UNDERSTANDING THE COPYRIGHT (LEVY) ORDER, 2026: IMPLICATIONS FOR NIGERIA’S CREATIVE ECONOMY
Introduction
On 27th April 2026, the Attorney General of the Federation, pursuant to section 89 of the Copyright Act, 2022, made the Copyright (Levy) Order 2026. The Order establishes a levy regime applicable to specified devices, storage media, equipment and digital services capable of facilitating the reproduction, storage or dissemination of copyright-protected works. The Order seeks to create a compensatory mechanism for copyright owners by requiring contributions from industries whose products and services may be used for copyright infringement.
OVERVIEW OF COPYRIGHT (LEVY) ORDER
Under the current copyright levy regime, a levy of 5% is imposed on specified materials listed in the Schedule to the Order. This includes; DVDs, SD Memory Card, USB Flash Drive, I-Pod, Photocopying Papers, MP3 Player, Mobile Phones, Photocopying Machine, DVD Recorders, Computer External Hard Drive, Personal Computers, Printing Plates, Printers/ Printing Machines, Radio/TV Sets Enabling Recording, Decoder/Signal Receivers, Cloud Services, and Cloud Servers. The levy is payable by importers at the point of entry, manufacturers, producers and assemblers at the point of manufacture, production or assembly, and cloud storage service providers at the point of payment for cloud services.[1] However, the Order exempts goods manufactured solely for export and materials specifically exempted by the Minister in public interest, or for purposes related to copyright exceptions.[2]
Order 4 Rule 2,[3] mandates that levies collected shall be distributed on a quarterly basis and according to the following formula: 50% to rights owners, 20% to building of creative infrastructure and promotion of creativity through the Creative and Tourism Infrastructure Corporation Limited (CITICo), 20% to Nigerian Copyright Commission’s anti-piracy and related programmes, and 10% to administrative expenses of related agencies.
The Order requires that the funds meant for rights owners, be distributed through approved Collective Management Organisations (CMOs), or other representatives of rights owners in accordance with NCC-approved distribution policies, and where funds are to be applied for collective benefits rather than direct distribution, the prior approval of the Nigerian Copyright Commission (NCC) must be obtained. The Rules further require CMOs to allocate funds among the various categories of rights owners in a fair, transparent and non-discriminatory manner, permit the use of a portion of levy revenues for cultural and social purposes benefiting members, mandate periodic reporting to the NCC on distributions and allocations, and limit administrative deductions to not more than 15% of the total royalties and income received in the relevant year, subject to NCC review.[4]
The Order also establishes a Copyright Levy Coordinating Committee and grants enforcement powers to the Nigerian Copyright Commission, including inspection, confiscation, and sealing powers where levy obligations are not fulfilled.[5] Finally, it revokes the Copyright (Levy on Materials) Order, 2021.[6]
Conclusion
The Copyright (Levy) Order, 2026 represents a major step in the implementation of section 89 of the Copyright Act, 2022. By establishing a levy regime adapted to both physical and digital technologies, the Order seeks to strengthen compensation mechanisms for copyright owners.
For copyright owners, the Order creates an additional source of revenue. Collective Management Organizations will play a central role in administering distributions and ensuring compliance with transparency requirements. Technology importers, manufacturers, assemblers, and cloud service providers will face new compliance obligations, record-keeping duties, and additional operational costs associated with the levy regime. Consumers may experience indirect effects through increased product and service prices.
Ultimately, the Copyright (Levy) Order, 2026 seeks to balance compensation for rights holders, funding for anti-piracy initiatives, and investment in creative industry development. Its long-term success will depend on effective implementation, transparent administration, and equitable distribution of levy proceeds.
[1] Order 1 Rule 2(a), (b) & (c)
[2] Order 2 Rule 3
[3] Copyright (Levy) Order 2026
[4] Order 4 Rules 3, 4, 5, 6, 7, 8, 9, & 10.
[5] Orders 5 and 6
[6] Order 7
