Copyright levy reform directs 50 percent collections to artists
Life & Arts

Copyright levy reform directs 50 percent collections to artists

By Advocate | July 20, 2026 | 3 min read |

A reformed copyright levy system will funnel half of all collections directly to rights owners, comprising artists and record labels, following work completed by ministers from multiple government agencies. Obi…

A reformed copyright levy system will funnel half of all collections directly to rights owners, comprising artists and record labels, following work completed by ministers from multiple government agencies. Obi Asika, the National Council for Arts and Culture's director-general, unveiled the changes at the Africa Music Business Roundtable 2026, calling it a major structural achievement that guarantees creators access to money they've previously lost.

An additional 20 percent of collections will flow to the Creative Infrastructure Trust Company, a newly established entity designed to support the broader creative sector. Asika said the overhaul emerged from coordinated efforts involving the Minister of Justice and Attorney General, the Solicitor General, and the Minister of Arts, Culture, and the Creative Economy.

"We are a joint working ministerial team looking at that copyright levy to reform it. We have completed that mission," he told attendees.

He stressed that this marks the first time parliament has legislated copyright collection at such a comprehensive level.

The Creative Infrastructure Trust Company operates as a special purpose vehicle housed within the ministry but structured as a public-private partnership. Asika explained the rationale: "CITco is an SPV, a special purpose vehicle, created from the minister's office.

But again, because we are mindful of public-private partnerships, it's a PPP."

Funding will come through partnerships with institutions like the African Development Bank and Afrexim Bank, positioning the entity as independent yet government-aligned. The structure keeps it separate from direct state control while maintaining public interest oversight.

The levy reform sits within wider moves to plug holes in creative industry revenue streams. Asika identified domestic touring as perhaps the single biggest untapped opportunity for artists and promoters across Nigeria.

He pointed to the nation's physical infrastructure: more than 12,000 hotels equipped with function halls, over 600 universities with stadiums and student union spaces, and roughly 40 major stadiums nationwide. Artists can begin performing in intimate bars and clubs hosting 100 to 200 people, then progress toward larger ticketed shows as their fan bases grow.

"Some of the greatest musicians are sitting in hotel bars around the country playing cover songs every night. And they've got incredible voices," Asika observed.

The missing ingredient, he suggested, is artist discipline around developing distinct properties and brands that audiences genuinely want to engage with.

He cited live ticketing data revealing 13 million tickets sold nationally since 1989, underscoring the market's potential. "This is a business.

It's about selling tickets," he said, calling for expanded arena construction to unlock additional revenue through live events and sync licensing.

Collective Management Organisations will face tightened governance standards outlined in an upcoming government Gazette, with technology playing a bigger role in ensuring transparency. Artists and labels will access dashboards allowing real-time monitoring of their work without relying on intermediaries.

The National Music Business Council will oversee ancillary rights management, particularly merchandise and branded products. Asika advocated for rights aggregation to strengthen independent artists' negotiating positions with distributors and platforms.

He highlighted an ongoing partnership with Selar.com, Africa's largest creative platform, noting that registration for the On-Site Informal Economy Partnership remains open to creators seeking better market access.

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