For every aspiring musician, signing record deal represents the ultimate dream. It feels like a golden ticket to fame, wealth and recognition. Signing into a record label is promise of a polished music video, a hit song on the charts, and a name that goes beyond local crowds where they started from. Social media is filled with success stories of artistes celebrating their “big break”, making the deal seem like the ultimate validation of talent. Example of some young artistes who are considered a success in the music industry are:

  • Oyinkansola Sarah Aderibigbe Professionally known as Ayra Starr a Nigerian singer and songwriter, who officially joined Mavin Records on January 21, 2021, when she was unveiled by label boss Don Jazzy. She was signed to the label in 2020 after being discovered on Instagram, and her self-titled debut EP was subsequently released on January 22, 2021, and its lead single “away”, which spent two consecutive weeks at number 4 on Nigeria’s Turn Table Top 50 chart; the song also peaked at number 17 on the Billboard Top Thriller Global Chart. It was followed by the release of her debut studio album titled 19 & Dangerous in 2021.
  • Folarin Temiloluwa Odunlami, Nigerian singer-songwriter and Afrobeats artist known professionally known as Fola pondis, signed a recording contract with Bella Shmurda’s record label, Dangbana Republik, on October 11, 2024. Following this, he released his debut EP titled ‘What a feeling’ in December of that same year. Since joining the record label he has collaborated with big artistes like, Wizkid, Kizz Daniel, Zlatan, BNXN, and the record label boss, Bella Shurmda.
  • Chimamanda Pearl Chukwuma profesionally known as Qing madi, a Nigerian singer-songwriter and a dancer. She is signed to Columbia Records, working with Bu Vision & Jton Music Publisher, though she previously had deals with Richiemusic Emipire in 2021 but left. Qing Madi gained widespread recognition after her 2022 single “See Finish” and its 2023 follow-up, “Ole”, featuring BNXN

The list continues, including many more artistes who are successful. But behind the fame and the red carpets, not every deal is what it appears to be. For some, the contract that promised stardom comes with private pains – low royalties, limited creative freedom, and obligations that can feel more like chains than opportunities. For every artist who rises to global acclaim, there’s another struggling under the weight of a deal that did not serve them.

This is the reality of record deals – a blessing to some, and a trap for others. And as the music industry evolves, with streaming, independent releases, and social media platforms leveling the playing field, the question becomes more urgent than ever: is signing a record deal truly the path to success, or is it a gamble that could cost more than it gives?

The Blessing: When a Record Deal Changes Everything

For many young artistes, a record deal is more than just a contract, it’s the launchpad that transforms a dream into reality.

Imagine spending months recording songs in a small bedroom studio, struggling to pay for beats, mixing, or promotion. Then, suddenly, a label steps in, offering financial backing, access to professional producers, and a platform to share your music with the world.

The benefits are undeniable. Labels provide artistes with resources that are otherwise out of reach like marketing teams, social media strategists, and video directors. This network doesn’t just amplify the music, it builds a brand. A single well-promoted song can skyrocket an unknown artist into the public consciousness.

Moreover, record deals offer credibility. Being signed sends a signal to the industry, and to the fans. Being signed gives opportunities such as collaborations with established artists, endorsements, and sold-out shows which often come more easily with a label’s backing.

Examples of Popular Nigerian Record labels are Mavins by Don jazzy, YBNL (Yahoo Boy No Laptop) by Olamide, DMW (Davido Music Worldwide), Alapomeji Ancestral Records by 9ice, Star boy Entertainment by Wizkid, among others.

The Trap: When a Record Deal Becomes a Cage

Not every story is a fairy tale. For some artistes, a record deal can quickly shift from a blessing to a burden. Many contracts are complex and heavily favor the label. Low royalties, loss of ownership over music, and long-term obligations can leave artists trapped, unable to freely release new songs or fully benefit from their own work.

Some deals include repayment clauses, where the upfront money given to the artist, must be paid back from future earnings. This means that even if a song becomes a hit, the artist may see very little profit. Creative control can also become a battlefield.

The music industry is littered with stories of talent lost to restrictive contracts. Artists who once dreamed of fame find themselves negotiating exits, fighting over rights, or struggling under the pressure to constantly produce hits. In these cases, the record deal feels less like a springboard and more like a cage.

Examples of some young Nigerian Artistes that terminated their deals with the record labels are:

  • Mohbad (formerly of Marlian Records)

Ilerioluwa Oladimeji Aloba popularly known as Mohbad officially terminated his contract after claiming the label did not pay him royalties and failed to fulfill agreed terms of their 2019 agreement.

He accused the label crew of physical attacks and said his request to change his manager (who was related to the label boss) was met with violence. After his exit, his public disputes drew widespread attention to how young artists can struggle with record label terms.

Mohbad’s situation became controversial because of how public and messy the conflict was, and because of his untimely death.

  • Lyta (formerly associated with YBNL Nation)

Babatunde Rahim known as Lyta was never formally signed with a written contract, according to Olamide, but he was promoted as part of the YBNL “family”.

He left in 2019 because he wanted to release music more frequently and didn’t want to wait for the label’s promotion schedule. Lyta also reportedly wanted better opportunities and a more active release strategy than what he felt the label was offering.

Finding the Balance: Is It Worth It?

The truth is, a record deal is neither inherently good nor bad. It’s a tool, how it affects an artistes depends on the terms, the support system, and the artiste’s knowledge of the industry. Some succeed brilliantly under a label, while others flourish independently, using social media, streaming platforms, and Do it yourself (DIY) promotion to reach audiences on their own terms.

For young aspiring artists, the lesson is clear – research, read contracts carefully, and understand your worth before signing. A record deal can be a blessing if approached strategically, but without preparation, it can quickly become a trap.

In the end, the journey of music is personal, and success can take many forms, sometimes with a label, sometimes without a label. What matters most is that the artistes retain control of their passion, their sound, and their dreams.