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The short answer
Royalties from Nigeria reach UK-based musicians through collecting societies, labels, publishers and distributors. In Nigeria, the Musical Copyright Society Nigeria (MCSN) is the only collective management organisation approved for musical works and sound recordings, according to a July 2026 analysis; COSON's licence has not been renewed since 2019. Nigerian payers may withhold tax, which the UK–Nigeria treaty caps at 12.5% on royalties, and the UK gives credit for it.
Afrobeats is listened to everywhere, and many of the producers, writers and artists behind it live in London, Manchester and Birmingham. When a song is played on Nigerian radio, in clubs, in films or on streaming platforms, money is due to the rights holders. How much of it reaches you in the UK depends on which rights you own, who collects them in Nigeria, and how the tax is handled on the way.
Which rights earn what
| Right | Earned when | Usually collected by |
|---|---|---|
| Performing and broadcast right in the composition | Song played on radio, TV, in venues, streamed | Collecting society, then your home society or publisher |
| Mechanical right in the composition | Song reproduced, including in streams and downloads | Publisher or mechanical collection body |
| Master recording | Recording streamed, sold or licensed | Label or distributor |
| Neighbouring rights | Recording broadcast or played in public | Society for performers and record makers |
| Sync | Music used in film, TV or adverts | Publisher and label, paid directly by the producer |
Streaming income from global platforms usually reaches you through your distributor or label, not through a Nigerian society. The Nigerian collecting bodies matter most for broadcast, public performance and local licensing.
Collecting societies in Nigeria
Nigeria's Copyright Commission (NCC) approves collective management organisations (CMOs). A guest post on the IPKat blog by Seun Lari-Williams (30 July 2026) reports that:
- MCSN is "the sole approved CMO for musical works and sound recordings in Nigeria";
- COSON's licence was suspended after a 2017 dispute and has not been renewed since 2019;
- on 10 June 2026 the House of Representatives directed its Committee on Justice to investigate alleged irregularities in copyright administration, with no findings published at the time;
- a ₦1.2 billion private copy levy allocation to MCSN was challenged in the Federal High Court and the funds were reportedly frozen.
For a UK-based writer or producer, the practical point is to know who is licensed to collect for your works in Nigeria and to make sure your registrations, splits and identifiers are correct with your home society and publisher, so that money collected there can be matched to you. Ask your UK society or publisher how Nigerian collections reach you; this guide does not describe any particular society's arrangements.
Tax on Nigerian royalties
In Nigeria
Under the 2024 withholding regulations, as summarised by PwC, royalties paid to non-resident individuals attract 5% withholding tax and to companies 10%. The UK–Nigeria treaty (Article 12) caps Nigerian tax on royalties paid to a UK resident at 12.5% of the gross. The treaty's definition covers copyright in literary, artistic and scientific works.
In the UK
GOV.UK says UK residents normally pay UK tax on foreign income. Whether your royalties are trading income of your music business or other income depends on your circumstances; ask an accountant. Either way, HMRC helpsheet HS263 lets you claim credit for Nigerian tax up to the UK tax on the same income. Foreign income usually goes on the SA106 pages; see filling in SA106.
A worked example
Example only. Dami, a UK-resident producer, is paid a £2,000 royalty by a Nigerian label for a licensed beat. The label deducts 5% withholding tax (£100) and pays £1,900. Dami reports £2,000 gross on his UK return and claims £100 foreign tax credit, limited to the UK tax due on that £2,000. He keeps the label's WHT receipt and the royalty statement.
Contract points with Nigerian labels and publishers
- Name the territory and the rights licensed, and the term.
- State the royalty rate or split and the accounting period, for example statements every six months.
- Say whether payments are gross or net of Nigerian withholding tax, and that WHT receipts will be supplied.
- Name the currency of payment and who bears conversion and transfer costs.
- Give you a right to audit statements.
Under section 30(3) of Nigeria's Copyright Act 2022, an assignment or exclusive licence has no effect unless it is in writing, so do not rely on verbal deals with Nigerian partners (see written IP assignments).
What to check first
- Are your works and recordings registered with your home society and publisher, with correct splits?
- Does each Nigerian label or publisher contract say whether amounts are gross or net of tax?
- Do you receive WHT receipts for Nigerian payments?
- Do your royalty statements show the territory, so Nigerian income can be identified?
Related: producing Afrobeats from the UK and Nigerian royalties and registering with PRS for Music.
Where Pryme fits
Nigerian labels and promoters often pay in naira. A Pryme Business Account can receive naira to local details and hold it with pounds and dollars, and verifiable statements made with VerifyDoc.ai give you a record a manager or accountant can check is unaltered. See business accounts.
Questions people ask
Which collecting society is approved in Nigeria for music?
According to a July 2026 IPKat analysis, MCSN is the only CMO approved by the Nigerian Copyright Commission for musical works and sound recordings. COSON's licence has not been renewed since 2019.
Is tax deducted from Nigerian royalties paid to me in the UK?
Often. Under the 2024 regulations, PwC's summary gives 5% WHT on royalties paid to non-resident individuals and 10% to companies. The treaty caps it at 12.5%.
Do I pay UK tax on royalties from Nigeria?
Yes, if you are UK resident. You can claim credit for Nigerian tax, limited to the UK tax on the same income.
How do streaming royalties from Nigeria reach me?
Usually through your distributor or label, not a Nigerian society. Nigerian societies mainly matter for broadcast and public performance.
Sources
- IPKat guest post (Seun Lari-Williams): Nigeria's copyright licensing system comes under parliamentary scrutiny (30 Jul 2026) · accessed Oct 2026
- PwC Nigeria: highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · accessed Oct 2026
- UK–Nigeria Double Taxation Convention 1987 (GOV.UK PDF) · accessed Oct 2026
- GOV.UK: Tax on foreign income (updated 1 Oct 2026) · accessed Oct 2026
- HMRC: Relief for foreign tax paid 2026 (HS263, updated 6 Apr 2026) · accessed Oct 2026
- Mondaq (Esher & Makarios): assignment of intellectual property rights in Nigeria (24 Sep 2024) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.