Universal Music/ Mavin Record Deal: Creative Industry Poised To Drive Nigeria’s Economic Growth
When some visionary analysts stress that One of Nigeria’s best routes to quick economic revival should be the art and creative industry, many treat such views with disdain.
Interestingly, this industry that has been overlooked over the years has grown steadily to become one of the best in the continent, with expanding economic impact and interest across the world.
The segments that have consistently generated global attention, have been music, movies, and fashion. For instance, reputable research platform Statista revealed that revenue in the Digital Music market alone has been projected to reach US$101.80m in 2023.
According to reports, the music industry in the country has witnessed significant revenue growth. The projected revenues reached US$73 million in 2021, compared to US$39 million in 2016, this signifies a 13.4% compound annual growth rate (CAGR).
It is this remarkable level of growth recorded in the music industry in Nigeria, that has attracted international investors like the Universal Music Group, a U.S. music company to invest in the Nigerian Economy.
Recently, the Universal Music Group (UMG) acquired a majority stake in Mavin Label Global (Mavin), a popular Lagos Nigeria-based Afrobeats music company founded by Don Jazzy.
Lucian Grainge, the Chairman/CEO of UMG revealed this in a statement last Monday.
Commenting on the deal, Grainge said, “Our criteria for identifying partners is straightforward: great artistes, great entrepreneurs, great people. With Don Jazzy, Tega, the Mavin Global team and their artist roster, we’ve found ideal partners with whom to grow together. Mavin’s brilliant artists have been catalysts in the transformation of Afrobeats into a global phenomenon. We’re thrilled to welcome them into the Universal Music Group family.”
UMG said that Mavin Label will “maintain autonomy” over its strategy and future talent development. As part of the agreement, CEO Don Jazzy and COO Tega Oghenejobo will continue leading the company.
According to UMG, the deal remains subject to regulatory approval and is expected to close by the end of Q3 2024.
Recall that in October, Mavin was being shopped by Shot Tower Capital at a valuation north of $125 million, with a sale price in the region of $150 million to $200 million. It was unclear if publishing was involved in the deal.
Mavin Global was founded in 2012 by artist, producer, music executive and entrepreneur, Michael Collins Ajereh aka Don Jazzy. The record label has played a role in bringing many Afrobeats artistes to the limelight within Africa and globally.
The Mavin record company is the driving force and home to many of the continent’s Afrobeats stars such as Rema, Ayra Starr, Asake, Crayon and Ladipoe, among others.
Mavin had already established a relationship with UMG, with Rema’s hit single “Calm Down”, which became the biggest Afrobeats song of all time. It reached No. 3 on the Hot 100 in 2023. It was initially distributed by Virgin Music, with its remix featuring Selena Gomez.
“Calm Down” racked up more than 1 billion on-demand streams in the U.S. alone since its release, with its global count much higher.
Mavin said that the investment is designed to spur its growth around the world, with a focus on both Mavin’s Artist Academy, which nurtures its roster in various musical and performance skills and its executive leadership team, which is aimed at growing the next generation of African leaders in the music business.
Commenting on the deal, Oghenejobo said, “With our proven history of collaborations within the UMG family, we have a strong belief that they are the ideal partner for the next phase of our growth, given the diversity and potential of our business.
“UMG is home to some of the world’s foremost music entrepreneurs and artists, making them a perfect match for our aspirations.
“By collaborating with UMG, we are dedicated to cultivating a vibrant creative environment that propels African music to new heights on the global stage,” Oghenejobo concluded.
Winning the Mavin auction catapults UMG deeper into the Nigerian Afrobeats scene.
The umbrella genre encompasses Afropop, Afro-fusion, high life and others that continue to explode around the globe.
In the past several years, artists such as Wizkid, Davido and Burna Boy have blossomed into global superstars, while the likes of Rema, Starr, Tems, Tyla, Ckay, Asake and Fireboy DML have led a wave of young, emerging talent coming from the African continent.
The movement has gained momentum to the point that the Recording Academy introduced a new Grammy Awards category for best African music performance, which was awarded to Tyla’s “Water” earlier this year.
The Nigerian Art and Creative Industry is a breath of fresh air for a lot of Nigerians. It has created over four million jobs for the youths in the areas of filmmaking, animation, video productions, movies, visual and performing arts, fashion design, ICT etc.
As a result, the country’s economy can beat its chest and boast that, for the first time, there is a realistic effort to diversify the economy. If governments at all levels, while harnessing the talents of young Nigerians in the art and creative industry, can increase the support for better productivity in the agriculture and manufacturing sectors, Nigeria will build a highly resilient economy capable of creating wealth and generating jobs for our ever-growing population.