Why Spotify pays Nigerian artists 33 times less than in Sweden

In a recent interview with Joey Akan on the Afrobeats Intelligence podcast, Muyiwa Awoniyi, manager of Grammy-winning Nigerian singer Tems, highlighted a stark disparity in Spotify streaming earnings: one million streams in Nigeria generate just $300, while the same streams in Sweden are worth up to $10,000, 3,233.33 percent more.

This gap reveals how geography and different economies shape income in the global music streaming industry. The economic disparity in streaming payouts reveals a real-world impact on Nigerian artists and why some bigger artists backed by major labels choose to tap international audiences.

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Why the gap exists

The disparity stems from Spotify’s territorial payout model, which adjusts earnings based on regional subscription fees and economic conditions. In Nigeria, Spotify charges N1,300 per month (about $0.82), tailored to the local economy. In Sweden, where Spotify is headquartered, the fee is around $10.14.

As a result, Nigerian streams pay about $0.0003 per stream, and in Swedish, streams pay between $0.008 and $0.01 per stream. This model ensures affordability for listeners but significantly reduces per-stream revenue for artists in lower-income regions.

According to Akíntúndé Babátúndé, media expert, on X, this is due to the disparity in purchasing power and economic inequality.

Nigeria’s subscription of $0.82 is a fraction of the $10 charged in the U.S. or Europe. This lower subscription price translates into less revenue per user, which in turn slashes the per-stream payout for artists.

Babátúndé pointed out that the same logic applies to advertising revenue: ads shown to Nigerian users generate far less income than those targeting wealthier markets.

“Even if an artist has 10 million fans in Nigeria,” Babátúndé said, “they could still earn less than someone with just 1 million fans in a high-income country.” He stressed that this is not a reflection of musical quality but rather the economic reality of the audience, whose limited financial power restricts their ability to support artists through subscriptions, data purchases, or live events.

However, not everyone agrees with Babátúndé’s framing. In a reply on X, @damascots2014 wrote, “Why does [Awoniyi] think Nigerians should know these?”

“Tems is getting 1 million in Sweden today, because Nigerians in Nigeria and the diaspora consume her music. It is a big joke to think it is a white audience. You get streams in Sweden because you blew amongst Nigerians.”

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This counterpoint challenges the idea that success in high-paying regions like Sweden stems solely from local listeners or economic structures. Instead, @damascots2014 emphasises the critical role of the Nigerian diaspora, suggesting that their consumption drives streaming numbers in these markets.

This perspective sheds light on a key factor in the global rise of Nigerian artists: the influence of Nigerian immigration.

As Nigerians move to countries like Sweden, the Netherlands, the U.S., and the U.K., they bring their love for Afrobeats with them, significantly boosting artists’ sales and streams in these regions. The diaspora supports artists by streaming their music on platforms like Spotify, attending concerts, and promoting their work within their new communities. This active engagement increases streaming numbers in higher-paying markets, where per-stream rates are much more lucrative than in Nigeria.

Impact on Nigerian artists

For Nigerian artists, the low payouts pose a serious hurdle. Awoniyi’s assessment, “If my IP is anchored to a region where one million streams is $300, I am cooked,” captured the financial strain.

While streaming revenue alone is insufficient, artists may need to rely on alternative income like live performances, merchandise, or brand deals.

Babátúndé urged musicians, influencers, and entertainers to see themselves as stakeholders in a broader fight for economic justice and improved quality of life in Nigeria. “The growth of the creative industry depends on people being able to afford subscriptions, buy data, attend shows, and support their favourite artists without breaking the bank,” he said.

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For the Nigerian music industry to thrive, he insists, there must be a push for better governance, a stronger economy, and greater financial inclusion—conditions that would enable the average person to fully participate in the digital economy. “If your fans stay broke, so do you,” he warns, framing advocacy not just as activism but as self-interest for artists whose livelihoods depend on their audience’s financial health.

Despite these challenges, Nigeria’s music scene is thriving. Jocelyne Muhutu-Remy, Managing Director for Spotify Africa, during Spotify’s 2024 Loud & Clear, revealed that Spotify paid Nigerian artists over N58 billion in royalties for 2024. This figure, more than double the amount paid in 2023 and five times greater than in 2022.

This issue of regional payout gap extends beyond Nigeria. Artists in lower-income regions, especially in Africa, face an uphill battle to fund their careers, potentially stifling diversity in music.