The Nigerian Copyright Commission (NCC) is facing renewed controversy over its planned disbursement of the private copying levy — a statutory compensation intended for right holders — after the Record Label Proprietors Initiative (ReLPI) challenged the Commission’s choice of recipient.
ReLPI, the trade association representing major Nigerian record labels, has raised serious objections to the NCC’s intention to disburse levy funds to the Musical Copyright Society of Nigeria (MCSN), arguing that the organisation does not have the mandate to collect and distribute the levy on behalf of ReLPI’s members.
In a letter dated January 21, 2026, and addressed to the NCC, ReLPI’s President & Chief Operating Officer of Mavin Records, Peter Tega Oghenejobo insisted that the Commission’s proposed disbursement mechanism violates standard industry practice. The association also argued that the allocation framework fails to align with established norms for establishing shares among rights classes and distributing levies equitably.
IFPI Warns Against “Irreversible Prejudice” in Levy Disbursement
A day after ReLPI’s letter, the International Federation of the Phonographic Industry (IFPI) weighed in with its own correspondence to the NCC. In a January 22, 2026 letter, IFPI’s regional director for Sub-Saharan Africa, Angela Ndambuki, urged the Commission to disburse the levy in a “judicious, equitable, transparent” manner that protects the interests of rights owners represented by ReLPI.
IFPI demanded that the portion of the levy attributed to sound recordings be clearly ascertained, and that the distribution mechanism ensures funds reach the relevant rights owners. The organisation further insisted that any collective management route must only be used where the collecting entity has an unequivocal mandate from the rights owners.
In its letter, IFPI also called on the NCC to pause the disbursement, warning that funds could be wrongly paid to an entity lacking the requisite mandate — a move that could cause “irreversible prejudice” to rights owners.
A Structural Crisis in Nigeria’s Royalty System
The dispute comes amid long-standing industry concerns about Nigeria’s royalty collection structure. The country’s collective management system has been plagued by internal disputes, leadership tussles, and questions of legitimacy, prompting the emergence of alternative bodies such as ReLPI to protect the interests of major and emerging stakeholders in the music industry.
What Is the Private Copying Levy?
The private copying levy, often referred to as the copyright levy, is a form of indirect remuneration to right holders. It is premised on the notion that some acts of private copying cannot be practically licensed by rights owners.
In Nigeria, where licensing private and public use of music is often difficult or unfeasible, the levy is used as blanket compensation for rights owners. The levy is typically applied to products and media capable of reproducing copyrighted material, including:
- USB flash drives
- SD memory cards
- Mobile phones
- MP3 players
- DVDs and DVD recorders
- Computer hard drives
- Photocopying machines
- Radio and TV recording devices
- Personal computers
- Decoders and signal receivers
The levy compensates for activities such as:
- Making backup copies
- Time-shifting or format-shifting
- Sharing copies with friends or family
- Downloading for personal use
- File sharing
- User-generated content and mash-ups
Who Is ReLPI?
ReLPI (Record Label Proprietors Initiative Ltd/Gte.) is a non-profit trade association that protects the interests of sound recording owners in Nigeria. Its members include some of the country’s biggest record labels, with extensive catalogues spanning decades of Nigerian music.
The association is recognised by IFPI, the global authority on sound recording copyright protection, and represents a significant share of Nigeria’s contemporary music market.
ReLPI’s membership includes:
- Mavin Records
- Chocolate City
- Davido Music Worldwide (DMW)
- Premier Records
- Universal Music Group (UMG)
- Sony Music Entertainment (SME)
- Warner Music Group (WMG)
- Digital Music Commerce & Exchange (DMCE)
- Hypertek Digital
The NCC-Approved CMO: MCSN
The Musical Copyright Society of Nigeria Ltd/Gte (MCSN) is the only Collective Management Organisation recognised by the NCC to license, monitor, and distribute royalties for musical works and sound recordings in Nigeria.
Founded in 1984, MCSN claims to collect and distribute royalties for performing, mechanical, and neighbouring rights across the country. Its platform enables rights owners to become members, submit works, and report usage, while businesses and individuals can obtain licenses for music use.
MCSN states it has over 38,000 members, tracks over 450,000 songs, has paid out more than ₦1 billion in royalties, and has issued over 2,500 licenses since 2022.
ReLPI’s Legal Objection
ReLPI’s central contention is that its members have opted out of Nigeria’s collective management structure under Section 88(9b) of the Copyright Act 2022. This section explicitly prevents MCSN from representing works of rights owners already represented by another CMO.
ReLPI argues that the Extended License granted to MCSN cannot cover the works of its members, since they have formally withdrawn from the organisation. It further claims that no existing CMO represents the interests of ReLPI members, and therefore none have the mandate to collect the levy on their behalf.
Crucially, ReLPI points to Section 89(3) of the Copyright Act 2022, which provides that the levy payable under the Act may be disbursed by the NCC not only to approved CMOs but also to “other representatives of right owners,” in accordance with Commission regulations.
ReLPI asserts that this provision makes the question of whether it is a CMO irrelevant. The organisation argues that it is a mandated representative of sound recording rights owners and therefore falls squarely within the category of bodies eligible to receive the levy.
Despite these legal arguments, ReLPI says the NCC has insisted on disbursing the levy exclusively to MCSN as the only recognised CMO.
What the Law Actually Says
Under Section 4 of the Copyright (Levy on Material) Order 2021, the CMO is entitled to receive 30% of the levy payable under the order on a quarterly basis.
However, Section 89(3) of the Copyright Act 2022 expands the NCC’s power, allowing the Commission to disburse levy funds to approved CMOs or “other representatives of right owners” — a category ReLPI argues it falls within.
“The levy payable under this section shall, subject to approved deductions, be paid into the Fund of the Commission and the Commission shall have power to disburse the funds to approved CMOs or other representatives of right owners, in accordance with the regulations made by the Commission.”
This statutory language suggests that the NCC’s discretion to allocate levy funds is not strictly limited to CMOs operating under the extended collective license framework. Rather, it can be distributed to other duly mandated representatives of rights owners, including organisations such as ReLPI.
ReLPI’s Final Stand
ReLPI’s position is clear: MCSN lacks the mandate to collect the private copying levy on behalf of its members. The association maintains that its members retain the largest market share in Nigerian contemporary music and should therefore be properly represented in any levy disbursement.
As of the latest communication, ReLPI says the NCC remains intent on disbursing the levy to MCSN — a move it believes is legally and commercially untenable.
The Broader Implication
This dispute underscores the urgent need for a transparent, inclusive, and credible royalty collection framework in Nigeria. Without a properly functioning system, the country risks perpetuating a cycle of informal use, under-remuneration, and industry distrust.
If the NCC proceeds to pay the levy to an entity without the mandate of the right owners, it could trigger long-term damage to investor confidence and the legitimacy of copyright enforcement in Nigeria — a risk that both ReLPI and IFPI have explicitly warned against.