TAG, an independent advisory and investment management firm focused on Africa's high-growth sectors, has released a comprehensive report titled "Uncharted Waters: Nigeria's Afrobeats Economy" that examines the economic structures behind Nigeria's globally successful music genre.

The data-driven report highlights a stark contrast between Afrobeats' worldwide cultural success and its underdeveloped economic foundation at home. Despite Nigerian artists dominating global charts, selling out international stadiums, and accumulating billions of streams, the report reveals an ecosystem that remains largely informal and undercapitalized.

According to the findings, the industry faces significant challenges including poor royalty distribution, weak copyright enforcement, insufficient performance venues, and inadequate business infrastructure. These issues have prevented the economic benefits of Afrobeats' global popularity from properly flowing back to its Nigerian creators and stakeholders.

Lagos Nightlife: The Overlooked Economic Engine

The report places special emphasis on Lagos nightlife as a critical but often overlooked driver of the Afrobeats economy. Clubs, lounges, and live events in Lagos not only serve as launching pads for new sounds and emerging artists but also generate significant economic activity across multiple sectors including hospitality, fashion, luxury goods, and urban transportation.

Through what TAG calls the "TAG Hennessy Test," the report revealed that the average club table in Lagos spends approximately ₦617,000 ($402) per night, demonstrating Afrobeats' substantial economic impact beyond music sales and streaming.

"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."

A Call for Collaborative Action

Beyond analysis, "Uncharted Waters" presents a call to action for key stakeholders. The report urges investors, policymakers, and creative industry players to work together to transform Afrobeats from merely an artistic success into a sustainable economic force that benefits Nigerian creatives and communities.

The full report offers detailed insights into the economic structures, challenges, and opportunities within Nigeria's Afrobeats industry and is now available for download on TAG's official website.

Interested readers can access the complete "Uncharted Waters: Nigeria's Afrobeats Economy" report at TAG's official website.