Major Nigerian Record Labels Oppose NCC's Royalty Distribution Plan to MCSN
A significant dispute has emerged in Nigeria's music industry as major record labels, represented by the Record Label Proprietors Initiative (ReLPI), have publicly opposed the Nigerian Copyright Commission's (NCC) plan to disburse copyright levies to the Musical Copyright Society of Nigeria (MCSN). This conflict highlights ongoing challenges in the country's royalty collection system.
The Core of the Dispute
In a formal letter dated January 21, 2026, and signed by Mavin Records CEO Tega Ogenejobo, who serves as ReLPI's president, the organization expressed strong objections to the NCC's proposed disbursement process. ReLPI argues that the current plan fails to align with standard practices, particularly in establishing fair shares among rights classes and distributing levies appropriately.
The organization referenced previous correspondence with the NCC regarding the inclusion of sound recording owners in the distribution framework. ReLPI maintains that the disbursement mechanism should ensure funds reach relevant right holders directly, rather than through entities lacking proper mandates.
International Support for ReLPI's Position
The International Federation of the Phonographic Industry (IFPI) has thrown its weight behind ReLPI's stance. In a separate letter dated January 22, 2026, and signed by Angela Ndambuki, IFPI's regional director for Sub-Saharan Africa, the global organization called for judicious, equitable, and transparent distribution of copyright levies.
IFPI specifically demanded that the portion belonging to sound recordings must be clearly ascertained and that distribution mechanisms should ensure funds reach relevant right holders. The federation encouraged the NCC to pause disbursement, warning of irreversible prejudice if funds are directed to entities lacking proper mandates.
Understanding the Copyright Levy
The private copying levy, also known as the copyright levy, represents a form of indirect remuneration for right holders. This system operates on the premise that certain private copying activities cannot be practically licensed by right holders. In Nigeria's context, where licensing music for private and public use presents challenges, this levy serves as blanket compensation.
The levy applies to various products and equipment capable of reproducing audio, audiovisual, and textual materials, including:
- USB flash drives and SD memory cards
- Mobile phones and personal computers
- MP3 players and DVD recorders
- Photocopying machines and papers
- Computer hard drives and decoders
Essentially, the Nigerian government, through the NCC, compensates right holders for informal use of their copyright and intellectual property nationwide.
Key Players in the Conflict
ReLPI (Record Label Proprietors Initiative) represents Nigeria's major record labels, including industry giants such as Mavin Records, Chocolate City, Davido Music Worldwide, and international players like Universal Music Group, Sony Music Entertainment, and Warner Music Group. The organization protects sound recording owners' interests and has gained recognition from IFPI as a legitimate representative.
MCSN (Musical Copyright Society of Nigeria) stands as the only Collective Management Organization approved by the NCC to license, monitor, and distribute royalties for musical works and sound recordings. Established in 1984, MCSN claims over 38,000 members, tracks more than 450,000 songs, and has issued over 2,500 licenses since 2022.
Legal Framework and ReLPI's Position
ReLPI bases its opposition on specific provisions of the Copyright Act 2022. Section 89(3) states that "the Commission shall have power to disburse the funds to approved CMOs or other representatives of right owners." ReLPI argues that this provision allows for distribution to organizations like itself, not just traditional CMOs.
The organization has exercised its rights under Section 89(3) to opt out of Nigeria's collective management structure. ReLPI maintains that existing music CMOs, including MCSN, lack the mandate to collect license fees on behalf of its members and that their operational models prove inequitable to rights holders' interests.
According to legal provisions, the Collection Management Organization typically receives 30% of payable levies quarterly under the Copyright (Levy on Material) Order 2021. However, ReLPI contends that nothing in the Copyright Act prevents it from receiving levies on behalf of its members, who represent the largest market share in Nigerian contemporary music.
Broader Industry Implications
This dispute represents the latest challenge facing Nigeria's music industry, which has long struggled with establishing organized structures for royalty collection and distribution. Existing Collective Management Organizations have faced internal controversies, including leadership disputes and legitimacy crises, prompting the formation of groups like ReLPI to represent major and emerging industry players.
At the time of reporting, ReLPI confirmed that the NCC continues to insist on disbursing levies to MCSN as Nigeria's only recognized CMO. This standoff underscores the urgent need for transparent, equitable royalty distribution systems that properly compensate creators and rights holders in Africa's largest music market.
