Nigeria’s Music Industry Set for Substantial Growth
Nigeria’s music sector is expected to generate revenues of N901 billion in 2024, with a projected valuation of $1 billion by 2033. Despite this promising outlook, independent artists continue to struggle with slim margins resulting from traditional streaming platforms. As a result, an increasing number of industry voices are advocating for direct-to-consumer (D2C) models as a strategic avenue for improving revenue and capturing more value locally.
CREAM Leads the Charge in D2C Music Sales
The CREAM platform (Creative Reality Entertainment Arts & Music), spearheaded by renowned artist D’banj, stands out as a significant local initiative promoting this shift. With a subscriber base surpassing 7 million, CREAM allows users to purchase music directly through mobile data, USSD codes, and bank integrations. The platform offers substantial financial incentives, promising artists up to 70 million naira for one million song downloads. In 2025, Afreximbank, via its CANEX Creations Inc. division, formed a strategic equity partnership with CREAM to bolster talent discovery, content monetization, and expansion across the African continent.
Debate on Ownership and Revenue Distribution
The growing focus on D2C models ties into larger discussions about ownership within the industry. Afrobeats journalist Joey Akan recently analyzed whether CREAM can significantly address the low streaming payments experienced by many Nigerian artists. He highlighted the sector’s rapid growth but underscored concerns regarding the ownership of future revenue. As Akan noted, the Nigerian music industry generated N901 billion last year and is on track to reach $1 billion by 2033. The pivotal question remains: who will benefit from this growth—local Nigerian investors or foreign entities?
The Challenges Facing Independent Artists
Adekunle Shorinola from Durozy International emphasized that the D2C model is vitally important for independent artists who have long depended on international streaming services. He explained that D2C platforms allow artists to connect directly with their fans, maintain ownership of their data, and explore additional revenue streams such as subscriptions and exclusive content. This, he noted, could lead to increased transparency surrounding revenue—a pressing issue for many creatives.
The Role of Institutional Support and Investment
Despite the critical need for local institutional support, resources remain limited. While government initiatives like the Creative Industry Financing Initiative exist, few artists have taken advantage of them, largely due to stringent requirements from traditional banks. Consequently, much of the capital flowing into Nigerian music is derived from foreign distributors and platforms. Some local entrepreneurs are stepping in to provide angel funding, but the majority of substantial transactions involve external partners, as seen with Mavin Records’ equity deal with Kupanda Holdings, which eventually led to a majority stake transfer to Universal Music Group.
D2C Models Offer New Revenue Opportunities
In this landscape, the D2C model aims to reduce the dependency on foreign streaming royalties by enabling artists to sell their music directly to their audiences. International case studies provide a glimpse of the potential benefits. Independent hip-hop artist Mick Jenkins, for example, adopted a D2C-first strategy with the EVEN platform, resulting in an 88% increase in total revenue from $176,947 in 2024 to $332,277 in 2025. His experience underscores how D2C sales can substantially augment an artist’s earnings while maintaining visibility on major streaming platforms.
Future Prospects of D2C in Nigeria
While experts believe that D2C will not fully replace traditional streaming platforms, they assert that it offers a complementary approach that emphasizes real income, particularly for independent artists. As the Nigerian music market evolves, platforms like CREAM could facilitate easier access for artists and fans alike, especially in regions where mobile data is critical. Nonetheless, challenges remain, including building user trust and ensuring consistent adoption among an audience accustomed to free consumption. Ultimately, as Nigerian artists seek to harness more of the industry’s projected $1 billion in revenue, D2C strategies are becoming an indispensable component of the evolving music business landscape.
