Only 80 artists are in the over $10 million bucket, Spotify’s highest tier.
Scale without proportional value
Beyond payouts, the reach of Nigerian music continues to expand rapidly.
Nigerian artists recorded 1.6 billion listening hours on Spotify last year. They were discovered by first-time listeners more than 1.3 billion times, a 26% increase from 2024. Local consumption of Nigerian artists is up by 170% on Spotify alone.
“Nigeria’s music story continues to be one of creativity, innovation, and global cultural influence,” said Jocelyne Muhutu-Remy, Managing Director, Spotify in Africa, in a statement.
At home, Nigerian music dominated consumption. Local artists accounted for over 80% of tracks on Spotify Nigeria’s Daily Top 50. Streams of Nigerian female artists grew by 55%, while indie artists saw a 75% increase in local streams.
Globally, Nigerian music appeared in nearly 320 million user playlists and over 12 million playlists locally. More than 60 million playlists featuring Nigerian artists were created during the year. Nearly 2,000 editorial playlists included Nigerian music.
“Africa is a regional market where, when great music breaks, it truly goes global,” said Simon Robson, President, EMEA, Recorded Music, Warner Music Group, in IFPI’s 2026 global music report.
Streaming has made Nigerian music more accessible than ever. But it is also exposing a structural problem: low-value markets generate low-value streams.
As listening continues to shift inward, revenue growth is expected to continue stalling.
However, Nigerian artists are increasingly using streaming as a discovery engine rather than the primary source of income. They are converting streams into touring, brand deals, and other revenue streams where the economics are stronger.
