The concept of “business ecosystems” offers researchers, businesses, and policymakers a new perspective and conceptual lens to understand the complex nature of innovative business environments. It is already known that a business ecosystem’s success is determined by the governance and rules of ecosystem actors’ engagement and activity. This study extends the governance perspective and explores how a business ecosystem can be shaped by government interventions. It applies the method of a single qualitative case study of the Nigerian music ecosystem with data collected from executives working in this industry. The research investigation indicates that the impact of government interventions on business ecosystems occurs in three distinct stages, following an input-process-output (IPO) approach with impact on the health of the Nigerian music ecosystem. The findings of this study complement the existing literature on business ecosystems, public policy, and the music industry.