Overview
IntroductionNigeria’s creative industry is anchored on globally recognised sectors, which include Nollywood, Afrobeats, literature, and digital arts. It has emerged as a significant contributor to the National GDP, cultural diplomacy, and youth employment. Despite its enormous potential, the industry remains undermined by systemic issues such as copyright infringement, piracy, opaque royalty systems, and weak enforcement of intellectual property (IP) rights. In response to these challenges, on January 28, 2025 and February 7, 2025, the Nigerian government introduced two key regulatory instruments – the Collective Management Regulations, 2025, and the Proceeds of Crime (Designation of the Nigerian Copyright Commission as a Relevant Organisation) Order 2025, respectively.
This article examines both regulatory instruments and the structural and institutional hurdles that may influence their effectiveness. By situating these reforms within the broader legal and economic landscape, the analysis explores how Nigeria can build a more equitable and sustainable environment for its creatives. The Collective Management Regulations 2025 (CMR)Under the Copyright Act 2022, a Collective Management Organisation (CMO) is an entity that represents copyright owners and is primarily responsible for negotiating and granting licenses, as well as collecting and distributing royalties for the use of copyright works. Key Provisions of the CMR 20251. Grant of Approvals The CMR provides for the application and approval for operation as a CMO in the form prescribed in the first schedule to the Regulations.
The initial license granted is valid for 5 years, renewable every 3 years with updated documents. An application for renewal must be submitted not later than 3 months before the expiration of the current approval and must include documents as required by the CMR. 2. Mandate and RightsUnder the CMR 2025, authorization by a Rights owner for a CMO to manage their rights must be by written consent for each right, category of right or type of works, that the CMO is authorized to manage. The CMR also provides for the authorization of one or more CMOs by a rights owner, provided that the same right is not granted to multiple CMOs within the same territory. 3. Withdrawal of MembershipThe 2007 Regulations allowed members or rights holders to withdraw from CMO with Notice.
However, the CMR 2025 further provides that any licensing contract concluded by the CMO at the time of or prior to the withdrawal of membership or mandate is valid until the end of the financial year in which the Notice is given. Additionally, a member who withdraws their membership shall retain rights in the distribution process and in the administration and financial information provided by the CMO for the rest of the financial year. 4. Tariff DeterminationThe CMR 2025 vests the responsibility for setting tariffs for licenses granted for the use of copyright works in the CMO. Upon determination, the tariffs must be submitted to the Nigerian Copyright Commission (NCC) along with a justification statement.
Additionally, if a licensee is unable to utilize a license due to the CMO’s negligence, misrepresentation, or other breach, the CMO is required to refund any licensing fees paid. 5. Distribution PoliciesUnder CMR 2025, a CMO shall distribute the royalties collected to its members in a manner that reflects the actual usage of work covered by its repertoire. The payments and distributions are to be made not later than 3 months after the end of the financial year in which royalties are collected, unless objective reasons prevent it from meeting this deadline. 6. Avoidance of Conflict of InterestThe CMR 2025 requires the CMO to establish internal guidelines for the avoidance of conflict of interest. The Governing Board of the CMO is to ensure compliance with the established guidelines.7.
Revenue DeductionsThe CMR 2025 allows CMOs to deduct from the royalties and income they collect or receive amounts necessary to cover administrative expenses, provided that such deductions do not exceed 30% of the total royalties and income received in the year the deduction is made. Any deduction exceeding this 30% threshold must be authorized by a resolution of the general assembly. Furthermore, where a CMO exceeds the authorised expenditure limit, it shall be subject to sanctions as prescribed by the regulation.8. Complaints and Dispute Resolution ProceduresUnder the CMR 2025, where a dispute arises between a CMO and a user or a CMO and any other CMO in respect of the performance of the functions of the CMO, such dispute may be referred to a dispute resolution panel established under section 90 of the Copyright Act.
Proceeds of Crime (Designation of the Nigerian Copyright Commission as a Relevant Organisation) Order 2025. This Order authorizes the NCC to act as a Relevant Organisation under the Proceeds of Crime (Recovery and Management) Act, 2022, for the recovery of financial proceeds generated from copyright-related crimes, such as piracy, unauthorized distribution, and counterfeiting., This move aligns with Nigeria’s broader strategy to combat economic crimes through frameworks like the Proceeds of Crime Act (POCA). Key Features of the Designation1. Asset RecoveryThe NCC may gain the authority to launch investigations or refer cases for asset forfeiture, targeting profits from piracy and illegal licensing. 2.
Inter-agency CollaborationThe designation likely formalizes the NCC’s role within Nigeria’s anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks, aligning with standards set by the Financial Action Task Force (FATF). 3. Focus on Digital ProceedsGiven the rise in online piracy, the NCC may be tasked with tracing revenues from digital sources, such as cryptocurrency payments or advertising from pirate websites. 4. Restitution for CreatorsRecovered proceeds might be redistributed to rights holders as compensation, similar to victim-focused approaches used in jurisdictions like the UK.
