Throwing a Party in Nigeria? You May Need a Licence

In the Nigerian nightlife and party space, music is the centerpiece, particularly in an era where “Afrobeats to the world” is reaching its peak and more robust structures for financial investment in the industry are emerging. Music is not just sound; it is an experience that elevates events and parties, and event organisers are increasingly learning to focus on the potential of Nigerian music as a commercial and cultural driver. It is therefore surprising that the licensing side of music continues to receive very little attention. This article provides a brief overview of the legal framework governing music licensing, with specific reference to the Copyright Act 2022. It also sheds light on collective management organisations and the role they play in the rights management of artistes, particularly within the Nigerian nightlife context, with a focus on the Musical Copyright Society of Nigeria (MCSN), a prominent CMO operating in Nigeria. Finally, the article examines how to obtain a licence from the organisation and the potential liabilities that may arise in the event of default.

Why this matters

Sections 9 and 12 of the Nigeria Copyright Act protects musical works and performers’ rights. 

Copyright owners retain the exclusive right, amongst other rights, to publicly perform their works or authorize same to a 3rd party. Therefore in the given circumstance, playing a music set at a party or an event will fall under the purview of public performance, and will constitute a contravention where the creator’s permission has not been sought.  

Like earlier mentioned, it is within the rights of a copyright owner to issue licenses to 3rd parties for the use of their work. Usually, such licenses come in the form of a contractual agreement between both parties, stipulating the extent of the use that is granted to the licensing, and other relevant details. However, in the instant case of nightlife parties and events, how practical is it to have direct licensing agreements and remuneration negotiations between creators and event organizers, considering there are hundreds of events taking place in a month? 

This is where Collective Management Organizations (CMOs) enter the picture. CMOs are often not-for-profit enterprises. By authorizing CMOs to manage their rights, authors, performers, producers and other right holders can simplify the management of those rights. Basically, a CMO:

• monitors when, where and what works are used;
• negotiates tariffs and other conditions with users;
• licenses the use of protected works on behalf of its members and of other rights holders it represents; and
• collects the fees from users and distributes these to the rights holders.

CMOs such as the Musical Copyright Soceity Nigeria (MCSN), administer licences for public/commercial use of music and they require licences to be obtained before the use begins. Failure to obtain the appropriate licence, may result in fines, event shutdowns, equipment seizure, claims and even criminal prosecution. 

Who is liable upon default

A common mistake is thinking that only the DJ or only the organiser is responsible. In practice, the law looks at who benefits from and controls the use of the music. That means liability can attach to:

• the DJ playing the music,

• the event organiser or promoter,
• the venue owner or operator,
• and even brands or sponsors hosting or activating the event.

Common Misconceptions

There are a few recurring misunderstandings that expose people to unnecessary risk:

“The DJ has a licence, so the event is covered.”
Not necessarily. If you are organising, hosting or profiting from the event, you may still be treated as a user.

“The venue already pays MCSN.”
Some venues have blanket licences, some don’t, and many licences do not automatically extend to special or ticketed events. This must be confirmed in writing.

“It’s invite-only, so it’s private.”
An invite-only event can still be a public performance if it is organised, promoted or commercial in nature.

“We didn’t charge tickets.”
Charging tickets is not the only test. Brand activations, sponsored parties and promotional events can still be commercial uses of music.

These assumptions are where problems usually start and ignorance is not a tenable excuse.

How to Obtain the MCSN license

Luckily, obtaining the MCSN license is a straight forward process:

1. Visit the MCSN website
2. Fill the license request form for music users
3. Upon review, you will be required to pay the required fees and receive your certificate.

Possible Risks of Non-Compliance

The MCSN and the Nigerian Copyright Commission (NCC) has repeatedly issued warnings to DJs and event centres, hosts etc on the need to obtain the required licenses. This is to avoid stories that touch when non-compliance is detected. 

Remember, the costs of non-compliance is not always monetary.

Obtaining the MSCN license ahead of your event will help you: 

• prevent last-minute demands or embarrassment,
• protect relationships with venues and sponsors,
• and allow you to carry out entertainment activities as a proper business person.

For brands and sponsors especially, compliance issues can create reputational risk far beyond a single event.

How We Can Help

Sedah Advisory works with DJs, event organisers, venues and brands to:

• assess whether an event requires an MCSN licence,
• engage with licensing bodies where necessary
• and structure responsibilities clearly to reduce exposure.

In addition, if you are hosting parties regularly, or operating in the entertainment space, there are other compliance obligations that may be required of you. We are able to ensure total compliance to allow for smooth business operations.

Authors

Jesuye J. Ogunyemi Esq.

Lily O. Faluyi Esq.