A research report of the Harvard Law School’s Centre for the Study of African Economies and Societies (CSASE) has revealed a troubling pattern of structural income loss, threatening the future of the industry.

Afrobeats is one of the world’s most influential musical forces as Nigerian artists sell out global arenas, dominate streaming charts, and shape global pop culture.

However, Africa captures only a small fraction of the wealth generated by the Afrobeats booms.

The report which will be unveiled in Lagos on Thursday, showed that in 2023, Afrobeats generated around $100 million globally, but only a tiny fraction of that income reached African creators.

“Despite being one of the fastest-growing music markets, Africa remains the lowest royalty-earning region worldwide. The report from Harvard points out that the gap is not accidental, but structural,” it stated.

Professor Olufunmilayo Arewa, who authored the report, stated that Afrobeats rose to global prominence at a period when the music industry was undergoing major changes.

“Streaming reshaped revenue models, shifting power to three major global labels, namely Universal, Sony, and Warner. Digital platforms such as Spotify, YouTube, and TikTok also increased in their leverage over musicians and artists. These players collectively control distribution, data, royalties, metadata, and intellectual property norms.

“African artists enter this system from a position of disadvantage: weaker bargaining power, limited legal resources, and little control over downstream monetisation. The acquisition of African labels by global majors—most notably Universal’s majority stake in Mavin Records—shows the industry recognises Afrobeats as its new growth engine. But without policy safeguards, these acquisitions risk recreating old extractive patterns: Africa produces the cultural value, while others capture the profit.

“Meanwhile, Nigeria’s highly informal economy complicates revenue collection. Up to two-thirds of the economy operates outside formal systems. For years, informal circulation boosted artist visibility, but it also weakened data systems, copyright protection, and revenue tracking. Even massive cultural events like Detty December, drawing more than a million visitors in 2024, remain under-measured.

“Astrategic session hosted by the Harvard Law School CSASE and Lagos-based Rise Interactive Studios will be taking place in Lagos on Thursday 11th November. The exclusive event will examine strategic responses that industry, policymakers, and creatives themselves can take to help turn the tide of royalty loss.”

The report further said, “Leaders in Artificial Intelligence, such as Dr. Toyosi Akinrele-Ogunsiji, Founder and CEO of Rise Interactive Studios, top artists, senior policymakers, and academics will join the Harvard-trained author of the CSASE Report, Professor Arewa, to discuss the Report’s recommendations. Afrobeats sits at a strategic turning point. Its cultural influence is secure. The economic question is what Africa will choose to do next.

“The CSASE Report, which is the first one written by an African for African creatives, is an important instrument to help guide our way forward. The world is already dancing to African music.

The question is whether Africa will build the systems to profit from it,” the organisers added. (LEADERSHIP, but headline rejigged)

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