uncharted waters: afrobeats is going global, but can the business behind it keep it up?

Afrobeats. Source: Amped

In a country where music is often more than entertainment—where it’s survival, escape, expression, and power—Nigeria’s Afrobeats has become a cultural export of historic proportions. But while artists top global charts and sell out arenas from Accra to Amsterdam, a new report reveals a jarring truth: the business behind the sound is lagging far behind the talent.

Released by TAG Africa, Uncharted Waters: Nigeria’s Afrobeats Economy offers a deep dive into the trillion-naira question: can the infrastructure, policy, and economics of Afrobeats catch up to the global fame it's generating?

The short answer? Not yet.

The Sound is Global, But the System is Broken

Afrobeats is now a global force. With acts like Burna Boy headlining stadiums, Tems co-writing Grammy-winning hits, and Davido securing brand deals that rival those of international pop stars, the genre has transcended borders. But beneath the streaming stats and sold-out tours lies a fragile ecosystem.

According to TAG, the Nigerian music industry remains “largely informal, undercapitalized, and structurally disconnected” from the massive cultural impact it’s generating. That means:

Royalties are poorly tracked and distributed.

Copyright laws are barely enforced.

There’s a lack of physical venues and music infrastructure.

Many artists operate without proper contracts, business literacy, or long-term support.

In essence, the sound has outgrown its skeleton. And unless major changes happen soon, the current model could collapse under its own weight.

Follow the Money: Lagos Nightlife and the ‘Hennessy Test’

One of the most compelling sections of the report focuses not just on the artists, but on the ecosystem around them—particularly Lagos nightlife. Clubs, lounges, pop-up shows, and concerts are where music is test-driven, audience-tested, and consumed with the kind of intensity that only Nigerians can bring.

TAG introduces something they call the “Hennessy Test,” a case study highlighting average consumer spend in Lagos nightclubs. Here’s what it found:

₦617,000 ($402) per club table. Per night.

Now multiply that by hundreds of clubs, every weekend, across Nigeria’s major cities. You’re looking at an under-documented, under-leveraged economy that stretches into fashion, luxury goods, hospitality, logistics, and even real estate. All of it fueled—knowingly or unknowingly—by Afrobeats.

Yet none of this spending is structured or taxed in ways that return meaningful income to artists or the broader creative economy. There's no standardization, no protections, and no systemic reinvestment.

Castles on Sand

“Afrobeats isn’t just music, it’s a viable economy,” says Fiyin Ogunlesi, Managing Principal at TAG. But he warns that we are “building castles on sand.”

What does that mean?

It means we’re stacking global wins on a foundation that’s brittle. And as anyone who’s followed Nigeria’s music history knows—remember the crash of the Alaba era, the struggles of Mo’Hits, or the copyright wars of PMAN—when the structure collapses, it’s the creators that get crushed first.

What Needs to Happen?

TAG’s report doesn’t just spotlight problems—it also offers a call to action. And it’s refreshingly practical:

Financial Tools: Artists need access to banking, investment, and credit systems tailored to the irregular income flows of creative work.

IP Enforcement: Copyright laws must be digitized, enforced, and standardized across platforms, both local and global.

Creative Infrastructure: Venues, studios, incubators, and education for music business and law must be prioritized.

Investment, Not Extraction: Global labels and tech platforms must reinvest profits back into Nigerian music ecosystems—not just siphon value.

Most of all, there needs to be collaboration—between policymakers, investors, community leaders, and creatives themselves. This isn’t a problem artists can solve alone.

So, Is the Business Behind Afrobeats Keeping Up?

Not yet. But it can.

The business isn’t keeping up because it was never fully built to begin with. The foundation is still being laid. And in many ways, Uncharted Waters is the blueprint we’ve been waiting for.

It’s a reminder that while Afrobeats may be Nigeria’s biggest cultural export, its sustainability depends on how we value—not just the stars—but the systems that support them.

And if Nigeria wants to lead the world with its sound, it must first lead itself with its structure.

To read the full report, download it here