The Collective Management Regulations, 2025 (S.I. No. 17), published in the Federal Republic of Nigeria Official Gazette on January 28th, 2025, represents a significant advancement in Nigeria's copyright ecosystem. Promulgated under the authority vested in the Nigerian Copyright Commission (NCC) by the Copyright Act, 2022, these regulations establish a comprehensive legal framework governing the operation, accountability, and governance of Collective Management Organisations (CMOs).1 A CMO is defined within the regulation as "an organisation representing copyright owners, which has as its principal objectives the negotiating and granting of licenses, collecting and distributing of royalties in respect of copyright works."
While the Copyright Act, 2022 laid the groundwork for CMOs, the Collective Management Regulations, 2025 are designed to enhance governance and accountability, thereby better serving the operational needs of these vital organisations within Nigeria. Specifically, these regulations aim to improve the structures and transparency surrounding the collection and distribution of royalties to rights holders, such as musicians and authors.
This regulatory initiative is part of a broader reform effort within Nigeria's intellectual property (IP) legal framework, as emphasised by Dr. John Asein, Director-General of the NCC. This comprehensive reform includes legislation like the Proceeds of Crime (Designation of Nigerian Copyright), demonstrating a commitment to robust IP enforcement and the realisation of associated economic benefits. The Collective Management Regulations directly address long-standing concerns levelled against CMOs in Nigeria, including issues pertaining to delayed royalty payments, inadequate financial transparency, and internal governance disputes.2
This article critically reviews the Collective Management Regulations, 2025, highlighting key innovations and their potential impact on Nigeria's creative industries. The analysis focuses on the regulations' structure, purpose, legal and institutional implications, and overall contribution to a more effective and equitable copyright environment.
1. Purpose and Legal Foundation
The objective, as stated in Regulation 1, is to establish a legal structure for the approval, membership, management, and responsibilities of CMOs. These organisations serve as intermediaries that manage the rights of copyright holders, particularly authors, musicians, filmmakers, and other creatives, ensuring they are compensated when their works are exploited.
This regulation is grounded in multiple sections of the Copyright Act, 2022 (notably sections 78, 88, and 97), showing legislative intent to formalise and professionalise the collective management space. By providing specific conditions for the grant, revocation, and renewal of approval, the regulations ensure a robust system for evaluating and monitoring CMOs.
Also read: Arbitrability of Intellectual Property Rights in Nigeria: Lessons for the Creative Industry
2. Regulatory Structure and Governance
The arrangement of regulations (1–36)3 covers a wide range of institutional and operational concerns. Noteworthy highlights include:
- Grant and Revocation of Approval (Regulations 3–4): These lay down stringent documentation requirements and detailed criteria for evaluating CMOs. Particularly laudable is the requirement for the signed consent of at least 100 right owners, which fosters legitimacy and discourages sham CMOs.
- Renewal Conditions (Regulation 5): The renewal of approval is contingent upon compliance with regulatory and financial reporting obligations, promoting accountability.
- Governance and Internal Supervision (Regulations 17–19): These provisions reflect global best practices, emphasising transparency, board oversight, and conflict-of-interest avoidance
3. Member and User Protections
The regulations take significant steps to protect the interests of both rights owners (members) and users:
- Eligibility and Membership Rights (Regulations 6–11)4: By mandating equitable treatment and clearly defining membership rights, the regulations empower creatives to actively participate in the management of their rights.
- Tariff Setting and Licensing (Regulations 14–15): These ensure that CMOs operate transparently in negotiations with users and that tariffs are fair, addressing longstanding complaints of arbitrary fee structures.
- Distribution and Financial Integrity (Regulations 24–25): These rules on revenue distribution and deductions ensure that CMOs do not exploit their intermediary position to the detriment of members.
4. Enhanced Accountability and Transparency Standards:
Perhaps the most progressive aspects of the Collective Management Regulations, 2025 (CMR 2025) are the stringent financial and data management obligations outlined in Regulations 20-23 and 27. By introducing measures such as:
- Split and Holding Accounts:
- Annual Reporting:
- Audit Requirements:
The regulations significantly reduce the potential for mismanagement. This strengthened framework is further reinforced by Regulation 26, which mandates a clear complaint and dispute resolution procedure, thereby aligning Nigerian CMO practices with international standards of corporate governance.5
These rigorous governance and financial accountability requirements directly address historical issues of mismanagement and a lack of transparency within CMOs. Section 22 of the CMR 2025 mandates that CMOs maintain accounts consistent with standard accounting practices, thereby enabling and improving transparency. Furthermore, the regulations provide for consequences; should any CMO be found in breach of the provisions, the Nigerian Copyright Commission (NCC) is empowered to issue queries, directives, or sanctions in line with the regulations. Regular audits, conducted either by the NCC or independent bodies, may be required, with penalties for non-compliance ranging from license suspension and written cautions to disqualification from holding office within a CMO. This multi-layered approach to accountability signifies a significant step towards fostering trust and efficiency within the Nigerian collective rights management system.6
Also read: INTELLECTUAL PROPERTY PORTFOLIO MANAGEMENT: How to Protect and Leverage Your IP Assets and Brands
5. Ethics, Sanctions, and Enforcement
The regulations not only promote compliance but also incorporate a credible enforcement regime:
- Prohibition of Unethical Practices (Reg. 28) and
- Sanctions and Enforcement (Reg. 31–32) empower the Nigerian Copyright Commission to act decisively against errant CMOs.
Also, transitional provisions (Reg. 35) ensure that pre-existing CMOs are brought into compliance, preventing regulatory arbitrage.
6. Streamlined Dispute Resolution Mechanisms
The regulations establish formalised, time-bound processes for resolving disputes between CMOs, rights holders, and users, reducing reliance on lengthy court battles. A dispute resolution panel can now be made available, and the dispute referred to the dispute resolution panel.7 Also, building on Section 89 of the Copyright Act 2022, which provides for an NCC Dispute Resolution Panel, the regulations set specific timelines (e.g., 60 days, similar to Singapore's 2023 CMO Regulations) for resolving issues like royalty disputes or licensing disagreements.8
Also read: Securing Creative Assets and Intellectual Property: Legal Measures Against Digital Piracy
7. Empowerment of Rights Holders
The regulations strengthen rights holders' ability to choose, monitor, and exit CMOs, promoting competition and creator-centric governance. Rights holders may freely select their CMO or manage rights independently, overturning the restrictive single-CMO policy (pre-2017) that favoured COSON.9 CMOs are now encouraged to provide clear membership agreements and royalty distribution policies, ensuring transparency, as recommended by the EU's Collective Rights Management Directive (2014/26/EU). The regulations allow rights holders to challenge royalty distribution criteria, as established in Green Light v. Copyright Society (2021).10
Critical Evaluation and Recommendations11
While the Collective Management Regulations 2025 are commendably comprehensive and provide a much-needed framework for a sector previously plagued by opacity, certain practical issues require attention:
- Capacity of the Nigerian Copyright Commission: For effective enforcement, the Commission must be adequately staffed and resourced.
- Judicial Oversight: There is little mention of recourse to judicial review in cases of revocation or non-renewal of approval. Future iterations should ensure that affected parties have clear access to redress mechanisms.
- Awareness and Training: Many copyright owners in Nigeria operate in informal economies and may not fully understand their rights. Implementing these regulations successfully will require widespread sensitisation campaigns.
Conclusion
The Collective Management Regulations 2025 mark a transformative advancement for Nigeria's copyright ecosystem, introducing critical innovations that modernise the CMO system. These include enhanced accountability mechanisms, provisions for digital licensing, streamlined dispute resolution processes, greater empowerment for rights holders, improved frameworks for cross-border royalty collection, a focus on technology-driven operations, broader sector coverage, and integration with broader intellectual property enforcement efforts. By addressing historical challenges and aligning with global best practices, these reforms hold the potential to significantly improve the earnings and rights protection of Nigerian creatives, fostering investor confidence and bolstering the country's reputation within global intellectual property circles.
Successful implementation, however, hinges on several key factors. Robust enforcement by the NCC, proactive engagement with all stakeholders, and sustained investment in digital infrastructure are crucial to realising the regulations' full potential. The Collective Management Regulations 2025 should be viewed not as a static end point, but as a dynamic instrument for strengthening Nigeria's cultural economy and fostering a thriving creative environment in the digital age. Institutional transparency and ongoing stakeholder education will be vital to ensuring that the regulations serve their intended purpose and contribute to a more equitable and prosperous future for Nigerian artists and creators.
Footnotes
1 Section 1 Collective Management Regulation 2025
2 Section 1 Collective Management Regulation 2025
3 Collective Management Regulation 2025
4 Ibid
5 Section 22 Collective Management Regulation 2025
6 Section 31 Collective Management Regulations 2025
7 Section 90 Copyright Act 2022
9 Ibid.
10 https://academic.oup.com/grurint/article-abstract/70/11/1102/6263471?redirectedFrom=fulltext
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