The former Sex Pistols singer made the comments after being asked whether he was a fan of the hip-hop star.
"I'm afraid what Jay-Z does musically is parody to me," Lydon told NME. "He's just nonsense. I've never met him, but twice I've had to play on a stage opposite when he was on."
Lydon also claimed that he draws crowds away from Jay-Z when they perform together on the same bill.
The singer still plays with post-punk band Public Image Ltd.