Court Freezes MCSN Copyright Levy Funds, Restrains CBN, 20 Banks from Disbursement

MICHAEL AKINOLA 

Justice Ambrose Lewis-Allagoa of the Federal High Court of Nigeria, Lagos Division, has granted an interim Mareva injunction freezing copyright levy funds payable to the Musical Copyright Society of Nigeria (MCSN), restraining the Central Bank of Nigeria (CBN) and no fewer than 20 commercial banks from disbursing or releasing the funds pending further hearing.

The order was made in Suit No. FHC/L/CS/207/2026 following an ex parte application filed on February 5, 2026, by Record Label Proprietors’ Initiative and 11 leading record labels and music companies.

The plaintiffs include Mavin Records Ltd; Davido Music Worldwide Ltd; Premier Music Publishing Limited; Chocolate City Music Limited; Hypertek Digital Limited; Digital Music Commerce & Exchange Limited (DMCE); Beggars Group Media Limited; Universal Music Group; Sony Music Entertainment Africa; Warner Music South Africa (Pty) Ltd; and Gamma Media Middle East DMCC.

The 2nd to 12th plaintiffs are suing through their lawful attorney, Record Label Proprietors’ Initiative.

In the motion ex parte, filed and argued by Oragwu Nnamdi, the plaintiffs sought an order restraining the CBN from disbursing, releasing, transferring, or otherwise paying out any copyright levy funds attributable to sound recordings and intended for MCSN, pending the hearing and determination of a Motion on Notice.

They further asked the court to restrain MCSN, its agents, servants or privies from receiving, accessing, withdrawing, transferring, dissipating or otherwise dealing with any copyright levy funds, whether paid directly by the CBN or routed through commercial banks.

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

The banks listed in the application are Access Bank Plc, Citi Bank Nigeria Limited, Fidelity Bank Nigeria Plc, First Bank of Nigeria Plc, First City Monument Bank Plc, Guaranty Trust Bank Plc, Heritage Bank Plc, Keystone Bank Limited, Skye Bank Plc, Stanbic IBTC Bank Nigeria Limited, Standard Chartered Bank, Sterling Bank Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, Zenith Bank Plc, Ecobank Nigeria Limited, SunTrust Bank Nigeria Limited and Enterprise Bank Limited.

In granting the application, Justice Lewis-Allagoa restrained the CBN, its officers, agents or any person acting under 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 also barred MCSN from receiving, accessing, utilising, withdrawing, transferring, converting, dissipating or otherwise dealing with the funds, whether already received or yet to be disbursed.

The judge directed the CBN and the listed banks to preserve the disputed sums and file affidavits of compliance within three days of being served with the order, disclosing the amounts standing to the credit of MCSN in respect of the levy payments earmarked for disbursement or already disbursed.

Furthermore, the court ordered 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 the collective management and administration of their rights, must be preserved intact.

MCSN was also directed to render an account of such funds and refrain from any further dealings with them pending the hearing of the Motion on Notice.

The affidavit in support of the application was deposed to by Dr. Chinedu Chukwuji of Lekki, Lagos.

At the hearing of the ex parte motion, counsel to the plaintiffs/applicants, their lawyer, Oragwu Nnamdi moved the application.

After considering the submissions, the court granted the orders as prayed and adjourned the matter to March 12, 2026, for hearing of the Motion on Notice.