The perception of music as art and entertainment is ingrained in people. They listen to a trending song, perhaps attend a concert, and that is all to it. Behind the scenes, however, lies a business machine behind every hit record or viral moment. One that, when run well, prints money.
Usually, when people hear the term “Nigerian artist,” they picture glitzy music videos, expensive cars, sold-out shows, and the glamor of fame. Behind all this glamour lies serious hard work. For these artists, music is not merely a passion; it’s a business-a high-stakes, full-time business.
Today, Nigerian artists are not only musicians. They are brands, they’re entrepreneurs, and they’re strategists. The music industry has changed from selling CDs at Alaba to earning dollars from Spotify, endorsements, and international tours.
The article will break down the various means through which Nigerian artists make money. You will see that behind every hit song is a well-thought-out plan and multiple streams of income.
What's in this guide?
1. Royalties from streaming
Starting with the most popular channel through which revenue is generated today-digital music streaming.
Related Articles
- How to become a millionaire by investing
- How to become a LinkedIn influencer
- How to become a voice-over artist
- How to become a travel agent
- How to become a UN volunteer
In years past, artists mostly made their money through physical sales, which included cassettes, CDs, and album launches. But that is changed now; music is now mostly enjoyed online. Spotify, Apple Music, YouTube, Boomplay, and Audiomack have changed the game.
Every time you stream a song, the artist gets a payment. It may seem less than $0.01 per stream, but when counted out for millions of plays, it adds up. For example, an artist receives about $4,000 – $5,000 (before cuts) for 1 million streams on Spotify. Somehow, Nigerian artists with huge followership abroad now earn dollars, even though most of their audience is also here in Nigeria.
And that’s why the artist pushes you to stream: streams = royalties = money. Unlike the show money, streaming is passive; once up, it keeps earning.
However, that doesn’t mean every artist takes home every penny of these earnings. Some might go to the label, distributor, or manager, but a huge chunk still goes to the artist.
2. Monetization on YouTube
Whenever an artist puts a music video or a live session on YouTube, ad revenue comes anytime a song gets played. The more views they get, the more YouTube pays.
A million views could earn anywhere from hundreds to several thousand dollars, depending on the target audience and the advertisement engagement. Nigerian artists like Burna Boy or Rema, who are visible globally, mostly cash out because their audience comprises the US and the UK, where ad rates are higher.
Apart from official music videos, there are also sources of income for artists through:
- Behind-the-scenes clips
- Vlogs and tour footage
- Lyric videos
- Fan reaction videos (via Content ID)
YouTube has been a great source of long-term income for musicians, building a loyal online audience.
Recommended: How to make money on YouTube (Complete Guide)
3. Live shows and performances
Live performance is the biggest source of income for most Nigerian artists; big names such as Wizkid, Asake, and Davido charge millions for a single performance. There are other sources of income on the local side, which include gigs in clubs, weddings, and private events for the mid-tier artist.
Some artists focus on releasing music just to stay relevant so they can continue booking shows.
There are different types of gigs:
- Corporate shows: Paid by banks, telcos, and brands. These are premium.
- Concert tours: Local or international. Artists earn from ticket sales and gate proceeds.
- Club appearances: Short sets, but still good money.
- Private events: Weddings, birthdays, political rallies.
Show money isn’t passive, though. It needs you to perform, travel, and repeat. But when you’re hot, the bookings won’t stop.
4. Brand endorsements and ambassadorships
Big brands want visibility. Artists have influence. Combine the two, and you have endorsement deals.
From telecoms such as MTN and Glo to beverage brands such as Pepsi and Hennessy to tech companies (Boomplay and Oppo) and betting platforms, Nigerian artists have made a lot from these endorsement deals, which often range into the tens or even hundreds of millions of naira.
Sometimes it is not even a brand endorsement. It may well be a brand partnership whereby revenues or sales are shared between the artist and the brand. What matters is that influence means money.
The more followers, engagement, and brand-friendly your image is, the more valuable you are.
5. Licensing and sync deals
Artists can make money when their music is used in movies, TV shows, adverts, video games, documentaries, and so on. This is called sync licensing, and it can pay well.
For instance, if a Nollywood movie uses Fireboy’s “Peru” as an opening track, the movie producers will pay a licensing fee to use that song. The revenues go to the artist (or label), and sometimes they also get paid royalties every time the movie is aired or streamed.
As Afrobeats goes global, sync deals for more Nigerian songs will start turning up in Hollywood films, Netflix shows, and FIFA games. It is almost a backdoor into foreign recognition.
Also Read: How to become an optometrist
6. Merchandise (Merch)
See that hoodie that says “Made in Lagos”? That’s merch. Merch includes anything sold under an artist’s brand, such as wearables, hats, wristbands, or even branded drinks.
While not all Nigerian artists do this well, it’s certainly growing. For example, Olamide, Blaqbonez, and even Portable have started their clothing lines or custom merch tied to their albums or identity.
Merch gives fans a sense of connection with their faves. Wearing merch is one way to do that. And when done well, it creates another stream of income without having an artist lift a mic.
7. Publishing rights and songwriting
This method is often overlooked, but it is also a very powerful method for Nigerian artists to make money. Publishing rights and songwriting income, while not accompanied by applause or trending topics, are, in fact, those quiet streams that keep flowing long after the spotlight has moved away. If you ever wrote a song, you’re entitled to royalties under copyright law every time that song is played. That’s where publishing comes in.
In simpler terms, publishing rights ownership refers to who owns the intellectual concept of song creation, not the audio version, which is streamed or played in clubs, but the lyrics and melody that constitute the essence of the song. This means that anytime a song is aired on the radio, performed on stage, streamed on the net, used in a movie, or even played at an event, somebody ought to get a paycheck for that writing. He or she is the songwriter or any person who made some contributions to its writing. The revenue that comes in is referred to as publishing royalties.
An artist who does not even perform songs can still earn royalties as a songwriter. Some writers in Nigeria earn more from ghostwriting for established names than performing as artists, much to their chagrin. That’s a quiet and long game, but the rewards are sweet, especially with songs going global.
8. Digital distribution and aggregators
Increasing numbers of artists now own their masters and independently distribute their music through DistroKid, TuneCore, Ditto, CD Baby, and more.
These platforms distribute your music to Spotify, Apple Music, Amazon, etc., collect your royalties, and you get almost everything (bar some little fees). No major label needed to go worldwide.
Artists like Omah Lay and Ayra Starr built traction this way—releasing songs that just blew up on TikTok without waiting for a traditional label deal.
This is the music business with freedom. More control means more money and quicker access to fans. But it also means more work and backend knowledge.
Also Read: How to become a lecturer
9. International collabs & global tours
When a Nigerian artist looks to collab with Drake, Selena Gomez, or Ed Sheeran, it is for more than just vibes — it is business.
The international features take the artist to new audiences. More streams, more YouTube views, more show invites, and more dollars!
Wizkid’s “Essence” with Tems was on fire post Justin Bieber remix; Burna Boy won his Grammy and the world’s paid tours and festival headliner gates opened; Rema went back into the record books with “Calm Down” alongside Selena Gomez.
Global tours are a gold mine. Even a mere 10-city tour in Europe or across North America rakes in hundreds of thousands of dollars, especially from VIP tickets, merchandise, and rights to live recordings.
10. Social media and digital influence
Social media is not just a platform to connect and have fun, but a money-making machine for popular artists. Influence is currency. If you have the audience, you have influence. And brands are willing to pay for that attention.
That is why artists no longer post just music. They post personality, fashion, lifestyle — all are branding.
Artists with large followings make money through:
- Sponsored posts
- Brand collaborations
- Direct fan donations (via platforms like Patreon or Ko-fi)
- Monetization of content on TikTok and Facebook
- Affiliate marketing (most especially with fashion brands)
11. Local endorsements and political money
Some money does not go public. Some artists get “soft endorsements” from governors, politicians, or traditional rulers. These may include cash gifts, event appearances, or even land offers.
While these are not sustainable over a long time, it is indicative of the value placed on influence in Nigeria. Because an artist can pull a crowd, and that gives them value, politically and commercially.
It also comes with a risk. With political seasons come political endorsements, and endorsing the wrong candidate could mean an artist’s doom. It is a gamble that requires utmost care.
Conclusion
Talent is no longer enough; the music industry today requires structure, management, contracts, and strategy. The thriving Nigerian musicians — Fireboys, Ayra Starrs, Ladipoes, BNXNs — are not just gifted, they are business-savvy.
Aspiring artists are encouraged to begin mapping not solely their sound but their structure. Understand the revenue models. Register your publishing company. Build your fan base. Make intelligent business agreements.
And what about you, the ever-supportive fan? Now you know: every stream, every like, every share, and every ticket purchased is a way that helps fulfill someone’s dream.
Music is business. And Nigerian artists are cashing in.
