One of the world’s largest music labels, Universal Music Group (UMG) has set its eyes on Nigeria as the next destination for it’s a new branch as it seeks to expand into West Africa.
The music entertainment group said on Tuesday its new strategic division, Universal Music Nigeria, will operate from Nigeria’s commercial capital Lagos.
West Africa, especially Nigeria is known for its booming and ever-expanding music and film industry that has crossed borders into other parts of Africa.
‘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’, says UMG.
In Nigeria alone, the music industry which has contributed to over $39 million in revenue grew to 9% in 2016 and has continued to blossom year after year.
According to auditing firm Pricewaterhouse Coopers (PwC) last year, revenue from the Nigerian music industry is expected to rise to $73 million by 2021 which is why it’s a great opportunity for labels like UMG to expand into West Africa.
Sipho Dlamini, Managing Director of Universal Music South Africa and Sub-Saharan Africa said that the Nigeria division will focus on developing artists and musicians from West Africa countries, particularly Nigeria, Ghana and Gambia.
UMG said the new division will work alongside the label’s existing operations in Ivory Coast and Morocco and 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, South Africa.
Nigeria’s music industry faces an array of challenges ranging from the 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 percent to real GDP in the first quarter of this year, the statistics office said.
Author: Allan Bangirana
Allan Bangirana is a freelance writer for Newslibre & Spur Magazine. He is passionate about tech, games and occasionally writes about entertainment, lifestyle and so much more.