Entertainment

QTAG Launches “Uncharted Waters” Report on Nigeria’s Afrobeats Economy

Posted by Gistsnaija. on 23 May, 2025 | under Entertainment
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A newly released report by TAG, a leading independent advisory and investment firm, has shed light on the vast economic potential and current shortcomings of Nigeria’s booming Afrobeats industry Titled “Uncharted Waters : Nigeria’s Afrobeats Economy,” the report delves into the billion-dollar cultural phenomenon and the economic systems struggling to keep pace.

Afrobeats has evolved into one of Nigeria’s most influential global exports. With chart-topping hits, sold-out stadium tours, and billions of streams, Nigerian artists are shaping the global soundscape.

However, despite its international success, the underlying economic framework remains fragmented and underdeveloped. According to TAG’s research, much of the industry operates informally, lacking the investment infrastructure necessary to sustain long-term growth.

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The report highlights critical challenges including inadequate royalty systems, weak enforcement of copyright laws, and limited access to world-class venues. These systemic gaps hinder the ability of artists, producers, and other stakeholders to fully capitalize on the genre’s global appeal.

One unique aspect of the study is its focus on the Lagos nightlife economy, which plays a vital but often overlooked role in the success of Afrobeats. From bustling clubs and lounges to live events across the city, Lagos serves as a launchpad for new sounds and emerging talent.

These nightlife venues don’t just promote music—they also drive significant economic activity across hospitality, fashion, luxury goods, and transportation sectors.

TAG introduces the “TAG Hennessy Test” as part of the report, revealing that the average spending per club table in Lagos reaches ₦617,000 (approximately $402 USD) per night. This figure illustrates the depth of consumer engagement and the economic value generated from Afrobeats beyond digital streams and ticket sales.

Ultimately, “Uncharted Waters” argues that while Afrobeats continues to dominate the cultural landscape, serious structural reforms and financial backing are needed to translate its success into a sustainable economic engine for Nigeria and beyond.

This showcases that Lagos nightlife serves as a powerful barometer shaping trends, with Afrobeats consumption at its core.

“Afrobeats isn’t just music, it’s a viable economy,” said Fiyin Ogunlesi, Managing Principal at TAG. “But we’re still building castles on sand. We can’t continue to export this sound globally without building the structures at home to support and protect the creators, entrepreneurs, and communities behind it. That means better financial tools, stronger IP enforcement, and serious investment in the business of culture.”

Uncharted Waters presents not only an in-depth economic and cultural analysis but also a call to action. TAG urges investors, policymakers, and creative industry players to collaborate in turning Afrobeats from an artistic success story into a sustainable economic force, one that delivers value not just to global labels or tech platforms but to the Nigerian creatives and communities at its core.

The full report is now available for download here – tagafrica.com.ng