By P.L. Osakwe
■ Drafting Contracts That Benefit Both Parties
One of the biggest sources of conflict in the Nigerian entertainment industry is the imbalance in contracts between artists and their investors (record labels, managers, production companies, or sponsors). While it is true that the investor bears the financial risk of promoting and producing the artist’s work, a one-sided contract that leaves the artist with little or nothing will almost always lead to resentment and eventual disputes.
A good entertainment contract should be a partnership agreement in spirit, not a servitude agreement in disguise.
■ Why Contracts Go Bad
Desperation at the start: Artists often sign the first deal offered to them because they need exposure or financial support.
Lack of legal advice: Many creatives do not consult a lawyer before signing.
Overprotective labels: Investors sometimes include harsh clauses to protect their investment but inadvertently kill trust and creativity.
■ Principles of a Fair Entertainment Contract.
1. Transparent Financial Terms
State clearly how income will be shared (e.g., 60/40, 50/50 after expenses).
Specify which expenses are recoupable from the artist’s share.
2. Royalty Clauses
Define payment schedules.
Include reporting obligations so artists can see earnings breakdowns.
3. Duration and Renewal
Avoid excessively long contracts.
Include options for renewal based on mutual agreement, not automatic lock-ins.
4. Rights to Works (Masters and Publishing)
Labels may own masters for a fixed time, after which ownership reverts to the artist.
Publishing rights can be shared fairly.
5. Performance and Delivery Obligations
Artist agrees to produce a set number of works.
Label agrees to promote and distribute them to specified standards.
6. Review Clauses
Build in “contract review” points (e.g., after 2 years) to adjust terms based on success.
7. Exit Clauses
Define circumstances under which either party can terminate the agreement.
Provide for buy-out options or negotiated releases instead of forcing disputes.
□ The Investor’s Perspective
Investors put in money for studio time, production, marketing, PR, video shoots, and distribution. Without guarantees, they risk losing everything if the artist walks away.
Therefore, contracts must:
□ Protect their capital investment.
□ Provide reasonable exclusivity periods.
□ Allow them to recoup costs before profit sharing.
● The Artist’s Perspective
Artists bring the creative work, brand, and performance talent. Without fair compensation, they will lack motivation to continue under the deal.
Therefore, contracts must:
■ Give a fair share of earnings.
■ Ensure ownership or co-ownership of works.
■ Provide freedom to collaborate where appropriate.
■ Breach of Contract: Even a Bad Deal is Binding.
Under Nigerian contract law, a contract freely entered into is binding on the parties.
This means:
■ If you sign without coercion, misrepresentation, fraud, or illegality, the terms will stand.
■ Unfairness alone is not a legal defence, the courts do not rescue parties from bad bargains unless there is evidence of illegality or vitiating factors.
So, when an artist walks away from a deal without legal grounds, even if they believe the deal is unfair:
□ They are in breach of contract.
□ The investor can sue for damages and injunctions.
Sympathy from fans on social media will not erase liability.
■ Practical Advice for Artists Before Signing
● Always engage a lawyer before signing.
● Never sign under emotional pressure or financial desperation without fully understanding the terms.
● Negotiate clauses, most investors will respect an artist more for seeking clarity than for signing blindly.
■ Final Word on Balance
A sustainable entertainment industry in Nigeria depends on contracts that reward both creativity and investment.
For the investor: a fair return on investment.
For the artist: a fair share of the fruits of their talent.
When both sides win, there’s no reason for either side to walk away, and the law is more likely to protect the relationship than punish it.
