Nigeria’s Afrobeats boom at risk without industry reform, experts warn

Nigeria’s booming Afrobeats industry risks losing the economic value of its global success unless the country fixes deep structural problems around ownership, contracts, education and royalties, industry experts have warned.

Speaking at BusinessDay’s Creative Entertainment Summit 2026, at the panel session themed ‘Fixing the system – Transparency, IP, Policy & Structural gaps in the music industry’, experts said the future of the industry depends on building stronger systems that protect creators and ensure value remains within the ecosystem.

Experts agreed that while Afrobeats has achieved global recognition, the next phase of growth will depend on building transparent ownership structures, stronger contracts, better data systems and policies that allow creators and the Nigerian economy to benefit from the industry’s global influence.

Joey Akan, creator of Afrobeats Intelligence and The Joey Akan Experience, said the biggest challenge facing the music industry is its structure, arguing that the ecosystem requires a complete overhaul.

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“The entire structure is what we have to fix. The entire music industry is a game of waiting. Patience is the start of it,” Akan said.

He also noted that a major barrier remains the education gap within the industry, adding that the media and stakeholders must better understand how the business works to effectively hold the ecosystem accountable.

“You can’t hold your industry accountable if you don’t know what is going on. Access is a big problem and structure is a personal conversation on how the ecosystem is built,” he said.

Araromi Afolabi, managing partner at Trudo Legal, identified poor contract structures and lack of documentation as some of the biggest threats to ownership in the creative industry.

He said many creators enter agreements without fully understanding their rights, making education around contracts and intellectual property critical.

“The foundation of bad contracts or no contract at all forms the basis of the problem. It is important to know what you are and education is important because when we talk about ownership, you need to know what is in your contract and what you are signing to third parties,” Afolabi said.

He stated that while reforms and regulations are being developed, transforming the industry will require time and consistent implementation.

Ifeyinwa Anyadiegwu, vice president and head of legal and business affairs at Chocolate City Group, also stressed that education remains the first step toward creating a sustainable music economy.

Read also: Data, structure, legal framework key to unlocking Nigeria’s creative economy growth – Experts

“Before we understand the legal framework, we should understand the education around the music business,” she said.

According to Anyadiegwu, creators must understand revenue structures, ownership percentages and the commercial value of their work.

“Documentation for the business is important so we know who owns what. We need to build documents that are reasonable enough to take to court, understanding whether you own 10 percent, 5 percent or 2 percent,” she added.

She noted that while the label system has helped drive growth, there are still challenges within the industry that require better understanding from policymakers and regulators.

Michael Odiong, CEO of Premier Records, said Nigeria’s position as a global exporter of Afrobeats has not translated into enough economic returns for the country.

He explained that historically, music was treated as an obligation rather than a structured business, resulting in weak royalty systems.

“Before the 80s, music was seen as something that had to go, but you had an obligation to see royalties were paid. We are exporters of Afrobeats, but as a country we don’t make a dime,” Odiong stated.