The Nigerian government largely depends on crude export for revenue. Over the years, there is an increasing call on the government to diversify the economy. However, the big question has been, to what? A recent report by the Disruptive Creative Economy Meeting (DCEM) gives a clue to the revenue of the Nigerian music industry—and the figure is staggering.
DCEM consists of a group of professionals (accountants, lawyers, business advisors). These professionals have been conducting research on the Nigerian music industry for the past 18 months. Their goal is to bridge the data gap in the creative industry. Consequently, the details of their research are presented in the recently published ‘Nigerian Recorded Music Industry Report (2015-2020)’. One of the contributory researcher and managing partner of Technolawgical Partners, Fawehinmi Oyinkansola said,
“DCEM is an exciting social entrepreneurship project of Digital Music Commerce and Exchange Limited, positioned to professionally educate the public on the nitty-gritty of the Entertainment business.”
Highlights of the DCEM report
The DCEM report projects that the revenue from the Nigerian music industry could hit $50 million (approx. N18 billion) by 2020. However, the report also projects a spike in the industry in the next three to five years. According to the report, there is a direct relationship between growth in the music industry and the telecommunication industry. A section of the DCEM report read,
“As internet access becomes more pervasive – thereby increasing the proliferation of service providers – competition in service supply, as well as more “bundling”/zero-rating of entertainment products, will result in a decrease in the effective cost of data. This would mean subscribers having more money to spend on entertainment products such as music and video.”
According to the report, streaming and Caller Ring Back Tone/Ringtone (CBRT/RT) services account for 85% and 66% of revenue between 2015 and 2018. The contribution from these sources will likely increase further in the coming years.
The importance of the report
Olumide Mustapha who is also a UK licensed entertainment lawyer explains that the report will be an annual publication. Mustapha explains that the review and update of the data will be on a quarterly basis. According to Mustapha who spearheaded the DCEM report, it has become paramount for the country to have such data. He said,
“Data, or a lack thereof, is one of the biggest criticisms against the Nigerian music industry. Its traditional sources of investment, being for the most part informal and unstructured, have meant that the industry has, for the most part, not been held to the same standards as other industries. However, such informal structures can only take the industry so far.”
If the government has such data across all sectors, it will be easier to make economic diversification plans. Further highlighting the importance of the data, Oyinkansola said,
“For the longest time, we have operated as an industry from a place of floating knowledge about the data or statistics in the industry. The average entertainment practitioner gives you an estimated figure. However, DCEM seeks to change that narrative by ensuring a timely and robust report to service the industry.”