Nigeria has no comprehensive income tax treaty with the United States. All US-source income is subject to standard withholding rates. An ITIN ensures your payments are processed correctly.
With the naira losing significant value, every dollar earned from US platforms matters. An ITIN unlocks full access to US payment platforms and protects your earnings.
Afrobeats Is Global — Your Royalties Should Be Too
Nigerian music — Afrobeats, Afropop, Highlife, and Afrofusion — is dominating global streaming charts. Artists from Lagos, Abuja, and beyond are earning millions of streams on Spotify, Apple Music, YouTube Music, and Tidal. These streams generate royalty income in USD — and the IRS wants to know about it.
Music royalties from US streaming platforms are classified as US-source income. Without an ITIN, up to 30% is withheld from your royalty payments before they reach you.
How Nigerian Artists Receive Music Royalties
Most Nigerian independent artists distribute through:
- DistroKid — distributes to Spotify, Apple, Amazon, Tidal, and more. Pays via Payoneer or bank transfer. Requires W-8BEN with ITIN.
- TuneCore — similar to DistroKid; requires tax documentation for US royalties.
- CD Baby — distribution + publishing; issues 1099 forms to US-source royalty earners.
- Amuse — free distribution with revenue split model.
- Symphonic Distribution — preferred by many African independent labels.
Publishing Royalties: The Biggest Missed Opportunity
Beyond streaming royalties, Nigerian songwriters earn performance royalties from US radio and venue plays through PROs (Performance Rights Organizations). Joining ASCAP, BMI, or SESAC as a foreign rights holder requires an ITIN for proper US royalty collection.
Many Nigerian musicians miss thousands in uncollected publishing royalties simply because they haven't set up US royalty collection accounts. An ITIN is the first step.
How to Set Up US Royalty Collection as a Nigerian Artist
- Get ITIN via ITIN Plus — $99, 8–14 weeks. This is your US tax identifier for all royalty collection.
- Complete W-8BEN on your distributor — DistroKid, TuneCore, CD Baby all have tax info sections. Enter your ITIN.
- Register with a US PRO — ASCAP or BMI accepts Nigerian members as foreign rights holders. ITIN required.
- Set up SoundExchange account — for digital performance royalties from US internet radio and streaming services. ITIN required.
- Receive royalties via Payoneer or Wise — most distributors and PROs pay internationally via these services.
Nigerian Artists in Lagos and Abuja Earning US Royalties
Even mid-tier Nigerian artists with 1–10 million monthly Spotify listeners earn $3,000–$30,000+/year in streaming royalties. The difference between receiving 70% vs 100% of this is simply having an ITIN on file.