$300 for 1M Streams: Why is Nigerian Streaming Payout Low?

Award-winning music producer and musician Sarz is the latest person to remind Nigerians of the low payout for streaming in the country. While appearing on the Afropolitan Podcast, he touched on the streaming payout in Nigeria, which is drastically low compared to countries in Europe and America.

According to Sarz, 1 million Spotify streams from Nigeria earn musicians an equivalent of $300, while similar streams from the United States of America can generate between $3,000 and $5,000, which is ten times more. In 2025, Music Executive and Talent Manager Muyiwa "Donawon" Awoniyi made a similar statement while appearing on the Afrobeats Intelligent Podcast.

This significant difference in payout has led to debate over the contribution of Nigerian to the commercial viability and sustainability of Afrobeats.

This seasonal conversation elicits reactions from observers and stakeholders who hold differing views on the fairness of the payout and how it can be improved. But for many, the question remains, why do Nigerian streams pay that low?

To keep it simple, the payout of platforms such as Spotify, Apple Music, YouTube, and Audiomack is determined by the subscription costs of the user engaging with the content.

In Nigeria, Spotify, for example, charges 1,600 (a little over $1) monthly for its premium individual plan, while YouTube Music and Apple Music charge 1,300 (Just under a $1) for the same plan. In the United States, an individual premium plan costs $13 on Spotify and $11 on Apple Music. In most European countries, Spotify's individual premium plan costs €11.99 per month, while YouTube Music and Apple Music cost €10.99.

READ MORE: Which country pays the most for Spotify subscription? Where does Nigeria rank?

This simply means that if a bulk of your streams is coming from Nigeria, the payout will be commensurate with the value of the subscription. This applies to the US and other European countries as well. With Nigerians paying ten times less to stream music, the payout accruing from such streams is also 10 times less than that of countries with way higher subscription fees.

This accounts for why 1 million Spotify streams in Nigeria is significantly less than the same value in America. It also explains why creators on YouTube whose bulk of streams comes from Nigeria also earn way less than their counterparts in the Western world.

Additionally, some platforms like Spotify and Audiomack have ad-supported freemium tier streaming, which allows listeners to stream for free while listening to ads. The payout from this type of stream also pay lesser than premium streams and the cost of ad placement. Spotify, for example, offers ad-supported streaming globally, and the payout that accrues from such streams would be determined by the cost of placing ads in different countries.

Streaming platforms practice economic parity in their subscription rate, which ensures that the cost of using their platforms is commensurate with the spending power of each country. In Nigeria, economic realities mean that the majority of the citizens can’t afford the disposable income to pay a subscription similar to those in bigger economies in the West.

To operate in a country like Nigeria and capture a decent market share, a streaming platform would have to charge consumers what they can reasonably afford, and that means significantly less than in other thriving economies.

The business model of streaming platforms means that the only way for payout of Nigerian streams to increase is by a commensurate increase in subscription costs.

In the past two years, both Apple Music and Spotify have had a slight upward review of their prices from 900 and 1000 to 1,300 to 1,600 naira. However, the inflation rate and weakened naira haven’t allowed this price increase to reflect in payout.

So far, the low payout of Nigerian streams has led to questions over the country’s modest economic contributions to its music industry, which has, in the past decade, enjoyed an international commercial resurgence, courtesy of the Afrobeats to the world movement. In 2025, one of the country’s biggest stars, Burna Boy, said that topping the Nigerian charts isn’t worth celebrating, citing the low payout as a reason why artists should look beyond the country.

In an ecosystem that’s largely funded and controlled by international investors, Nigeria’s little contribution to the Afrobeats global economy is a matter of concern. However, there are some positives that the country’s massive young population and big diaspora population remain an asset that will drive and sustain investment.

For example, the 2024 Luminate shows that 60% of the streams coming from Nigeria go to Nigerian artists and songs, which is more than any other country in Africa and the Middle East. This increase in streaming numbers means potentially more revenue. Also, the potential of economic gains in the near future could lead to an upward review in subscription cost that would also increase payout.

This writer has also suggested that streaming platforms can consider a subscription model that leverages Nigeria’s economic hubs like Lagos, Abuja, and Port Harcourt, where users here could pay slightly more than others in the rest of the country. Since a tangible portion of Nigerian streams comes from these cities, this could mean a slight increase in payout.

At any rate, the reality is that Nigerian streams pay little and are almost immaterial to the earnings of homegrown stars who have found a global audience.

However, what must also be appreciated in all of this is that whatever Nigerians lack in economic contributions, they make up for in soft power, energetic amplification, unlimited creative inspiration, and a thriving diaspora community.