The Federal High Court in Lagos has barred the Central Bank of Nigeria (CBN) and 20 commercial banks from from touching, releasing or transferring copyright levy funds received by the Musical Copyright Society of Nigeria (MCSN) in connection to sound recordings.
Judge Ambrose Lewis-Allago, granted the interim Mareva injunction on 9 February, halting the dissipation or disbursement of the copyright levy funds. PREMIUM TIMES saw a certified true copy of the order on Sunday.
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While ordering MCSN to preserve the funds “intact”, the judge alsl ordered the society to render accounts of the copyright levy fund linked to sound recording.
The ruling followed an application by the Record Label Proprietors’ Initiative (RELPI) alongside 11 major record labels under its umbrella in the aftermath of their opting out of an arrangment of collective management and administration of their rights.
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The record labels which joined RELPI to institute the suit included Mavin Records Ltd, Davido Music Worldwide Ltd, Premium Music Publishing Limited, Chocolate City Music Limited, Hypertek Digital Limited, and Digital Music Commerce & Exchange Limited (DMCE).
The rest are Beggars Group Media Limited, Universal Music Group, Sony Music Entertainment Africa, Warner Music South Africa, and Gamma Media Middle East (DMCC).
A certified true copy of the decision shared with PREMIUM TIMES showed that the court issued the interim injunction in a suit filed by RELPI on 5 February. REPLI and its 11 record label members sued MCSN as the primary defendant and joined the CBN and 20 commercial banks as parties that would be potentially affected by any court order issued in the suit.
The injunction prevents the banks and MCSN from dealing with the copyright levy funds linked with sound recordings until the motion on notice is heard on 12 March 2026.
RELPI argued that without the court’s intervention, the funds could be disbursed to MCSN, making it nearly impossible to recover amounts due to the record labels.
How it started
The dispute arose from the federal government’s implementation of the copyright levy under Section 89 of the Copyright Act 2022, intended to support Nigerian musicians.
In February, MCSN confirmed that it had received N1.21 billion as the first tranche of the levy, earmarked to reach creators across the country.
But the funds collection and management arrangment does not go down well with RELPI and the 11 record labels. They pulled out of the arrangement and headed to court to challenge it.
An affidavit filed by Chinedu Chukwuji, RELPI’s National Coordinator, in support of the suit further detailed the bone of contention in the matter.
It explained that the 2nd to 12th plaintiffs, the record labels, had formally opted out of collective management, giving MCSN no authority to administer their levy proceeds.
The affidavit noted that MCSN’s Memorandum and Articles of Association limit its role to musical works and songwriters, and it cannot represent producers of sound recordings.
“The defendant neither represents nor can credibly claim to represent the dominant rights owners in this category,” Mr Chukwuji said.
He stated on behalf of RELPI that the record labels control a dominant share of the Nigerian sound recording market, particularly in digital distribution, broadcasting, and public performance.
It said the plaintiffs gave RELPI the authority to act on their behalf to enforce their copyrights. Mr Chukwuji warned that if the funds are released to MCSN and commingled with other funds from other sources, it would be practically impossible to trace or recover the portion due to the record labels.
therefore sought an urgent order to halt the disbursement of the funds pending the conclusion of its substantive suit.
It warned that the funds were at risk of being dissipated if the court did not urgently intervene.
“There is a real, imminent, and substantial risk that the Defendant will, in no distant time, proceed to distribute, disburse, apply, dissipate, or otherwise deal with the copyright levy funds, thereby irreversibly dissipating the res and defeating the substantive claim in this suit,” he said.
Ruling
Granting the request, the court ordered the CBN, its agents, and the named 20 banks, to preserve the funds and submit affidavits within three days detailing amounts standing to MCSN’s credit.
The banks include Access Bank, CitiBank, Fidelity Bank, First Bank, FCMB, Guaranty Trust Bank, Heritage Bank, Keystone Bank, Skye Bank, Stanbic IBTC, and Standard Chartered, Sterling Bank, and Union Bank.
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The rest of the sued banks are United Bank for Africa (UBA), Unity Bank, Wema Bank, Zenith Bank, Ecobank Nigeria, Suntrust Bank Nigeria, and Enterprise Bank Limited.
The court also directed MCSN to preserve the funds attributable to sound recording and refrain from any dealings pending the hearing of the Motion on Notice.
It specifically barred MCSN “from withdrawing, transferring, converting, dissipating, or otherwise dealing with any copyright levy funds” it “already received, if any which are attributable to sound recordings owned by the 11 major record labels “after they validly opted out of collective management and administration of their rights”.
He therefore ordered the Society to “preserve such funds intact, render an account thereof, and refrain from any further dealing with same pending the hearing and determination of the motion on notice.”
The injunction ensures that the funds are preserved while the court determines who is legally entitled to them. The case is seen as a critical test for the administration of copyright levy in Nigeria and could set a precedent for the collective management of music rights.
MCSN has not yet filed a counter-affidavit because the injunction was granted ex parte, and it will have the opportunity to respond when the matter returns to court on 12 March.
The outcome of this case is likely to shape how copyright levies are administered in Nigeria and clarify the roles of collective management organisations and independent rights holders.
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