Floating Music Industry in Nigeria: The Financial Fluidity and Risk Assessment Mechanism

This study examines the financial dynamics and risk management within Nigeria's evolving music industry, which is characterised by unpredictable revenue, digital changes, and informal market behaviours. Financial fluidity refers to the seamless creation, transfer, and reinvestment of financial resources throughout the value chain, including production, distribution, marketing, and performance. The paper explores how artistes, record labels, managers and distributors handle fluctuating income sources like streaming, royalties, live performances, endorsements, and digital platforms. It also evaluates risks such as market volatility, piracy, contractual issues, and technological uncertainties that affect financial sustainability. The study adopted mixed-method design approach and purposive sampling. It highlights adaptive financial strategies like diversification, data-driven decisions, and strategic partnerships as crucial for mitigating risks. The findings reveal revenue diversification, platform dependency and contract formalisation that influence financial fluidity outcomes. It further emphasises the need for institutional reforms, enhanced royalty tracking, and financial literacy to bolster industry resilience. Consequently, this study enriches music business scholarship by providing a detailed understanding of financial behaviour in an emerging Nigeria’s market.