News
Federal High Court Strikes Down NBC’s 2.5% Gross Income Levy on MultiChoice
Justice James Omotosho of the Federal High Court Abuja has struck down Section 2 (10) (b) of the National Broadcasting Code, 6th Edition, which required broadcasters to pay 2.5% of their “Gross Annual Income” as an Annual Operating Levy.
This judgement followed a suit filed by MultiChoice Nigeria Ltd and Details Nigeria Limited (GO TV) against the National Broadcasting Commission (NBC).
Delivering judgement on Wednesday, Justice Omotosho, ordered that the provision be struck down and replaced with ‘Net Annual Income’ instead of the existing ‘Gross Annual Income.’
The court also barred the National Broadcasting Commission (NBC) from demanding the plaintiffs’ VAT remittance, FIRS reports, bank statements, audit adjustment journals, trial balances, and general ledgers for the purpose of computing the plaintiffs’ annual income, other than the annual audited accounts of the companies as stipulated in the NBC Code.
The judge stated that the NBC can only access the other financial documents of MultiChoice through sister agencies such as the Federal Inland Revenue Service (FIRS).
In the suit, the plaintiffs’ counsel, Moyosore Onigbanjo, SAN, sought several reliefs, including a determination of whether the NBC had the authority to demand any financial documents other than the annual audited accounts.
He also sought clarification on whether the term “gross annual income,” as used in the NBC Code, was fair and equitable.
“Income, as provided by the NBC Code 6th Edition, is not defined, nor is it defined in any previous editions or in the NBC Act of 2004,” the counsel submitted in court.
Onigbanjo also asked the court to determine whether the waiver or agreement between the plaintiffs and the NBC to pay a flat rate of N800,000,000 (Eight Hundred Million Naira) as Annual Operating Levy for the years 2020–2023, including certain previous years, was binding on both parties.
Counsel to the NBC, Victor Ogude SAN, argued before the court that the agreement was not binding on the NBC, as the NBC’s acting Director-General who entered into the agreement on its behalf acted beyond his powers.
He contended that the NBC was entitled to the full amount payable.
Ogude also urged the court to uphold the NBC’s oversight role over MultiChoice and Details Nigeria.
Delivering his verdict on Wednesday, Justice Omotosho, said with his experience as a trained economics teacher, running a business like the one operated by the plaintiffs requires significant capital and expenses. It is only fair, he said, that these expenses be deducted before the Annual Operating Levy is paid.
He stated that net income is the actual profit after subtracting all business expenses, adding that the taxable amount cannot be determined when calculating gross profit but should be based on net profit.
The judge emphasized that the Annual Operating Levy charged by the NBC is a form of tax imposed on broadcasters.
He held that it would be unjust to impose it on their gross income.
“The proper and lawful income to impose a levy on is the net income,” he said, adding that this aligns with tax laws and global best practices. “In the United States, for instance, companies pay a flat rate of 21% on their profits, determined after all expenses have been deducted. Similarly, in the United Kingdom, a 25% corporation tax is imposed on company profits.”
“From this Court’s knowledge of economics, gross income implies all money that accrues to a person or business within a specific time. This gross income typically does not account for company expenditures such as production costs, rent, vendor payments, staff salaries, taxes, and other costs. It is only after all these payments are made that the company determines its profit, known as net income.”
“Consequently, this Court holds that Section 2 (10) (b) of the National Broadcasting Code, 6th Edition, which demands 2.5% of Gross Annual Income from broadcasters as an Annual Operating Levy, is unconscionable, unfair, and stifling to the plaintiffs,” Omotosho ruled.
Furthermore, Omotosho noted that the plaintiffs had provided credible and documentary evidence showing they had faithfully paid their Annual Operating Levy (AOL) without fail, and the defendant did not challenge these documents.
He said the NBC’s claim that it was entitled to N4 billion, as stated in its letter dated August 15, 2023, was unsupported by any evidence.
“Simply basing its claim on the fact that the plaintiffs increased their subscription fees is grossly insufficient. First, there is no evidence before the court that subscription fees were increased. Second, the defendant failed to consider that the plaintiffs may have increased their production costs or incurred additional expenses. This Court refrains from speculation as the defendant has invited it to do,” Omotosho added.
Regarding the agreement, Omotosho ruled that when parties express their intention and enter into a binding agreement, neither party is allowed to abandon the agreement simply because one or more of its terms are unfavorable.
The judge declared that the agreement between the defendant and MultiChoice, or the waiver on the payment of N800,000,000 (Eight Hundred Million Naira) throughout their current “DTH license”, is binding on both parties.
He also restrained the NBC from demanding any additional sum from the plaintiffs as AOL for the years in which they have already made payments.
He issued a perpetual injunction restraining the NBC, its servants, agents, or privies from sanctioning, fining, or suspending the plaintiffs’ license, contrary to the court’s judgment on the issues raised.
By Naeemah Junaid
The National Information Technology Development Agency (NITDA) has held strategic discussions with representatives of Trust Stamp, a NASDAQ-listed global technology company, to explore potential areas of partnership aimed at strengthening Nigeria’s digital trust framework and advancing innovation within the digital economy.
The meeting, chaired by NITDA Director General, Kashifu Inuwa Abdullahi, focused on identifying collaborative opportunities aligned with Nigeria’s digital transformation agenda and the Agency’s strategic priorities for building a secure, inclusive, and innovation-driven digital ecosystem.
Inuwa emphasised that trust remains a critical foundation for the growth of the digital economy, noting that secure systems and strong cybersecurity frameworks are essential for driving innovation, economic growth, and national development. He stated that building trust in digital platforms and services is key to accelerating adoption and unlocking opportunities across sectors.
He reiterated NITDA’s mandate as a regulator to create an enabling environment through forward-looking policies and regulatory frameworks that support innovation rather than promote specific technologies. According to him, government interventions are designed to stimulate markets, create opportunities, and empower both businesses and citizens to participate fully in the digital economy.
The Director General further reaffirmed Nigeria’s openness to investments that strengthen digital infrastructure and enhance digital services, stressing that sustainable national development is best driven by private sector participation under supportive regulatory and policy frameworks. He called for continued engagement to ensure alignment with national priorities and effective integration into Nigeria’s digital ecosystem.
In his remarks, Trust Stamp Vice President, Jonathan Pasha, highlighted the company’s global experience in secure verification and trust technologies, describing its approach as partnership-oriented and focused on delivering long-term value within local ecosystems. He noted that the company prioritises collaboration with governments and private sector stakeholders to address local challenges and expand access to secure digital services.
Pasha referenced Trust Stamp’s ongoing operations in Nigeria, including its collaboration with a telecommunications provider to enhance SIM swap prevention and fraud detection capabilities. He also outlined the firm’s biometric tokenisation technology, which converts biometric data into secure, privacy-preserving representations, enabling verification processes without exposing sensitive information.
He explained that the technology supports secure verification, fraud prevention, financial inclusion initiatives, and the tokenisation of real-world assets, while being designed to function effectively in low-connectivity environments and on low-specification devices to expand access to digital services.
Both parties expressed interest in advancing technical-level discussions to identify specific areas of collaboration aligned with national priorities and Nigeria’s digital transformation objectives.
NITDA reaffirmed its commitment to fostering a secure and trusted digital economy through strategic partnerships, robust regulatory frameworks, and initiatives that promote innovation, inclusion, and sustainable growth.
Three youth-led startups — Geocycle, Ecobag Mart and Leovia Farms — have emerged top winners at the Greenlabs Cohort 2 “Powering Food Systems” Demo Day, securing pre-seed funding to scale solutions targeting Nigeria’s food insecurity, post-harvest losses and climate pressures.
CADEF
The Demo Day, hosted under the Greenlabs Incubation Programme powered by the Consumer Advocacy and Empowerment Foundation (CADEF) in partnership with Jacobs Ladder Africa (JLA), spotlighted 16 innovators selected through a nationwide call and intensive mentor-guided screening process.
Organisers said the winning solutions stood out for their scalability, environmental sustainability and potential to strengthen fragile agricultural value chains. The pre-seed support will fund prototype refinement, business registration, market validation and early commercial deployment.
Other finalists showcased at the event included Agricool and Dry Heat Solutions, with all participants advancing into a structured nine-month incubation programme focused on enterprise development, expert mentorship and access to growth resources aimed at transforming early-stage ideas into viable green businesses.
Delivering the keynote on behalf of the Permanent Secretary, Ministry of Agriculture and Food Systems, Emmanuel Audu Fatai described the emergence of the winners as proof that youth innovation is becoming central to Africa’s food future.
According to him, the continent’s vast agricultural potential continues to coexist with food shortages, climate stress and weak value chains, making technology-driven and energy-efficient solutions critical to achieving sustainable food security.
Executive Director of CADEF, Prof. Chiso Ndukwe-Okafor, said the selection of the three winners reflects the programme’s shift from ideas to impact-driven enterprises capable of creating jobs and delivering measurable community value.
She added that beyond funding, the incubation framework is designed to instil financial discipline, integrity and long-term business sustainability among participating founders.
Chief Innovation Officer at Jacobs Ladder Africa, Karen Chelang’at, noted that the winning solutions directly address real food-system failures through renewable-energy integration, loss reduction and productivity improvement across sectors such as poultry, aquaculture and agricultural logistics.
She emphasised that the ultimate measure of success will be the ability of the startups to achieve market readiness, scale operations and generate tangible economic and environmental impact.
Organisers stressed that while policy support remains important, cross-sector collaboration and youth-driven enterprise will play a decisive role in building resilient food systems and advancing Nigeria’s transition to a green economy.
With incubation now underway and funding secured, the emergence of Geocycle, Ecobag Mart and Leovia Farms marks a significant step toward translating youth innovation into practical solutions for Nigeria’s food and climate challenges.
The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to safeguarding the nation’s financial system, announcing that its recent upward review of the maximum deposit insurance coverage now protects about 99% of depositors in the Country.
Kabir Katata, Executive Director (Operations), NDIC, stated this on Wednesday at the Corporation’s 2025 Stakeholders’ Town Hall Meeting held in Enugu.
Katata, while speaking on the theme, “Deepening Stakeholder Engagement,” said the policy to expand deposit insurance coverage was deliberately designed to protect small savers, promote financial inclusion and strengthen public confidence in the banking sector.
He explained that the town hall meeting was aimed at engaging stakeholders across various sectors, including academia, market associations and civil society groups.
“The essence of this town hall meeting is to interact with our stakeholders, tell them what we do and listen to their questions so they can better understand the role NDIC plays in society. We guarantee depositors’ funds and supervise banks to ensure that depositors are protected”, he said.
Katata noted that following the 2024 review of deposit insurance coverage, depositors in Deposit Money Banks (DMBs), Mobile Money Operators (MMOs) and Non-Interest Banks (NIBs) are now insured up to N5 million per depositor.
Similarly, depositors in Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs) now enjoy insurance coverage of up to N2 million per depositor.
“This means that in the event of a bank failure, depositors are promptly paid up to the insured limit,” he said.
He added that depositors with balances exceeding the insured limit would receive the initial insured sum, while the outstanding balance would be paid as liquidation dividends upon realisation of the failed bank’s assets and recovery of debts.
Highlighting improvements in the payout process, Katata referenced the recent resolution of defunct institutions, including Heritage Bank Limited, Union Homes PLC and Aso Savings and Loans PLC.
He said that the Corporation successfully leveraged the Bank Verification Number (BVN) as a unique identifier to trace depositors’ alternative accounts and transfer insured sums within days of bank closures.
“I urge all depositors to ensure that their BVN is properly linked to their bank accounts and identity records. This greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he advised.
Katata emphasised that although the NDIC works closely with the Central Bank of Nigeria (CBN) to ensure sound corporate governance and regulatory compliance in banks, financial system stability remains a shared responsibility.
“While the CBN and NDIC continue to strengthen oversight, depositors also have a responsibility to remain vigilant and well-informed,” he said.
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