Nigeria’s music industry is facing a fresh round of tension as disagreements emerge over how copyright levy funds should be distributed. At the center of the issue are the Nigerian Copyright Commission (NCC), the Musical Copyright Society Nigeria (MCSN), and the Record Label Proprietors’ Initiative (ReLPI), a body representing major local and international record labels operating in the country. The dispute comes at a time when Afrobeats has become one of Nigeria’s most successful cultural exports, drawing significant global investment and attention.
What the Copyright Levi is About
A copyright levy, also known as a private copy levy, is a fee imposed on devices and materials capable of copying creative works, such as mobile phones, memory cards, and storage devices. The idea behind the levy is to compensate right holders for private copying that cannot realistically be licensed or monitored on an individual basis. In Nigeria, the NCC oversees the collection and planned disbursement of these funds, which are meant to benefit creators and copyright owners across different creative sectors, including music.
The Role of MCSN in Nigeria’s Music Ecosystem
The Musical Copyright Society Nigeria (MCSN) is a Collective Management Organization (CMO) approved by the NCC to license and collect royalties for musical works and sound recordings. Its responsibilities include granting licenses to music users such as broadcasters, hotels, and digital platforms, collecting royalties from them, and distributing those funds to its members.
Through reciprocal agreements with foreign CMOs, MCSN also helps ensure Nigerian creators receive royalties when their works are used outside the country.
Who ReLPI Represents
ReLPI, the Record Label Proprietors’ Initiative, is a non-profit industry body that represents owners of sound recordings, commonly referred to as masters. Its membership includes major Nigerian labels such as Mavin Records, Chocolate City, and Davido Music Worldwide, as well as international companies like Universal Music Group, Sony Music, and Warner Music Group.
Unlike a CMO, ReLPI does not collect royalties broadly on behalf of creators. Instead, it serves as an advocacy and representation platform for record labels, particularly on issues affecting sound recordings and industry investment.
Why Record Labels Are Objecting
The current disagreement stems from the NCC’s plan to distribute the music industry’s share of the copyright levy through collective management structures. ReLPI argues that no existing CMO has a mandate to represent the sound recording interests of its member labels.
According to the group, routing funds meant for sound recording owners through a body that does not directly represent them raises concerns about representation, transparency, and alignment with industry practice. ReLPI maintains that the portion of the levy attributable to sound recordings should be paid through its organisation, which it says has been expressly mandated by its members to protect their interests.
The NCC’s Position
The NCC has been working to activate the copyright levy framework and ensure that the scheme becomes operational rather than remaining a regulatory concept. The Commission has engaged with industry stakeholders over time and has signaled its intention to move forward with disbursement.
However, record labels argue that key issues regarding representation and distribution remain unresolved ahead of the planned release of funds.
The Letter to the Commission
In a letter dated January 21, 2026, addressed to the Director-General of the NCC, ReLPI reiterated its concerns and requested urgent engagement with the Commission. The letter references previous correspondence and emphasizes that sound recordings are a distinct category of copyright under Nigerian law.
ReLPI cited provisions of the Copyright Act 2022, including the right of copyright owners to opt out of collective management, and stressed that record companies are major investors in talent discovery, production, marketing, and international promotion.
The group warned that excluding sound recording owners from direct participation in the levy distribution framework, or routing their entitlements through unmandated structures, could undermine fairness and accountability within the industry.
What This Means for the Music Industry
The outcome of the dispute could shape how copyright revenues are administered in Nigeria’s fast-growing music sector. As the industry continues to attract global attention and investment, stakeholders are increasingly focused on governance structures that support transparency, sustainability, and confidence.
With discussions ongoing, industry observers are watching closely to see how the NCC balances regulatory oversight with the concerns of investors and rights holders in the evolving music economy.
