Spotify has just released its latest Loud & Clear report for 2024, continuing its mission to bring transparency to artist earnings and shed light on the evolving streaming economy.

For those unfamiliar, Loud & Clear is Spotify’s annual deep dive into how royalties flow, market trends, and the financial impact of streaming on artists. Since its launch in 2021, the initiative has helped demystify the complexities of music monetization and provided data-driven insights into the industry.

Last year’s report revealed that Nigerian artists earned ₦25 billion in royalties, with their South African counterparts generating 256 million Rands. Now, in 2024, Spotify’s latest figures show that Nigerian artists have more than doubled their revenue, bringing in ₦58 billion—a 5x increase from 2022’s ₦11 billion.

Spotify also highlighted that the number of Nigerian artists earning at least ₦10 million in royalties has doubled since 2023 and tripled compared to 2022, signaling an upward trajectory for the industry.

“Our commitment remains strong in ensuring Nigerian artists can monetize their craft while maintaining transparency with both artists and industry stakeholders,” said Jocelyne Muhutu-Remy, Managing Director of Spotify Sub-Saharan Africa. “The global rise of Nigerian music is a testament to its talent, and we’re proud to support that continued momentum.”

A substantial portion of this ₦58 billion revenue stems from international streaming as Nigerian artists continue to expand their global footprint. In 2024 alone:

• Nigerian artists were discovered by first-time listeners over 1 billion times on Spotify.
• More than 1,900 Nigerian artists were added to editorial playlists, marking a 33% increase from 2023.

A glance at the year-over-year earnings growth paints an impressive picture:

• 2022: ₦11 billion
• 2023: ₦25 billion (+127% increase)
• 2024: ₦58 billion (+132% increase)

At first glance, the numbers suggest an explosion in revenue for Nigerian artists. However, when adjusted for exchange rate fluctuations and Spotify’s USD-based payouts, the actual increase in dollar-denominated revenue tells a different story:

• 2022: $26M (₦11B ÷ 423)
• 2023: $39.5M (₦25B ÷ 633) (~52% increase)
• 2024: $39.6M (₦58B ÷ 1,465) (~0.25% increase)

This suggests that while revenue appears to be skyrocketing in Naira terms, it isn’t necessarily reflecting the same level of growth in real-dollar earnings due to currency depreciation.

The Inflation Factor: Real vs. Nominal Growth

If you skipped your Economics 101 class, here’s the key takeaway: This is a clear example of Inflationary Growth vs. Real Growth.

While Naira-based revenue has more than doubled in the past two years, the actual USD earnings have stagnated, growing by 52% in 2023 but remaining flat in 2024. Since Spotify pays artists in USD, the devaluation of the Naira has made earnings appear significantly higher than they actually are in real terms.

A Spotify spokesperson clarified:
“We do not adjust for inflation to maintain consistency in how we report revenue at both global and local levels. That said, we are pleased to see continued payout growth for Nigerian artists, particularly as their global audience expands.”

Despite the currency distortion in revenue growth, the global demand for Afrobeats, Alté, and other Nigerian genres continues to rise.

In 2024:

• Over 1.1 million hours of Nigerian music were streamed worldwide.
• 250 million user-created playlists featured Nigerian artists.
• Music exports from Nigeria have grown by 49% over the past three years.

In a volatile economy, relying solely on local currency-based revenue growth can be misleading. Instead, Nigerian artists should focus on leveraging their global reach and increased visibility into stronger dollar-denominated earnings, ensuring that their financial success isn’t just tied to currency fluctuations.

In total, Spotify distributed $10 billion in royalties in 2024, with Nigerian artists accounting for about 0.4% of that sum. Since its inception, the platform has paid out approximately $60 billion to the global music industry, with music publishing royalties surpassing $4.5 billion in the past two years alone.

Final Thoughts: Beyond the Numbers

At the Spotify Loud & Clear Breakfast held at Sky Restaurant, Eko Hotel, industry executives gathered to dissect the report and what it means for the future of African music. Phiona Okumu, Spotify’s Head of Music for Africa, shared valuable insights on the importance of sustainable growth for artists, rather than relying solely on surface-level numbers.

While it’s clear that Nigerian music’s influence is stronger than ever, the key focus should now be on converting global recognition into lasting financial stability. Streaming success is just one piece of the puzzle—leveraging international partnerships, alternative revenue streams, and fan engagement will be crucial for long-term sustainability.

The numbers don’t lie—Nigerian music is booming. But the real challenge is ensuring that its economic impact keeps pace with its global dominance.