NIGERIA'S 2025 COLLECTIVE MANAGEMENT REGULATIONS: A COMPREHENSIVE ANALYSIS.
The Nigerian Copyright Commission (NCC) has introduced the Collective Management Regulations, 2025, pursuant to the Copyright Act, 2022. Published on January 28, 2025, these regulations establish a comprehensive framework governing the operations, transparency, and accountability of Collective Management Organizations (CMOs) in Nigeria. The Collective Management Regulations, 2025 also replaces the Copyright (Collective Management Organisations) Regulations of 2007.
This analysis examines the key provisions that rights holders should understand to maximize protection of their creative works and ensure proper compensation.
Table Of Contents
- What are Collective Management Organizations
- Regulatory Framework and Approval Process
- Rights Owner Protections
- Financial Accountability and Transparency
- Governance Requirements and Leadership Standards
- Distribution Policies and Usage-Based Remuneration
- Inter-CMO Relations and International Cooperation
- Prohibited Practices and Ethical Standards
- Comprehensive Dispute Resolution Framework
- Additional Regulatory Provisions
- Practical Implications for Nigerian Creators
- Conclusion
What are Collective Management Organizations
CMOs serve as intermediaries between rights owners and users of copyrighted works, managing the licensing, collection, and distribution of royalties. For creators in Nigeria’s vibrant creative sectors; music, literature, film, and visual arts; these organizations play an important role in monetizing intellectual property. The 2025 Regulations aim to strengthen this system through enhanced oversight and clearly defined operational standards.
Regulatory Framework and Approval Process
The 2025 Regulations institute a stringent approval mechanism for CMOs, designed to ensure that only qualified organizations manage copyright interests:
- CMOs must obtain approval from the Nigeria Copyright Commission (NCC) for an initial period of five years, with subsequent renewals required every three years thereafter.
- Applications may be rejected if the applicant fails to meet statutory requirements, provides false information, or if approval would cause a conflict with the operations of an existing CMO(s) operating in the same field.
- The Commission also retains power to revoke approvals for violations including non-compliance with regulations, failure to meet financial obligations, or engagement in fraudulent activities.
This regulatory framework ensures that there is continuous oversight of the operations and activities of CMOs and thus preventing the operation of unauthorized entities that could exploit rights owners.
Rights Owner Protections
A cornerstone of the 2025 Regulations is the establishment of strong protections for rights owners through the following provisions:
- CMOs must clearly define who can join them, establish fair membership terms, and document procedures for withdrawal.
- CMOs must also grant rights owners the right of withdrawal. These regulations ensure that rights owners maintain the freedom to withdraw their membership at any time while preserving entitlement to accrued royalties during the withdrawal process. The provisions on withdrawal rights also ensure that the CMO is given adequate time to perform post withdrawal obligations, while still entitling the rights owner to royalties until the end of the year in which withdrawal notice was given.
- CMOs must furnish members with annual reports detailing financial performance, distribution policies, and Governing Board activities.
- Members receive voting rights proportionate to their stake, ensuring representation in organizational decision-making.
These provisions are a significant advancement in member protection when compared to the protections offered under the previous Regulations of 2007. The new regulations empower creators with greater control over how their rights are managed.
Financial Accountability and Transparency
The regulations institute comprehensive financial controls specifically designed to prevent misappropriation of royalties. Some of the important regulations that ensures that there is financial accountability and transparency in the financial affairs of a CMO are:
- CMOs must maintain separate accounts for royalties and operational funds, preventing commingling of member monies with organizational expenses.
- Royalty distribution must occur within three months following the financial year, creating predictable income streams for rights owners.
- Deductions for administrative expenses are capped at 30% of total collections, with any higher percentages requiring an explicit approval by the General Assembly of the CMO.
- Funds unclaimed for seven years must be held in a holding account after which they may be reallocated only after documented efforts to locate rightful owners, including public notices and database searches.
- CMOs must also submit audited financial statements to the NCC annually on the 1st of July, including detailed accounting of collections, distributions, and operational expenses.
It is hoped that these new financial safeguards will address historical concerns regarding transparency in the operations of CMO by establishing clear accountability for the management of creator’s earnings.
Governance Requirements and Leadership Standards
The regulations mandate a structured governance framework. One of the most important aspects and focus of this new Regulations is to prevent conflicts of interest and ensure equitable representation. Highlights of some of the provisions of the Regulations include the following requirements imposed on new CMOs and existing CMOs applying for renewal of their approval under the 2025 Regulations include the following:
- CMOs must establish both a General Assembly of members and a Governing Board with oversight responsibilities over the conduct of the affairs of the CMOs.
- The Governing Board must include rights owner representatives to ensure member interests are protected in decision-making.
- The Chairman of the Board may serve maximum term of eight years. This ensures that there is a prevention of entrenchment of leadership.
- Board members must disclose potential conflicts and recuse themselves from related decisions.
- The Governing Board of the CMO shall be responsible for the appointment of a Chief Executive Officer who shall be responsible for day-to-day operations of the CMO, under the supervision of the Governing Board.
These governance requirements promote professional management while maintaining member oversight, creating checks and balances against potential abuse of authority.
Distribution Policies and Usage-Based Remuneration
CMOs must implement distribution methodologies based on objective usage data. By the 2025 Regulations, distribution must proportionally reflect the actual utilization of works rather than arbitrary allocation. Also, CMOs are required to maintain comprehensive records of usage data, licensing agreements, and distribution calculations.
The Regulations prevent the use of or application of collected Royalties to any other purpose other than being applied toward member distributions and towards administrative expenses which must be authorized by the General Assembly. The Regulations also requires that distribution policies be fully disclosed to members and subject to approval by the General Assembly.
This usage-based approach ensures equitable compensation reflective of market utilization of creative works, rather than the adoption of potentially subjective allocation methods.
Inter-CMO Relations and International Cooperation
The 2025 regulations also facilitate collaborative arrangements while preventing anti-competitive practices. Some of the provisions in this regards include the following;
- CMOs may enter into representation agreements with any other domestic or international counterparts to enhance rights management.
- CMOs Participating in inter-CMO cooperation or international cooperation must share repertoire data, calculation methodologies, and distribution formulas.
- CMOs are also prohibited from interfering with each other’s operations or engaging in anti-competitive practices.
- The 2025 regulations also establish parameters for international royalty transfers, ensuring Nigerian creators receive compensation for usage of their works all over the world.
These provisions position Nigerian CMOs to participate effectively in the international copyright ecosystem while maintaining competitive integrity domestically.
Prohibited Practices and Ethical Standards
The regulations explicitly forbid practices that would undermine the integrity of collective management. Some of the conducts prohibited include the following:
- CMOs cannot grant licenses for works outside their authorized repertoire.
- Collecting royalties for unauthorized works is expressly prohibited.
- CMOs are prohibited from misrepresenting the scope or nature of their catalogs.
- All members and licensees must receive fair and equitable treatment regarding terms and conditions.
- CMOs are also prevented from unduly pressuring users against licensing with competing organizations.
These prohibitions establish clear ethical boundaries for CMO operations, protecting both rights owners and rights users from potential exploitation.
Comprehensive Dispute Resolution Framework
The regulations establish multi-layered mechanisms for addressing grievances including internal complaints procedures, documented decisions, intervention by the NCC and formal adjudication by the Dispute Resolution Panel established by and under the Copyright Act of 2022.
Under the regulations, CMOs must implement formal processes for handling member complaints. Where a complaint is rejected by a CMO, the reason for such rejection shall be provided to the complainant within 30 days.
Any dispute that remains unresolved following internal procedures may be referred to the Commission (NCC) for administrative resolution. However where the disputes are of a complex nature, such as disputes between CMOs or with users, such disputes may then be referred to the Dispute Resolution Panel established under the Copyright Act.
This framework ensures accessibility to justice without necessitating immediate recourse to courts, providing cost-effective resolution pathways.
Additional Regulatory Provisions
Other significant elements of the regulations include:
- CMOs must adhere to Nigerian data protection laws regarding personal information of rights owners.
- CMOs may allocate up to 10% of annual collections for social, cultural, or educational initiatives benefiting the creative community, subject to approval by the General Assembly.
- The NCC may implement escalating enforcement measures including warnings, fines, suspensions, and disqualifications for non-compliant CMOs. Fines under the regulations range from N200,000.00 (two hundred thousand Naira) to N500,000.00 (Five Hundred Thousand Naira). For refusal to pay any fine imposed under this regulation, the regulations allows further fines of N50,
000.00 (fifty thousand Naira) per day that the fine remains unpaid. - Existing CMOs licensed or authorised under the 2007 regulations may continue operations as though they were granted approval under the 2025 regulations, until the existing and current approval period elapses, upon which any CMO applying for renewal must subsequently comply with the 2025 Regulations.
Practical Implications for Nigerian Creators
These regulations introduce several practical benefits for rights owners:
- The financial controls introduced under the 2025 regulations reduce the risk of misappropriation of funds of the CMO or delayed payments of royalties.
- Mandatory reporting requirements provide an insight into how royalties are calculated and distributed to rights owners.
- Voting rights and governance representation give creators more influence over the operations of CMOs that they are members of.
- The structured or tiered complaint system provides accessible remedies for rights-related disputes.
- Compliance with global standards facilitates cross-border rights management and royalty collection.
Conclusion
The Collective Management Regulations of 2025 represents a significant advancement in Nigeria’s copyright management system by establishing comprehensive standards that align with international best practices. By strengthening transparency, accountability, and fair treatment of rights owners, these regulations aim to foster a more equitable and fair creative economy where proper compensation reaches creators while maintaining efficient licensing mechanisms for users.
Rights holders are advised to familiarize themselves thoroughly with these provisions, engage actively with their respective CMOs, and exercise their governance rights to ensure the regulations achieve their intended purpose of protecting creative interests in
Nigeria’s rapidly evolving intellectual property landscape.
Abdulbasit Usman, Esq.
21st Street Legal Practitioners
This article is for informational purposes only and should not be construed as legal advice. For specific guidance regarding your situation, please consult with a qualified legal professional.
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