Federal High Court Halts Disbursement Of MCSN Levy Payments
Interim Injunction Granted in Lagos
JUSTICE Ambrose Lewis-Allagoa of the Federal High Court, Lagos Division, has issued an interim Mareva injunction freezing copyright levy funds payable to the Musical Copyright Society of Nigeria (MCSN).
The order restrains the Central Bank of Nigeria (CBN) and no fewer than 20 commercial banks from disbursing or releasing the funds pending further hearing in the matter.
The ruling followed an ex parte application brought before the court by the Record Label Proprietors’ Initiative and 11 leading record labels and music companies.
Record Labels Challenge Disbursement
Among the plaintiffs are Mavin Records and Davido Music Worldwide, alongside other music industry stakeholders. The second to twelfth plaintiffs are suing through their attorney, the Record Label Proprietors’ Initiative.
In the motion ex parte argued by counsel Oragwu Nnamdi, the applicants sought an order preventing the CBN from releasing, transferring or otherwise paying out any copyright levy funds attributable to sound recordings and earmarked for MCSN, pending the hearing of a motion on notice.
They further requested that MCSN, its agents or privies be restrained from receiving, accessing, withdrawing or dissipating any such funds—whether directly disbursed by the apex bank or routed through commercial banks.
Preservation and Disclosure Orders
In granting the application, Justice Lewis-Allagoa directed the CBN and the listed commercial banks to preserve the disputed funds and file affidavits of compliance within three days of service of the order. The affidavits must disclose the sums standing to the credit of MCSN in respect of the levy payments.
The court also ordered MCSN to render an account of the funds and refrain from any dealings with them pending the determination of the motion on notice.
The matter has been adjourned to 12 March 2026, for hearing of the substantive motion.
Legal analysts note that Mareva injunctions are typically granted to prevent the potential dissipation of disputed funds before a court reaches a final decision.
