How Performing Rights and Royalties Work in Nigeria
Performing rights are the foundation of income for songwriters and composers. Understand how they work, who qualifies for payment, and how MCSN ensures you get paid every time your music is performed publicly in Nigeria and beyond.
What Are Performing Rights?
Performing rights are the legal rights that give songwriters, composers, and their publishers the ability to control and receive payment whenever their musical compositions are performed publicly. These rights are a core component of copyright law and apply to a wide range of public uses:
- Radio broadcasts: Every time a station plays your song on air
- Television broadcasts: Music used in TV programmes, news, and shows
- Live concerts and events: Performances at festivals, concerts, and ceremonies
- DJ performances: When DJs play your tracks at clubs and events
- Clubs and bars: Background or featured music in nightlife venues
- Restaurants and hotels: Ambient music played in hospitality establishments
- Streaming platforms: On-demand and interactive streaming services
- Background music: Music in retail stores, gyms, salons, and public spaces
In essence, any time your composition is communicated to the public beyond a private, domestic setting, your performing rights are engaged and royalties are owed.
What Are Performing Royalties?
Performing royalties are the monetary payments generated when performing rights are exercised. They are collected from the entities that use music publicly and distributed to the creators who own the compositions. The main sources of performing royalties include:
- Broadcast stations: Radio and television stations pay license fees for the right to broadcast music to their audiences
- Event organizers: Concert promoters, festival organizers, and ceremony planners pay for the music performed at their events
- Digital platforms: Streaming services pay per-stream royalties based on usage data and licensing agreements
- Venues and businesses: Clubs, hotels, restaurants, gyms, and retail outlets pay annual or periodic license fees for using music on their premises
- Transport operators: Airlines, bus services, and other transport companies that play music for passengers
- Streaming and on-demand services: Both subscription and ad-supported platforms generate performing royalties for each stream of a composition
Who Gets Paid?
Performing royalties are paid to the creators of the musical composition, not automatically to everyone involved in a recording. Understanding who qualifies is critical:
Songwriters
The individuals who wrote the lyrics of the song. If multiple people contributed to the lyrics, each receives their documented share.
Composers
The individuals who created the musical composition, including melody, harmony, and arrangement. Producers who compose original musical elements also qualify.
Publishers
If a songwriter or composer has assigned a portion of their rights to a music publisher, the publisher receives their contractual share of the performing royalties.
Self-Published Creators
Artists who have not signed with a publisher retain 100% of their publishing share, receiving both the writer's and publisher's portions of performing royalties.
Being a performer on a track does notautomatically entitle you to performing royalties. These rights belong to the composition's creators. Performers have separate neighbouring rights.
How MCSN Manages the Process
MCSN operates a comprehensive system to ensure performing royalties reach the right people. The process involves four key stages:
Licensing Users
MCSN issues licenses to radio stations, TV broadcasters, venues, event organizers, and businesses across Nigeria, granting them legal permission to use music in exchange for license fees.
Monitoring Performances
MCSN tracks which songs are being played, where, and how often. This includes monitoring broadcast logs, streaming data, setlists from live events, and usage reports from licensed venues.
Royalty Collection
License fees and royalty payments are collected from music users on a regular schedule. MCSN also collects international royalties through reciprocal agreements with over 100 PROs worldwide.
Royalty Distribution
Collected funds are distributed to registered members based on verified usage data and the ownership percentages documented in their work registrations and split sheets.
Challenges in the Nigerian Context
While the performing rights system is well-established globally, Nigeria faces specific challenges that MCSN is actively working to address:
Piracy and Unlicensed Use
Many businesses and broadcasters still use music without proper licenses, depriving creators of income they are legally owed.
Creator Unawareness
A significant number of Nigerian musicians are unaware of their performing rights or how to register with MCSN to claim their royalties.
Underreporting by Licensees
Some licensed music users fail to accurately report which songs they play, making it difficult to attribute royalties to the correct creators.
Digital Complexity
The rapid growth of streaming platforms and digital content creates new licensing challenges that require continuously updated systems and agreements.
How to Maximize Your Performing Royalties
Taking the following steps will ensure you capture the full value of your performing rights:
- Join MCSN: Membership is free and is the essential first step to having your performing rights managed professionally.
- Register All Your Compositions:Every song you've written or co-written should be registered through the MCSN Work Submission Form with accurate metadata.
- Assign Your Rights Properly: Complete the Deed of Assignment to authorize MCSN to license, collect, and distribute royalties on your behalf.
- Maintain Accurate Records: Keep your contact information, banking details, and catalogue listings up to date with MCSN to avoid payment delays.
- Report Performances: If you perform live, provide MCSN with setlists and event details to ensure your live performances generate tracked royalty income.