Universal Music to launch division in Nigeria

Vivendi’s Universal Music Group (UMG) will launch a new division in Nigeria as part of efforts by the world’s largest music label to expand into Africa’s most populous nation and the wider region.

The global music entertainment group said on Tuesday that its new strategic division, Universal Music Nigeria, will operate from Nigeria’s commercial capital of Lagos.

Nigerian music, much like its Nollywood film industry, is popular across much of Africa. Nigerian music artists have popularised the Afrobeat musical genre and gone on to sign record deals, sell out concerts and work with international artists to increase the global reach of African music.

Music revenue in Nigeria, mostly derived from sales of mobile phone ringtones, grew 9% in 2016 year on year to reach $39m and is expected to increase to $73m by 2021, auditing firm PwC said in 2017.

Sipho Dlamini, the MD of Universal Music SA and subSaharan Africa, said that the Nigeria division would focus on developing artists and musicians from West African countries, particularly Nigeria, Ghana and Gambia.

“Our Nigeria team will support, nurture and help develop artists, while creating opportunities for new talent from the region to reach the widest possible audience,” said Dlamini.

UMG said the new division would work alongside the label’s existing operations in Ivory Coast and Morocco.

Universal Music Nigeria also plans to open a recording studio in Lagos, which would be the label’s second fully purposed studio in Africa alongside another in Johannesburg.

Nigeria’s music industry faces an array of challenges ranging from a lack of proper legal structures to piracy and difficulties in distributing and monetising content.

The country’s arts, entertainment and recreation sector contributed 0.29% to real GDP in the first quarter of this year, the statistics office said.