One play of one song can generate up to four separate payments, each owed to a different person. Most Nigerian creators collect one of them, or none.
Here is a scenario that plays out daily in Nigeria: A producer finishes a track, a songwriter pens the lyrics, a singer records it, and a publisher handles the catalog. The song is released, played on the radio, streamed on platforms, used at major concerts, and synchronized into a Nollywood film.
That is one song, but four distinct uses. Depending on how rights are structured, this generates up to four different streams of royalty income, each going to a different set of rights holders. Yet, most of that money never reaches anyone. Not because it was not generated, but because most Nigerian creators do not know it exists, do not know who it belongs to, and are not registered with the body that collects it.
This article breaks it down. We explain the four main types of music royalties, show you who owes what, and explain how the Musical Copyright Society Nigeria (MCSN) works to put that money in your hands.
What Are Music Royalties?
Music royalties are payments made to rights holders whenever their intellectual property is used commercially. In the music industry, this means any time a song is played, broadcast, streamed, reproduced, or licensed, the creators are legally entitled to compensation.
These royalties are not “tips” or gifts; they are mandatory payments that flow from music users to music creators. However, without a Collective Management Organisation (CMO) like MCSN, there is no reliable system to ensure this money actually reaches you.
To understand how you get paid, you must first understand the four distinct categories of music royalties. Each is triggered by a specific type of use and belongs to a different set of rights holders.
1. Performing Rights: When Your Composition Is Played in Public
Performing rights are the most widely known royalty type. They are triggered any time a musical composition (the underlying song, meaning the melody and lyrics) is performed or communicated to the public.
Any commercial public use of a composition generates a performing right royalty.
- What triggers it: radio and TV broadcasts, live performances, music played in venues such as restaurants, hotels, gyms and shops, streaming platforms and online radio.
- Who earns it: composers, songwriters, lyricists and music publishers. Anyone who owns or administers the composition.
- Who pays it: the broadcasters, platforms and businesses that use music publicly, all of whom are licensed by MCSN.
- How MCSN collects: licensed stations and platforms submit usage logs and cue sheets showing what was played. MCSN matches those plays to registered works and credits the royalty to the right accounts.
Imagine your song plays on XYZ FM during a morning show. Because the station holds an MCSN broadcast license, they submit a cue sheet including your track. MCSN matches that play to your registered composition and credits a performing right royalty to your account. This same process occurs when your music is played in a licensed Lagos restaurant or streamed online.
2. Mechanical Rights: When Your Composition Is Reproduced
A mechanical royalty is generated whenever a composition is reproduced or copied from one format to another. The name is a throwback to the era of “mechanically” pressing music onto physical cylinders and vinyl records, but the concept remains vital in the digital age.
Today, this primarily applies to streaming and digital downloads. It is important to note that this is a distinct royalty from performing rights, even though the same action triggers both. When someone plays your song on a streaming platform, a performing right royalty is generated for the “public communication” of the song, while a mechanical royalty is simultaneously generated for the “digital reproduction” of your lyrics and melody.
- What triggers it: digital streaming, downloads, ringtones, and physical formats such as CDs and vinyl.
- Who earns it: composers, songwriters and publishers. Mechanical rights belong to the composition, not the recording.
- Who pays it: streaming platforms such as Boomplay, Apple Music, Spotify and Audiomack, download stores, and physical manufacturers.
- How MCSN collects: through licensing agreements with digital platforms operating in Nigeria, and internationally through reciprocal agreements with societies abroad. Platforms report stream counts; MCSN calculates and pays the mechanical share.
Your song is on a DSP. Each time a fan streams it, the platform generates two separate payments: a performance royalty (for playing the song to a listener) and a mechanical royalty (for the digital copy made to facilitate that stream). Through its digital licensing agreements, MCSN ensures that the mechanical portion is collected and paid to you as the songwriter.
3. Neighbouring Rights: When Your Recording Is Played
While performing and mechanical rights belong to the composition (the songwriter and publisher), Neighbouring rights, also called related rights, belong to the other half of the song: the sound recording, the master.
These royalties go to the people who created the recorded version, whether or not they wrote a word of it. This is the royalty stream Nigerian performers and producers have historically lost the most money on, because many never knew it existed as a separate payment at all.
- What triggers it: radio and TV broadcasts of a recording, streaming of a specific master, and any public use of a sound recording in venues.
- Who earns it: recording artists, session performers, music producers and record labels. Anyone who owns or co-owns rights in the master.
- Who pays it: the same broadcasters, platforms and venues that pay performing rights. Same payers, separate payment, different recipients.
- How MCSN collects: MCSN administers both composition and sound recording rights. Members who register as artists, producers or labels and submit their masters receive distributions from that licensing income.
Your song plays on XYZ FM. The station’s license fee generates two distinct payments from that single broadcast:
a. A performing right royalty for the songwriter who wrote the lyrics and melody.
b. A neighbouring right royalty for the recording artist and the producer who created the specific version played on air.
Both parties must be registered with MCSN to claim their respective shares of that broadcast.
4. Sync Rights: When Your Music Meets Moving Images
Synchronization or “Sync” royalties are triggered when music is “synced” with moving images. This is often the most lucrative royalty type because it involves a direct license for a specific use in a visual production.
Unlike other royalties collected via broad licenses, a Sync License is usually a one-time upfront fee negotiated for a specific project. Because both the composition (the song) and the master (the recording) are used, two separate sync fees are typically paid. Any time music is deliberately paired with visual content, from a Nollywood film to a YouTube video, a license is required.
While sync deals are often negotiated directly, MCSN acts as a vital bridge. When a production company wants to use a Nigerian song, MCSN facilitates the licensing process to ensure the rights holder is fairly compensated and the paperwork is handled correctly.
- What triggers it: film and TV placements across Nollywood, Netflix and Africa Magic, advertising on TV, radio and digital, video games, documentaries, and social media content.
- Who earns it: both sides of the song. Composition owners, meaning songwriters and publishers, and master owners, meaning artists and labels. Sync deals typically need clearance from both.
- Who pays it: film producers, advertising agencies and content creators. Whoever is putting your music behind their pictures.
- How MCSN helps: sync deals are often negotiated directly, but MCSN acts as the bridge. When a production wants a Nigerian song, MCSN facilitates the licensing so the paperwork is done properly and the rights holders are fairly paid.
A major Nollywood production wants your track for a key scene. They contact MCSN to clear the rights. Because your work is registered, MCSN facilitates the negotiation for both the composition and master licenses. Without this registration, the production might pass over your track for one that is easier and safer to license legally.
Who Earns What: Royalties by Role
Your role on a song determines which royalties belong to you, and most Nigerian creators qualify for more than one stream. Here is the honest breakdown.
- Songwriter or composer. Performing rights, mechanical rights and sync rights, all on the composition.
- Author or lyricist. The same three. Lyrics are part of the composition, and words alone earn a full share.
- Music publisher. Performing, mechanical and sync, collected as administrator of the compositions in its catalogue.
- Recording artist or performer. Neighbouring rights on the master, plus sync when the recording is placed. If you did not write the song, the composition royalties are not yours, no matter how big the record gets.
- Music producer. Neighbouring rights and sync on the recording. Where a producer also contributed melody or structure, a composition share may apply too, but only if it was agreed and documented in writing.
- Record label. Neighbouring rights and sync on the masters it owns.
- Wrote it and recorded it yourself? All four. Performing and mechanical on the composition. Neighbouring on the recording. Sync on both. Every stream, every broadcast, every placement. One registration with MCSN activates the lot.
How MCSN Collects Royalties on Your Behalf
MCSN is the only body in Nigeria approved by the Nigerian Copyright Commission (NCC) to collect all royalty types for musical works and sound recordings.
In practice, this is what we do for you: we license the radio stations, streaming platforms, venues and broadcasters; we track every play of your registered works; we collects all royalty types; we pay royalties directly to your account; and through its international connections, we represent your music beyond Nigeria’s borders.
From your side, the workflow is short:
- Register free as a member at mcsnnigeria.org.
- Submit your works, naming every composer, performer and producer, with the ownership splits agreed in writing. A split sheet settles this before it can become a dispute.
- MCSN’s licences generate the income, from broadcasters, venues, platforms and productions.
- Monitoring tracks your plays, through cue sheets, platform data feeds and usage logs.
- Plays are matched to your works in the catalogue, and royalties are calculated for each rights holder.
- Distributions are paid straight to your account on MCSN’s regular cycles, with statements showing what played, where and at what rate.
- Sync enquiries come through MCSN, which facilitates the negotiation for registered members.
If you make music, register your works with MCSN for free, in every role you hold. If you use music in your business, get the licence that actually stands under the Copyright Act. Either way, the system is already running.
Become a Member of MCSN
Joining MCSN is the most important step toward earning performance royalties. Membership authorises MCSN to license, collect, and distribute royalties for your musical works and sound recordings.
Register Your Works
Once registered as a member, ensure that all compositions and recordings are properly submitted. Accurate work registration enables MCSN to track usage and distribute royalties correctly.
