Yesterday, social media went into a frenzy following an announcement by Music Business World Wide that Universal Music Group (UMG) acquired a majority stake in Mavin Global (Mavin), a Lagos-based music and entertainment powerhouse.
Mavin Records, the label arm of Mavin Global, has been instrumental in shaping the global impact of afropop, the genre that has taken the world by storm. The label is renowned for its knack for discovering and developing groundbreaking talents, from its original stars like Wande Coal and Tiwa Savage to its newer sensations like Ayra Starr, Crayon, Rema, and Ladipoe.
With this new investment by UMG, Mavin Global is set to expand its roster, catalog, and partnerships across Africa and beyond. This sort of funding is not new to Mavin Global. In 2019, the company secured an undisclosed amount from Kupanda Holdings, a joint venture between pan-African investment firm Kupanda Capital and TPG Growth, a major investor in prominent companies like Spotify, CAA, Uber, and Airbnb.
UMG significantly influences the global music industry. With a robust roster ranging from contemporary megastars like Taylor Swift, Snoop Dogg, Drake, to iconic artists like The Beatles, Michael Jackson, Bob Marley, Tupac Shakur and more. UMG’s strategic approach not only boosts these artists’ commercial success but also shapes the entire music business landscape.
A partnership with UMG could offer Mavin Global unprecedented access to resources, opportunities, and markets.
But what does this deal mean for the Nigerian music scene? Here are three key takeaways:
1. GLOBAL RECOGNITION: BREAKING NEW GROUND
The recent boost to the Nigerian music scene isn't just a headline; it's a testament to the industry's strength and potential. Surprisingly, this time, the spotlight isn't on tech or reverse-cybersecurity – it's on the beats and melodies of Nigeria.
In the past, the music business took heat for its dubious funding sources. In October 14, 2008, the late former US Secretary of State, Colin Powell hit the stage in London with Nigerian singer Olu Maintain, grooving to the infectious Yahooze. Just two days later, The Guardian published a piece criticizing Powell for not tuning into the lyrics: "But it doesn't look as if the former US secretary of state paid too much attention to the lyrics, or he might have discovered that the Nigerian hit is a celebration of that country's most infamous export, advance-fee email fraud (sometimes called 419 fraud, after the relevant section of the Nigerian penal code)."
Despite Olu Maintain’s insistence that the song isn’t about reverse cybersecurity,
Art, they say, imitates reality, and given Nigeria's global notoriety for scams, it's understandable why shedding light on our prevalent fraud problem remains a sensitive topic for Nigerians
Yet, beyond the shadow of stigma, Nigerian music has rewritten the narrative. For every “Yahooze,” there are multiple hit and uplifting records like D’Banj’s “Oliver Twist,” Wizkid’s “Ojuelegba,” and Burna Boy’s “Ye” that dominate the airwaves, thrusting Afro-pop into the limelight. These tracks prove that our musical landscape transcends stereotypes.
While the stigma still lingers, Nigeria’s music industry has amassed a legacy of success – from multiple Grammy awards to surpassing billions of streams and sold-out concert venues.
This week, Media outlets are buzzing with stories about UMG's majority stake acquisition in Mavin, a Nigerian music label. Media are trying to get quotes as they want to know what the next steps are.
Mavin’s artistes, including Rema and Ayra Starr, have achieved international acclaim. Rema’s hit single “Calm Down” reached #3 on the U.S. Billboard Hot 100 chart, surpassing 1 billion Spotify streams.
This breakthrough isn't just a business deal; it's a spotlight on the industry's evolution. Our music is erasing the negative stories, captivating audiences one tune at a time.
2. INDUSTRY EVOLUTION: MAJOR PLAYERS TAKE NOTICE
Between 2018 and now, global music powerhouses such as Universal Music Group, Sony, Warner, OneRPM, Empire, AWAL, Virgin Music, Def Jam, Orchard, and Believe have strategically established dedicated teams in Nigeria
Their goal? To tap into the local market and gain a substantial share. These strategic moves demonstrate confidence in our music ecosystem.
Rema, hit single Calm Down [featuring Selena Gomez] rose to No.3 on the U.S. Billboard Hot 100 chart in a breakthrough for the genre. The track has gone on to be one of the biggest Afrobeats songs of all time, becoming the first African artist-led track to surpass 1 billion Spotify streams, sold out O2 Arena concert, embarked on sold out tours.
Major labels like Warner, Sony, and EMPIRE have found success in signing Nigerian talents, including Pheelz, Burna Boy, Omah Lay, Joeboy, Davido, Tems, Wizkid, Fireboy, Asake and more recently Republic signing of Ayra Starr.
According to the International Federation of the Phonographic Industry (IFPI), in 2023, Africa represented the fastest-growing continent for recorded music consumption, with Sub-Saharan Africa experiencing a remarkable 34.7% year-on-year growth—the only region surpassing 30% growth that year.
Warner, Def Jam, Empire, and Virgin have all partnered up with Chocolate City, Native Records, YBNL, and Dapper to help foster collaboration, nurture emerging talents, increase job opportunities and address potential challenges associated with increased international involvement.
The signings all indicate that the major players are looking for the diamonds in the rough.
3. EMPOWERMENT
Each step forward—each successful leap—adds to our collective achievement. Nigerian artists are now headlining major international festivals - Wizkid, collaborating with global icons - Fireboy X Ed Sheeran, selling out stadiums - Burna Boy, arenas - Davido, Asake, Rema, leaving an indelible mark.
This progress also translates into increased job opportunities across the live sector and recording sector, creating more roles for music executives and offering an opportunity to groom future industry leaders.
The Music Business Academy (MBA), a platform established in 2020, focuses on training and empowering professionals in Africa’s entertainment industry. Recently, it has experienced substantial growth in attendance and gained support from the Orchard
In a press release, UMG highlighted “This mission, according to UMG, is anchored in two initiatives: Mavin’s Artist Academy, which trains new talent in music and performance skills and builds connections within the roster, and their executive leadership program, which seeks to develop the next generation of music industry talent in Africa.”
Notably, in May 2021, Mavin introduced its Mavin future 5 to develop and equip five aspiring industry leaders.
In conclusion, Nigeria's music industry is thriving. Artists are soaring higher, and initiatives are being developed for the next generation. With rising streaming revenues and growing job opportunities, the future of Nigeria's music looks promising.