Streaming Platforms And Royalty Distribution In Nigeria: The New Frontier Of Copyright Enforcement

The rise of streaming platforms such as Spotify, Boomplay, Audiomack, and Apple Music has changed how Nigerians access and enjoy music. These platforms have created opportunities for artists to reach global audiences, but they have also raised new legal and financial challenges around how royalties are shared and enforced. The Copyright Act 2022 provides a more detailed and progressive framework for digital music rights, but enforcement and transparency remain ongoing concerns in Nigeria's creative economy.

The Copyright Act 2022 recognises that both the performer and the copyright owner in a sound recording are entitled to equitable remuneration for any public broadcast or communication of that recording. Section 15(1) of the Act states that when a sound recording is used for commercial purposes, such as streaming, the performer and the owner have the right to receive payment. This payment must be made by the person or organisation using the recording, which includes digital streaming platforms. Where the parties cannot agree on the amount of remuneration, the Nigerian Copyright Commission (NCC) is empowered to determine what is fair and reasonable under Section 15(3). Furthermore, Section 15(8) gives performers and owners the right to access "logs, statements and information" about how their works are used or broadcast. This provision is crucial in the streaming context, as it supports transparency in royalty reporting. It ensures that artists are not left in the dark about how often their songs are played or monetised online.

In practice, most artists do not negotiate directly with streaming companies. Instead, royalties are managed through Collective Management Organisations (CMOs), which are regulated under Section 88 of the Act. These CMOs, such as the Copyright Society of Nigeria (COSON) and the Musical Copyright Society of Nigeria (MCSN), are responsible for collecting and distributing royalties to artists, producers, and composers. Section 39 of the Act bars any organisation from collecting royalties unless it is approved by the NCC. This provision was designed to prevent fraud, double collection, and disputes among multiple collecting bodies.

However, in reality, Nigeria's CMO landscape has been troubled by inefficiency, poor record-keeping, and internal disputes. Allegations of non-transparent royalty distribution have plagued COSON and similar bodies for years.¹ Many artists complain that they rarely receive payments reflecting their actual digital streams, while CMOs blame streaming services for underreporting usage data.² This tension highlights the need for stronger oversight and digital tracking systems.

Despite the clarity of Section 15, enforcement remains a weak link. Nigeria's streaming economy is fast-growing but largely under-regulated. Some platforms operate without formal licensing agreements with CMOs, while others rely on outdated blanket licences that do not accurately account for each artist's share. As a result, many creators earn little despite their works generating significant online traffic. A major reason for this challenge is the lack of digital infrastructure to monitor streaming data in real time. The Copyright Act 2022 makes provision for "anti-piracy measures" (Section 49) and the duty to keep records of works reproduced or distributed (Section 48), but compliance is still low. Without strict penalties for non-reporting and non-payment, streaming companies and aggregators can easily avoid or delay their obligations.

Judicial enforcement has also been limited. Nigerian courts have dealt with a few cases specifically on digital royalty disputes, leaving much of the regulation to administrative mechanisms within the NCC. In Musical Copyright Copyright Society of Nigeria/GTE v. Compact Disc Technologies Ltd,^3, the court affirmed the authority of approved CMOs to collect royalties on behalf of artists, but the case did not address modern digital platforms directly. The absence of recent case law means interpretation of digital remuneration remains largely policy-driven.

Globally, copyright law is adapting to the realities of streaming. In the United Kingdom, the Copyright, Designs and Patents Act 1988 grants authors and performers a right to equitable remuneration for the communication of sound recordings, and platforms must submit detailed usage reports.⁴ Similarly, the European Union's Directive on Copyright in the Digital Single Market 2019 mandates greater transparency in royalty accounting by digital platforms.⁵ Nigeria's Copyright Act mirrors these principles in structure but not yet in enforcement. For the Nigerian creative industry to thrive, the NCC must take active steps to operationalise Sections 15 and 88. This includes compelling streaming platforms to submit regular usage data, setting minimum royalty rates, and ensuring CMOs publish transparent annual reports on collections and distributions. There is also an urgent need for digital tracking systems using blockchain or data-led solutions to verify actual song plays. By linking rights management information under Section 51 to automated systems, Nigeria could create a fairer and more efficient royalty ecosystem.

Streaming platforms have opened a new frontier for Nigerian artists, but they have also exposed weaknesses in copyright enforcement and royalty management. The Copyright Act 2022 provides a strong foundation—especially through Sections 15, 48, and 88—but implementation and transparency remain inadequate. Unless the Nigerian Copyright Commission enforces compliance more strictly and modernises digital monitoring, artists will continue to lose revenue despite the global success of their music. Reforming royalty distribution in the streaming era is not only a legal necessity; it is essential for sustaining Nigeria's creative economy and ensuring that creators receive the fair reward promised by law.

Reference

1. Adaugo Ugwu, 'Music Royalty Collection in Nigeria: Laws, Challenges and Solutions' (io, 12 April 2025) https://royalti.io/2025/04/music-royalty-collection-in-nigeria-laws-challenges-and-solutions accessed 18 October 2025.
2. Harlem Solicitors, 'Nigerian Music Copyright Laws: Balancing Artists' Rights with Digital Streaming Services' (Harlem Solicitors, 15 April 2024) https://www.harlemsolicitors.com/2024/04/15/nigerian-music-copyright-laws-balancing-artists-rights-with-digital-streaming-services/ accessed 18 October 2025.
3. (2010) 2 NWLR (Pt. 1179) 482.
4. AbogadosGold, "Understanding Copyright Design and Patent Act of 1988" https://abogadosgold.com/legislation/copyright-design-and-patent-act-1988/ accessed 18 October 2025.
5. European Parliament and Council Directive (EU) 2019/790 on Copyright in the Digital Single Market [2019] OJ L130/92.
6. Copyright Act 2022 (Nigeria), ss 15, 48, 49, 51 and 88.

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