Step into the world of music royalties and record labels. Learn how to avoid common pitfalls and get paid for your art in Nigeria’s music industry.
Have you ever wondered why some of your favorite artists seem to be everywhere: on TV, at concerts, on social media, but still struggle financially? It’s not always about talent or popularity. The issue often lies in how royalties are handled in the Nigerian music industry.
Do you know that some of your favourites probably don’t have direct access to all the money they supposedly make? If you’re pursuing a career in music, or simply just want to be in the know, let’s break down how royalties work, the role of record labels, and how artists can protect their earnings.
🎵 Understanding Music Royalties
Music royalties are payments made to artists, songwriters, and publishers for the use of their work. Naturally, you get paid your royalty directly for this, but if you are signed to a record label, it works in a different way. Simply put, royalties are a thank-you payment for your creative work from someone, e.g., a radio station that uses your work. There are several types of royalties. The most important ones are;
- Mechanical Royalties: Paid to songwriters and publishers for the physical or digital reproduction of their work.
- Performance Royalties: Paid to artists and songwriters for public performances of their work (e.g., live concerts).
- Sync Royalties: Paid to artists and songwriters for the use of their work in a movie, a TV show, or commercials.
- Printed Music Royalties: Paid to publishers for the sale of sheet music and other printed song materials.
Record Labels and Royalties:
Record labels play a significant role in the royalty system, but how do they come into play? Well, making music costs a lot of money, and except your daddy is “Baba Olowo” like Davido, you will need some sort of funding or someone to invest in you. This is the perfect explanation for why upcoming artists tag the likes of Don Jazzy or Olamide in their freestyles. They may have the talent, but they need the funding.
A record label has that resource, usually in abundance, as well as everything you need to make good music; hence, it is a perfect match. Here’s the deal: The label helps the artiste to:
- Record their songs
- Promote the artiste and the song
- Distribute the song
- Manage the artist’s brand and public image
- Provide advance funding
- Manage the rights to the artists’ music, which includes collecting royalties.
In return, the artist signs a contract that gives the record label the right to a percentage of that royalty.
Trouble in paradise
It sounds like a win-win, doesn’t it? It is that exact excitement that pushes artists to sign contracts without reviewing them correctly and in the end, they fall for one of the biggest industry scams: a contract that favours the label, not the artist. For example, a label might offer an artist 10% of net profits but deduct expenses like production costs, marketing, and distribution fees.
Sooner than later, after the initial high wears off, you begin to work night and day in the studio, steadily dropping bars with a work rate that makes you wonder if they are owing rent. That is when questions get asked.
You begin to notice inconsistencies, the label management gets shady and you can not correlate the meagre amounts that enter your account to the number of shows you are performing at. There is also the place of friends who constantly wonder why you’ve blown but are still broke. Nothing new, just another day in the Nigerian music industry. Some of the regular causes of problems include;
- Unfair Contracts: Labels may offer contracts that favor their interests over the artist’s.
- Royalty Rate Disputes: Artists may disagree with the label over royalty rates or payment structures.
- Copyright Infringement: Unauthorized use of an artist’s work can lead to lost royalties and damage their reputation.
- Lack of Transparency: Labels may not provide clear accounting or payment statements, making it difficult for artists to track their royalties.
Case Study: Mercy Chinwo vs. EeZee Conceptz
A notable example of royalty disputes in the Nigerian music industry is the ongoing case between gospel artist Mercy Chinwo and her former label, EeZee Conceptz. Any big fan of Mercy Chinwo will be acquainted with the “EeZee conceptz” phrase that always preempts all her songs.
The Allegations
In 2017, Mercy Chinwo signed a deal with EeZee Conceptz, a gospel record label founded by Ezekiel Onyedikachukwu, known as EeZee Tee. Under the label, she became a household name with hits like “Excess Love,” “Chinedum,” and “Na You Dey Reign.” When her contract expired in 2022, she chose not to renew it.
In January 2025, Mercy Chinwo accused Ezekiel Onyedikachukwu, known as EeZee Tee, of diverting approximately $345,000 in royalties from her digital platforms and events without her knowledge or consent. She also alleged that her original 2017 contract was replaced with a 2019 version without her approval.
The Response
EeZee Conceptz denied the allegations, stating that Mercy Chinwo had received over $625,000 in royalties. The label also claimed that Chinwo breached their contract by failing to deliver agreed-upon albums and withholding funds from events.
Legal Proceedings
The Economic and Financial Crimes Commission (EFCC) initially issued an arrest warrant for EeZee Tee over the alleged fraud. However, the EFCC later withdrew the warrant, and the case is now set for hearing on May 14, 2025.
Tips for Artists to Protect Their Earnings
Record labels are a necessary evil that cannot be boycotted. So, how do you ensure you do not get played?
To avoid falling into similar traps, artists should consider the following steps:
- Understand Your Contract: Carefully review contracts and negotiate fair terms.
- Register Your Work: Register their music with relevant copyright organizations to protect their rights.
- Keep Accurate Records: Track sales, performances, and other revenue streams to ensure accurate royalty payments.
- Seek Professional Advice: Consult with music industry experts, your lawyers, or managers not affiliated with the label to navigate complex contracts and royalties.
Protect your Craft
If anything we hear about the technicalities of making music is true, then it is no child’s play. Remember, beyond your music being your intellectual property, it is also your life’s work that has taken your sweat and blood, probably tears, too. It is essential to protect your rights. Stay smart, stay informed, and do not stop making great music!
