Nigerian Music- A Billion Dollar Industry
Around the world, the entertainment industry is definitely among the dynamic sectors in an economy. It opens new grounds for developing economics to benefit or become a critical part of the world economy. This can be seen in the export of creative products by developing countries with Nigeria at the forefront although Europe has been the big player in the export of creative contents.
Diversification of the economy is not only centered on agriculture or solid minerals alone, but also should include the creative industry which include films, music and theatre. This statement was made by Lai Mohammed, the Nigerian Minister of Information and Culture.
Recalculating the country GDP in 2013, the entertainment industry that was neglected before was included and as a result of this, the GDP increased from $270 Billion to $510 Billion thus becoming the continent’s biggest economy. This is a report by Brookings, a US-based nonprofit public policy. Based on the report also, the rise in the GDP did not reflect in the increase in wealth and due to the recent clash in the price of oil, the main export of the country; economic growth slowed down.
According to PricewaterhouseCoopers (PWC), an international auditing and accounting firm, the sales revenue generated from sale of the Nigerian music was estimated at $56 Million in 2014 and was projected to reach $88 Million in 2019. Also, they discovered that lumped together, the total revenue for the year gotten from art and fashion, music and movies in the country will grow from $4.8 Billion in 2015 to more than $8 Billion in 2019.
According to the report by the Nigerian Bureau of Statistics, the local music sector in the country grew by 8.4% in the first three month of 2016 and 12% in the first quarter of 2017. This rise may be due to the changes in the pattern of music consumption. In the early 2000s, the music pattern was either British or American hit songs but nowadays, Nigerians prefer songs by their local artists to international artistes.
People now prefer listening to songs by local artistes like Davido and Wizkid or Tekno other than songs by foreign artistes. With over 180million people, local artistes now have a huge market to benefit from because no matter the type of music you produce, there is always a market for it and people who love that type of music.
The New Oil
With the revenue generated by creative industry, the country now termed the sector the new oil and the government is ready to explore and exploit it. The government of Nigeria already is giving out incentives to individuals, companies who are investing in the sector with this including a $1 Million venture capital fund which serves as seed money for citizens who are talented, young and interested in starting up a business in the creative industry.
Also, the industry was given an immunity status by the government such that individuals and companies investing in video and television production, motion picture production, music production, distribution, publishing, exhibition and photography are given tax holidays ranging from three to five years. Investment funds including loans backed up by the government are also invoked and this is as a result of the extent the Nigeria creative industry has carried the image of the country to the ends of the world.