The Federal High Court in Lagos has ordered the freezing of N1.2 billion in copyright levy funds payable to the Musical Copyright Society of Nigeria (MCSN), pending the determination of a substantive application before the court.
Justice Ambrose Lewis-Allagoa granted an interim Mareva injunction restraining the Central Bank of Nigeria (CBN) and no fewer than 20 commercial banks from disbursing or releasing the disputed funds.
The order followed an ex-parte application filed on February 5, 2026, in Suit No. FHC/L/CS/207/2026 by the 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 second to 12th plaintiffs instituted the action through their lawful attorney, Record Label Proprietors’ Initiative.
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In the motion ex parte, filed and argued by their counsel, Oragwu Nnamdi, the applicants 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 prayed the court to restrain MCSN, its agents, servants or privies from receiving, accessing, withdrawing, transferring, dissipating or otherwise dealing with the levy funds, whether paid directly by the CBN or routed through commercial banks.
The plaintiffs also requested that the apex bank and the affected financial institutions be directed to preserve the funds and 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.
Ruling on 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 equally barred MCSN from receiving, accessing, utilising, withdrawing, transferring, converting, dissipating or otherwise dealing with the funds, whether already received or yet to be disbursed.
In addition, 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 MCSN’s credit in respect of levy payments earmarked for disbursement or already disbursed.
The court further 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 further dealings with them pending the hearing of the Motion on Notice.
The supporting affidavit was deposed to by Dr. Chinedu Chukwuji of Lekki, Lagos.
After hearing submissions from counsel to the plaintiffs, the court granted the orders as prayed and adjourned the matter to March 12, 2026, for hearing of the Motion on Notice.
