Court orders freeze on music copyright levy funds

Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos has issued an interim Mareva injunction freezing copyright levy funds due to the Musical Copyright Society of Nigeria (MCSN).

The order bars the Central Bank of Nigeria (CBN) and 20 commercial banks from releasing or disbursing the funds pending further proceedings.

The ruling, delivered on February 9, 2026, followed an ex parte application filed on February 5, 2026, in Suit No. FHC/L/CS/207/2026 by the Record Label Proprietors’ Initiative alongside 11 major record labels and music companies.

The plaintiffs are Mavin Records Ltd; Davido Music Worldwide Ltd; Premier Music Publishing Limited; Chocolate City Music Limited; Hypertek Digital Limited; Digital Music Commerce & Exchange Limited; Beggars Group Media Limited; Universal Music Group; Sony Music Entertainment Africa; Warner Music South Africa Ltd; and Gamma Media Middle East. The 2nd to 12th plaintiffs instituted the action through their authorised attorney, the Record Label Proprietors’ Initiative.

Arguing the application, counsel to the plaintiffs, Oragwu Nnamdi, urged the court to preserve the disputed funds pending the hearing of the substantive Motion on Notice.

He requested an order restraining the CBN from disbursing, transferring, or otherwise paying out any copyright levy funds attributable to sound recordings and earmarked for MCSN until the Motion on Notice is determined.

Nnamdi also asked the court to restrain MCSN, whether directly or through its agents, from receiving, accessing, withdrawing, transferring, dissipating, or otherwise dealing with the levy funds, whether paid directly by the CBN or through commercial banks.

In addition, the applicants sought an order directing the CBN and the affected banks to preserve the funds and file affidavits of compliance within three days of service, disclosing the amounts standing to the credit of MCSN in respect of the levy payments.

After considering the submissions and reviewing the affidavit evidence sworn to by Dr Chinedu Chukwudi, Justice Lewis-Allagoa granted all the reliefs sought.

In a brief ruling, the judge restrained the CBN, its officers, agents, or anyone acting on its authority from disbursing any copyright levy funds attributable to sound recordings and payable to MCSN pending the determination of the Motion on Notice.

The court further barred MCSN from receiving, accessing, using, withdrawing, transferring, converting, dissipating, or otherwise dealing with the funds, whether already received or yet to be disbursed.

Justice Lewis-Allagoa also ordered the CBN and the listed banks to preserve the disputed sums and file affidavits of compliance within three days, detailing the amounts standing to the credit of MCSN in respect of levy payments already made or awaiting disbursement.

Additionally, the court directed that any copyright levy funds already received by MCSN and attributable to sound recordings owned by the 2nd to 12th plaintiffs after they had validly opted out of collective management of their rights must be preserved intact.

MCSN was also ordered to render an account of such funds and to refrain from any further dealings with them pending the hearing of the Motion on Notice. The case was adjourned to March 12, 2026, for the hearing of the Motion on Notice.