How To Start A Record Label Business In Nigeria (2018)

How To Start A Record Label Business In Nigeria (2018).

Record Label Business In Nigeria (2018)

record label business

record label business


The Nigerian music industry is ever growing on a daily basis as we can see from our talented musicians and songwriters who take to the stage on a regular basis to entertain us.

However, if you want to start a record label business in Nigeria, you must be able to have the following:

  1. Team management skill,
  2. Dedicated planning,
  3. Independent research and
  4. also be able to execute your plans.

Record labels connect fans to the artiste as well as inspiring the demand for an artist and produce the music which the artiste sang for the fans to listen to.

If you are looking for how to start a record label business in Nigeria, you must be able to be open to people especially the fans because they are the basis on which you are going to start a record label business in Nigeria.

Starting a record label business in Nigeria can as well be compared to starting other business which we have around.

You do not necessarily need a large sum of money rising up to a million Naria, but you can start a record label business in Nigeria with a capital which is way lower than the aforementioned price.


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Record labels are created to entertain fans while having a group of artists who would be employed.

The record label would source for the artiste they think is good enough, then they go ahead to sign him/her.

What they do next is to fund his personality so that the signed artiste can look good whenever he/she comes on TV or when called upon by journalists.

The record label makes their money whenever the artiste they signed sings a song and the song is being sold to the general public.

That basically is how a record label runs.



If you are in search for how to start a record label business in Nigeria, then take a look at the following points clearly stated below:



This is the first step you need to take into notice if you want to start a record label business in Nigeria.

First and foremost, you cannot go in search of starting any business in Nigeria or any part of the world without having capital.

It would be so disastrous if one tries to start any business with little or no capital.
In order to start a record label business in Nigeria, you need money. Starting a record label business in Nigeria is not a child’s play.

Consider that artiste you are going to be hiring.

There is no way you are not going to pay those artists you are going to sign into your record label.

They (artists) would not care if your record label is just starting up or it had been established, what they really care about is their money.

In addition, you are also going to be funding the way they will dress by purchasing one or two things which they will need.

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The point is that your record label will not be making money instantly and the money you need is just for a startup.

It would take some time before your record label begins to start making money.


A Business Plan

The same thing which applies to the first point also applies to the second.

If you want to start a record label business in Nigeria, you must be able to detail out your business plan.

A business plan is very much important if you want your business to be well organized and structured.

You need to be duly informed on the type of record label you are going to start up.

That is because some record label only deals with distribution of music, while other record labels deal with recording and some other things.

The business plan you are going to have will guide you and instruct you as you pursue your goal of starting up a record label.

The business plan should also contain the prices of the equipment you are going to purchase.

You need to lay down your expenses in your business plan so that it would be relatively easy for you when you kick-start your record label business.


Get Your Equipment Ready

If you want the artists you are going to sign when you start up your record label, then you must purchase the reigning and the most efficient equipment that is always present in any record label organization.

If you do not know the kind and type of equipment you are to purchase, it is best that you confirm from professionals who have been in the business a long time ago.


Gather Your Team

If you are willing to start a record label business in Nigeria, you must be able to gather a team.

A record label business is not a one-man thing, it must consist of group members.

From the start, you are going to be the CEO of the record label because you are the person that pioneered the starting up of the record label.

However, you can also double your position if you wish and be the artiste manager.

Also, take into notice that a new record label in Nigeria would also be needing the services if an artist and a publicist.

The publicist is sometimes a blogger who would promote your artiste and record label as a whole.

Note that if you do not have key figures in your record label, then you are not running a business.

The positions I would be listed below need to be occupied by those who are experienced.


The Positions Include:

Legal Affairs:

A legal affair officer will do the business of having to create and bring together all documents needed in a record label business.

Their job is to carefully explain in details the terms, inform you of the implications of your actions and assist you in designing and creating your contracts for you.

The legal affair office will be ever present with you as at the time when you have any case brought against you, lawsuit or any infringement.

That is solely the duty of the legal affairs, and it is important you get one into your record label business.

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The duty of those who you are going to higher into publicity is to take care of your image building and your public life as well as the public welfare of the rest of your crew.

Their job also is to create trends for you, that will enable your name sing to the ears of the top blogs and the media world in general.

They will take care of your media profiles and instantly reply to those who send messages to you.

The publicity team will shield you against any potential statements which can destroy your record label career.

They are literally your “amebo” in this business because they go outside the record label in order to hear what people are saying about you.



A manager is the closest person who would be relating with the artiste.

The manager would detail out carefully how the record label runs and makes sure the artiste obeys and complies with all the ideology and rules which the record label sets out.

The manager also takes the job of having to sell and distribute the songs sung by the artiste.

The manager position can also be broken into different positions again.

They can be in the form of the business office who would be taking care of bookkeeping, payroll and recording the finances both income and expenses.


Sound Engineers:

This person will take care of the sound produced for the artiste to sing with.

Their job is just based on the musical aspect and that is why it is ever important that you hire a sound engineer.

Achieving success in your record label business depends also on your sound engineer as well as others because everybody has a part to play.

HR Team


Sales Team:

They handle how artiste music is being sold and distributed nationwide.


Registration With Corporate Affairs Commission Of Nigeria (CAC);

Starting up a business is the goal and aim of every individual but sustaining the business and seeing the business grow to the highest possible top is also the dream of every individual.

And that is why there are some things that have to be done out rightly.

One of which is registering your record label business with the corporate affairs commission of Nigeria.

If you want your record label to be recognized, you would need to register it with the corporate affairs commission.

The corporate affairs commission has a branch in every state in Nigeria. This is the point where your legal team comes into play.

To register a record label with the corporate affairs commission, you would be paying over N100,00 to N200,000.


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Your contracts would be null and void if you are not seen as a legal entity.

That means that the artiste you signed can leave the record label anytime they wish and you cannot arrest them.

The public can steal your artiste’s songs and publish them without asking for your permission and you cannot sue them to court because you are not registered as a company in Nigeria.

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Registration of your record label name means that you are allowed to put in a label logo on music records and in events.

This will also stop anybody from trying to tamper with your logo.


Launching A Recording Studio

This is the next step you are expected to take if you wish to start a record label business in Nigeria.

You must have a recording studio because that is where your artists will be doing their thing of having to sing and for the sound engineers to record their songs.

A recording studio is very vital in any record label business.


Signing An Artist

This is the point where the HR comes into effect. It is very important that you must have artistes if you want to run a record label.

The job of the HR is to go in search of the artistes which matches your style and bring them into your record label for properly detailed talks.

If it is a rap artiste you want, your HR will search for the best possible rap artiste around and bring them into your record label.

And the same thing applies if you are in search of other artists with a different flavor.


Creating Hype For Your Artiste

At this point, you should have gotten your artists and your brand fully established.

The next thing is to publicize by making people know about your artists and your brand. This is the point where your publicist comes into play.

Your publicist will be charged with the duty of having to get the artistes on shows and getting them popular on social media.

Advertise them on TV Shows, Radio and so on as well as creating flyers, posters and placing their pictures on big billboards on major roads.


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Distribute Your Artiste

This is the point where you will need the services of your sales team.

Your sales team would have to organize a way of selling your artistic product. It is important to note that, if your music is not marketed correctly, you are bound to lose.

And that is why the owner of the record label is always part of the sales team.

You have to ensure that selling your music should be direct to those who want to buy.

Endeavor not to make the mistake of selling your music to the wrong audience.

You would need to study and get information on your artiste fan base, before going ahead to market that music.

Starting a record label business in Nigeria is a daunting task, but with time, you would overcome every problem if hard work is put in place.

I hope this article has enlightened you on how to start a record label business in Nigeria.

Don’t forget to comment and shear with your friends.


Updated: October 25, 2018 — 2:24 am

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