INDUSTRY DYNAMICS

The Nigerian music industry has undergone a dramatic transformation in the digital era (1999– 2024), fueled by technological advancements, the rise of streaming platforms, and the global popularity of Afrobeats. While these developments have created unprecedented opportunities for artists and record labels, they have also intensified disputes over contractual fairness, revenue sharing, and intellectual property rights. This study critically examines the legal realities and industry dynamics of Nigerian recording contracts, focusing on the pre-contractual negotiation process, transparency in artist-label relationships, and the effectiveness of existing legal and institutional frameworks in ensuring fairness. The research explores key issues such as information asymmetry, bargaining power imbalances, and the opaque nature of royalty structures, which often leave artists vulnerable to exploitative agreements. It evaluates the role of Nigerian contract law, the Copyright Act 2022, the Companies and Allied Matters Act (CAMA) 2020, and industry institutions like the Nigerian Copyright Commission (NCC) and Collective Management Organizations (CMOs) in regulating contractual fairness. Case law and industry disputes, including landmark cases like King Sunny Ade v. African Songs Ltd and Kizz Daniel v. G-Worldwide Entertainment, are analyzed to assess the legal protections available to artists and labels. Methodologically, this study adopts a doctrinal legal approach, relying on statutory analysis, case law review, and comparative examination of international transparency standards. The findings reveal significant gaps in Nigeria’s legal and institutional framework, particularly in contract enforcement, financial accountability, and regulatory oversight. While existing laws provide theoretical protections, weak enforcement mechanisms and a lack of industry-wide contract transparency allow exploitative practices to persist. This research recommends the adoption of standardized contract clauses, mandatory financial disclosures, stronger oversight of CMOs, and the integration of blockchain technology for royalty tracking to enhance transparency. Strengthening artist education, collective bargaining frameworks, and dispute resolution mechanisms will also be essential in fostering a more balanced and sustainable music industry. By addressing these legal and industry gaps, Nigeria can move towards a more equitable system where both artists and record labels thrive.