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Business Intelligence and Commercial Awareness Report Q1, 2026

Thu, 16 Apr 2026 10:13:33 GMT

Introduction

The first quarter of 2026 featured major developments across Nigeria’s financial, commercial, and regulatory sectors. Key actions such as the SEC’s increase in capital requirements and MTN’s proposed acquisition of IHS Towers signal stronger regulation and major strategic investments.

New initiatives like the SEC Regulatory Hub, the National Intellectual Property Policy and Strategy (NIPPS), and NDPC enforcement efforts reflect a push for better oversight and transparency. Nigeria’s global standing is also improving, with its removal from the EU high-risk AML/CFT list.

This edition of Business Intelligence and Commercial Awareness Report highlights key developments to help stakeholders understand the changing business environment and emerging opportunities.

Governor’s Consent Is Not Proof of Ownership- Clearing a Persistent Misconception in Nigerian Land Transactions

Wed, 18 Mar 2026 09:42:44 GMT

Governor’s Consent Is Not Proof of Ownership- Clearing a Persistent Misconception in Nigerian Land Transactions

Introduction

In Nigerian land transactions, few concepts are as routinely misunderstood and as casually relied upon as Governor’s Consent. Once a Deed of Assignment bears the Governor’s endorsement, many purchasers assume that the hardest part of the transaction is over and that whatever issues may have existed with the land have been settled by that approval. In practice, consent is often treated as the final seal of ownership, something that gives comfort that the title is secure, and no further questions need to be asked. That assumption, however, is legally incorrect and has been responsible for a significant number of land disputes across the country.

Governor’s Consent does not confer ownership, it does not cure defects in title, and it does not protect a purchaser who buys from someone without a valid interest to transfer. Its function is far more limited. It satisfies a statutory requirement under the Land Use Act regulating how interests in land may be transferred, nothing more. The problem is not that the law is unclear on this point; the courts have been consistent for decades. The real issue is that commercial practice has drifted away from legal principle, with consent being treated as proof of ownership when it was never intended to play that role. This article examines the true legal effect of Governor’s Consent, how Nigerian courts have treated it, and why proper due diligence remains the only reliable test of ownership in land transactions.

Data Privacy And Artificial Intelligence: Legal Implications and Regulatory Direction

Wed, 28 Jan 2026 12:42:17 GMT

Introduction

Artificial intelligence is no longer a developing or experimental tool, it has become part of everyday decision-making across finance, employment, telecommunications, public administration, and digital commerce, with credit assessments, recruitment processes, content moderation, targeted advertising, and even public-sector functions increasingly relying on automated systems, all of which are connected by their reliance on personal data.

As Artificial Intelligence systems become more deeply embedded in economic and social life, questions about how personal data is collected, analysed, inferred, and used have become unavoidable, and these questions are not merely technical but legal in nature, because although modern data protection laws were not drafted with complex machine-learning models in mind, data privacy law now provides the primary framework through which Artificial Intelligence systems are regulated where personal data is involved, making it necessary to examine how existing data privacy rules apply to artificial intelligence, the risks that arise from Artificial Intelligence-driven data processing, and the direction of regulatory oversight.

Business Intelligence & Commercial Awareness Report For Q3 2025

Mon, 20 Oct 2025 09:57:37 GMT

Introduction

The third quarter of 2025 recorded major policy and regulatory developments shaping business operations across several sectors in Nigeria. Notable highlights include stronger enforcement in data protection, key reforms in the insurance and payments industries, and new compliance frameworks governing oil exports, digital lending, and tax administration. These developments reflect the government’s continuing drive to strengthen regulation, improve transparency, and promote a more structured business environment.

During the quarter, significant actions such as the passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the NDPC’s record fine on Multichoice and its probe into over 1,300 organisations, and new directives from the CBN and NUPRC underscored this momentum. Other important developments, including blockchain integration in agriculture and the UN’s resolution on global AI governance, highlight Nigeria’s growing participation in emerging global trends.

In this edition of our Business Intelligence and Commercial Awareness (BICA) Report, we highlight these key developments from Q3 2025 and consider their practical impact on businesses, investors, and policymakers navigating Nigeria’s changing regulatory and commercial landscape.

Business Intelligence & Commercial Awareness Report for Q2 2025

Wed, 23 Jul 2025 08:39:36 GMT

INTRODUCTION

The second quarter of 2025 was marked by significant regulatory and legal developments impacting commercial activities across several key sectors in Nigeria. Notable advancements include progressive measures in maritime financing, heightened regulatory scrutiny within the capital markets, and emerging legal frameworks governing digital content. These developments reflect the ongoing evolutions of Nigeria's business and regulatory environments.

In this edition of our Business Intelligence and Commercial Awareness (BICA) Report, we examine some of the most consequential developments from Q2 2025 and assess their practical implications for businesses currently operating in, or considering entry into the Nigerian market.

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The Law as the Silent Producer: A Commentary on the Legal Architecture of Filmmaking in Nigeria

Tue, 22 Jul 2025 19:56:33 GMT

INTRODUCTION:

Filmmaking in Nigeria, often celebrated for its creative brilliance —the storytelling, cinematography, and emotional impact, is much more than the pre-production, production and post-production process. What many do not see is the intricate legal framework that this creative process rests on; while the spotlight often shines on the talent in front of the camera, the real backbone of any successful production lies in the legal groundwork behind the scenes. From script to screen, every successful film is underpinned by a web of legal arrangements that secure intellectual property, define contractual relationships, manage risk, and ensure regulatory compliance. This comments on the key legal touch-points that every filmmaker, producer, screenwriter, and investor should know and would navigate to ensure their creative visions are compliantly created and exploited.

The Ideation: Securing the Right to Tell the Story.

Every film begins with an idea, but ideas alone are not protected by law. Under Nigerian and international copyright law, ideas are not protected; only a tangible expression such as a written script, can be protected under copyright ^[1] . The establishment of ownership via the authorship of a comprehensive documentation represents the foundational legal procedure in the filmmaking industry.

Where screenwriters or creators adapt existing works, whether novels, news articles or real-life events, they must go a step further to secure adaptation rights. This often involves the execution of a rights acquisition agreement, usually in the form of an option contract. This contract grants temporary rights to adapt a work, often subject to clearly defined timelines and payment terms.

A widely publicized example of the above is the controversy surrounding Òlòtūré, a 2020 Netflix original produced by Ebonylife Studios. Shortly after its release, the film drew criticism when investigative journalist Tobore Ovuorie claimed it closely mirrored her 2014 undercover exposé on human trafficking in Nigeria, originally published by Premium Times Newspaper. While the producers claimed to have obtained rights from Premium Times, the publisher of her story, Ovuorie contended that no one had the authority to license her life experience without her permission. Her claims sparked a wider conversation and spotlighted not only copyright considerations, but also moral rights and the ethical obligations filmmakers have especially when telling personal stories.

In the end, the Òlòtūré case is a strong reminder that legal compliance is only the floor and not the ceiling. In matters involving real people and sensitive narratives, meaningful engagement is often as important as formal rights acquisition.

Confidentiality is another concern at this stage. In practice, many filmmakers use Non-Disclosure Agreements (NDAs) to protect concepts when collaborating with potential partners or investors ^[2] . NDAs while not infallible, remain a useful tool for safeguarding ideas during the ideation stage.

Pre-Production: Building the Legal Foundation

Once the creative direction is set, the focus shifts to establishing the film’s legal and operational structure.

The corporate set-up and structuring is usually the first box to tick during the pre-production phase. Filmmakers and producers typically incorporate a special purpose vehicle (SPV), usually a limited liability company ^[3] . This is to ring-fence the project, provide personal liability protection, as well as clear management of tax, accounting and contractual obligations.

Financing would typically follow corporate set up and this requires extensive legal overview and diligence. Amongst others, investor agreements remain relevant hereunder. They address the issues surrounding the investment and finance framework including but not limited to; return on investment, ownership rights, and profit-sharing. Although rarely, capital may be raised from the public; where this is the case, securities regulations will apply.

Again, there is an attention to human resource as such talent and crew contracts remain relevant to the film making industry and architecture. There contracts must and should clearly outline obligations around responsibilities, compensation, credit entitlement, and dispute resolution mechanisms etc. This helps reduce ambiguity and mitigate the risk of post-production dispute.

Another area of concern will be the permits and licensing right relating to locations and filming. Permission must be obtained for filming on private and public property. In many countries, including Nigeria, filming in a location without authorization can lead to lawsuits, equipment seizure, or production shutdown ^[4] .

Production: The Legalities surrounding “Action!”

“Cameras, Lights, Action!”. As cameras begin to roll, legal stakes begin to materialize in real time. A plethora of legal considerations ranging from consent to regulatory compliance come to life during this phase.

Whilst preparing for on-screen appearance by actors, extras or general members of the public, consent must be gotten, and filmmakers are encouraged to obtain release forms from individuals appearing onscreen. This is especially important for documentary projects or public footage, where lack of consent can expose the production to privacy or defamation claims.

Production must comply with applicable labour laws ^[5] , regarding working hours, wages, health and safety regulations. Where personnel are unionized, compliance with the terms of collective bargaining agreements is important as non-adherence may attract regulatory sanctions or litigation.

Insurance is also a consideration that must be at the top of the list as it acts a shield in the face of liability. Two major forms of insurance; Errors & Omissions (E&O) insurance- which covers legal risks like defamation, copyright infringement, or invasion of privacy ^[6] and general liability insurance which covers accidents or injuries on-set. Lack of adequate insurance could jeopardize production as a single legal claim could bankrupt the entire project.

Also, Brand logos, artwork, music, or even incidental background visuals must be cleared or licensed. Failure to do so can trigger infringement actions and post-production delays.

Post-Production: Finalising Rights and Risks

The editing room may feel far from legal issues, but this stage is where creative and legal threads converge. In the editing room, attention turns to licensing, credit, compliance, and final clearances.

First, proper documentation around the use of music must be in place. Music requires two licenses- a synchronization license for the composition, and a master use licence for the specific recording. The use of unlicensed music, even for a few seconds, could lead to copyright infringement ^[7] . A failure in this area can be costly, as demonstrated in the case of Multichoice Nigeria Ltd. v. Musical Copyright Society of Nigeria Ltd./Gte ^[8] where a ₦5.9 billion judgment was awarded against Multichoice for unauthorised use of 18 musical works by the Federal High Court in Lagos. The Court of Appeal upheld the decision, affirming that unauthorised use—whether recorded or performed—constitutes actionable infringement.

Comprehensive legal audit and risk assessment are important during the post-production phase. Films that incorporate third-party footage, interviews, or controversial subjects may also face defamation or privacy claims. A legal audit ensures that all rights have been secured and that no defamatory, unlicensed, or private material remains. Before a film can be distributed, streaming platforms and broadcasters require a full chain of title—a documented trail of ownership from idea to final production.

If any ownership rights are unclear, this may present a block to distribution or broadcasting of the film.

Distribution: Protecting Value and Enforcing Rights

Distribution is the final legal frontier—and often the most consequential for revenue generation.

Distribution agreements define who can distribute the film, in what territories, for how long, formats (e.g., cinema, streaming, DVD). The agreements also govern revenue sharing, exclusivity and language or subtitle terms. Streaming platforms like Netflix or Prime often require exclusivity periods and specific licensing agreements. Additionally, films must comply with censorship and classification laws. In Nigeria, for instance, the National Film and Video Censors Board (NFVCB) ^[9] must review and approve films before public release. Non-compliance can attract fines or bans. Finally, legal counsel is needed to manage royalty agreements. Where, cast, writers, or financiers are entitled to royalties or profit share, well-drafted backend agreements are essential to avoid future disputes and ensure fair compensation.

CONCLUSION

Filmmaking is art, but beneath the artistry lies an elaborate legal system without which no film can be safely made or commercially exploited. From the ideation through post-production and distribution, legal considerations shape every stage of the creation process. The law and legal counsel are not a postscript to the filmmaking process; it is the quiet but crucial backbone behind every frame and a necessary consideration for Nigerian filmmakers aiming to compliantly penetrate both local and international markets.

^[1 ^] Copyright Act, 2022

^[2] Non-Disclosure Agreement (NDAs) For Film And TV Executives In Nigeria

^[3] Section 21, Companies and Allied Matters Act 2020

^[4] Section 17, National Film and Video Censor Board Act 1993

^[5] Labour Act, 1971

^[6] Olisa Agbakoba Legal, S.E.T Guide to Entertainment Law, (2022), 20

^[7] Section 15 (1) of the Nigerian Copyright Act, CAP C28, LFN 2004

^[8] (2020) 13 NWLR (Pt. 1742) 415.

^[9] Section 17, National Film and Video Censor Board Act 1993

From Arenas to Screens: A Commen- tary on Sports’ Media and Branding Rights

Fri, 30 May 2025 11:39:25 GMT

1.0. INTRODUCTION

Over the years, sports have evolved beyond the receptive games to be played for either leisure or regional competition to global commercial enterprises. With events such as the FIFA World Cup, the UEFA Champions League, and the Olympics, one could argue for the gradual globalisation of sports. However, a deeper review of this process reveals the step-by-step adoption on technology and media in the said globalisation; and this in turn opens a whole world of issues around intricate productions involving intellectual property, sponsorships, media rights, and extensive contractual framework. What appears onscreen on-demand, is underpinned by meticulously crafted legal and business arrangements that enable cross border entertainment, while also embracing innovation, and advancement of commercial value as well as the mechanism for its protection. This article will comment on lifecycle of sports media and branding rights, providing a legal and commercial roadmap for international stakeholders, with a core mention of Nigerian legal framework.

1.1. The Games Before The Game: Where Rights Begin

A sporting event seen on screen represents a combination and intersection of rights, agreements, and negotiations established long before the game itself. Elements such as match footage, player imagery, and pitch-side ads are meticulously claimed, licensed, or sold by stakeholders ranging from governing bodies like FIFA and CAF to individual clubs and players.

Governing bodies like Fédération Internationale de Football Association (FIFA) or Confederation of African Football (CAF) often control broadcasting rights and official branding; Clubs handle their trademarks and merchandising, while players, depending on the jurisdiction and their contracts, may retain significant control over image use.

In Nigeria, these rights are governed primarily by the Copyright Act 2022, the Trademarks Act, and general contract law. Globally, the WIPO Draft Broadcasting Organizations Treaty seeks to provide unified protection against transnational piracy, though its implementation remains pending.

While legislation is germane, the allocation of rights determines visibility, which in turn dictates commercial value. For example, a sponsor may invest significant resources for their brand to appear prominently on a player’s jersey; if the broadcaster’s camera angles fail to display this placement effectively, disputes may arise over liability, highlighting the complexity of coordinating rights and visibility.

1.2. Broadcasting: The Soul of Sports Economics

Broadcasting rights, legal licenses, which grant entities the authority to record, transmit, and distribute sporting events across television, radio, and digital plat- forms, form the backbone of the sports economy. These rights influence how and where sports are consumed, and more importantly, who profits from them. Broadcasting deals often determine the visibility of a sport or league. A single contract can propel a domestic competition to international fame or render it virtually invisible. Broadcasting contracts typically divide rights by territory, impose exclusivity, and adhere to strict timeline.

SuperSport’s exclusive broadcasting rights for the English Premier League in Nigeria exemplify how market power and legal exclusivity intersect and give an indication of the high stakes involved.

The high stakes of these deals invite fierce legal battles. Unauthorised broadcasting — even a short clip aired by a local station — can trigger swift legal action: injunctions, takedown notices, and litigation under intellectual property and broadcasting regulations.

Nigerian courts are increasingly proactive in addressing violations, issuing in- junctions and damages to safeguard broadcasting rights. This was clear in the cases of Nigerian Copyright Commission v. Joseph Daomi (1) and Nigerian Copyright Commission v. Stanley Nwankwo (2) where the accused were both convict- ed for the illegal distribution of a broadcast signal.

Notwithstanding these strides, the digital age has further complicated enforcement. Pirated content spreads rapidly through social media and messaging apps, outpacing legal remedies. Even the most robust broadcasting contracts may falter when faced with jurisdictional challenges or technological barriers.

1.3. The Screen as a Billboard-Sponsorship Rights and Deals

Sponsorships are where legal rights and commercial branding meet. Imagine a football match with no logos, branded kits, or digital billboards — it would look almost unfamiliar. Sponsorships transform the broadcast screen into prime advertising opportunities.

Sponsors don’t pay to support the game per se; they pay for visibility — to have their brand appear on screen, in post-match highlights, and across social media. Consequently, sponsorship contracts are heavily negotiated, and often include exclusivity clauses- preventing rival brands from sharing screen space-, morality clauses- allowing termination if an athlete damages the brand’s reputation- and 0n-screen guarantee clauses- ensuring brand visibility during key moments. Legal disputes may arise when a player’s personal sponsorship conflicts with the team or league’s official sponsors. These cases often require arbitration or court intervention to interpret competing contractual obligations.

1.4. Protection and exploitation of Image Rights: An Athlete’s Brand

As athletes gain popularity, their image rights become valuable assets, especially when it comes to sports broadcasting and sponsorship deals.

Athletes are no longer just competitors; they are influencer, brands, and public figures. Image rights — the legal right to control the commercial use of one’s identity — encompass name, likeness, signature, voice, and other personal at- tributes.

1. Trademark Registration

Athletes can register their name, logo, or signature as trademarks under the Nigerian Trademarks Act.(3) This grants them exclusive commercial rights and legal recourse against unauthorised use.

2. Passing Off

Under Nigerian common law, an athlete can sue for “passing off” where their image is used without consent in a way that causes reputational or financial harm. However, for such claim to succeed, they must show goodwill, misrepresentation, and damage (see NOKIA Corp v. Intercellular Nigeria Ltd ).(4)

3. Contractual Protections

Image rights agreements which are sophisticated in nature often accompany endorsement and sponsorship deals, setting out the way and manner in which an athlete’s likeness can be used, as well as the duration.

2.0 Challenges and Emerging Legal Questions

As the sports industry evolves, so do legal challenges. Key recurring questions include:

Who owns broadcast footage — the league, broadcaster, or athlete? And to what extent does this ownership lie?

How should courts resolve conflicts between personal image rights and league broadcasting rules?

What remedies exist for athletes whose images are exploited online with- out consent?

A limitation to image rights still lingers, while copyright under the Copyright Act 2022 protects original works like photographs and videos, it does not ex- tend to personal identity. For example, a photo of an athlete is owned by the photographer, not the athlete — unless transferred.

3.0 Conclusion

In Nigeria and beyond, sports are no longer just about goals and glory, it has mutated into a high-stakes legal arena involving complex rights, cross-border contracts, and millions in sponsorship and broadcasting revenue. Whether it’s a shaky Facebook Live stream, a branded jersey, or a player’s endorsement deal, every piece of the game is backed by a legal contract.

For stakeholders — athletes, sponsors, broadcasters, and regulators — under- standing and enforcing these rights is critical. While Nigeria’s legal framework is still evolving, robust use of intellectual property law, contract law, and com- mon law principles can offer meaningful protection.

55 NIPJD [FHC, 2012] MKD/CR/38
55 NIPJD [FHC, 2012] ABJ/CR/14/2011
Cap T13, Laws of the Federation of Nigeria 2004
(2003) 12 v Pt 836, 22

Business Intelligence and Commercial Awareness Report for Q1 2025

Tue, 01 Apr 2025 15:55:06 GMT

Introduction

The first quarter of 2025 presented a dynamic landscape for businesses in Nigeria. Characterized by the key regulatory developments, macroeconomic challenges, and legal reforms across several sectors, this report highlights significant events that provide insights into practical implications and foreseeable challenges in the commercial space, while offering business a clearer understanding of their legal obligations as they make strategic decisions in an ever-changing regulatory environment.

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Afcfta: Tariff Concessions And Trade Liberalization - Legal Considerations Towards Advancing The Economic Growth Of Africa

Wed, 12 Mar 2025 13:34:53 GMT

INTRODUCTION

Africa remains relevant in the realm of global trade due to the concentration of natural resources and its population size which accounts for a sizeable part of the global market and workforce. While this should ordinarily position the continent to be one of the richest in terms of foreign reserves and economic leverage, this is not the reality. The need for the economic advancement of the African continent has birthed several initiatives in the past too many to recount, however, a recent and significant step towards this drive is the conception of the African Union’s 2063 Agenda: the African Continental Free Trade Area Agreement (‘AfCFTA/ the Agreement’).

This agreement attempts to conceptualise a blueprint for attaining inclusive and sustainable development across the continent over the next 50 years. It intends to create a single market for goods and services, facilitating movement of persons, to deepen the economic integration of the African continent while seeking to unite the economic growth of its members by establishing a free trade area for African countries. The AfCFTA is underpinned by the desire to boost intra-African trade by providing a comprehensive and mutually beneficial trading relationship among the State Parties covering trade in goods and services, investment, intellectual property rights, competition policy, digital trade, and women and youth in trade. However, one wonders whether trade liberalisation within the context of AfCFTA means the immediate tariff eradication. This article shall comment on the concept of tariff concessions towards trade liberalisation within the context of AfCFTA, while also highlighting legalities that may pose a challenge to the actualisation of this agreement for member states and businesses.

UNDERSTANDING THE CONCEPT OF TARIFF CONCESSIONS AND TRADE LIBERALIZATION IN THE CONTEXT OF AFCFTA

Tariff concession generally refer to the gradual reduction or removal of tariffs usually paid on goods imported. Tariff plays a major role in the price of goods; consequently, its reduction arguably results in lower prices for imported goods, and this advances continental market competition. On the other hand, trade liberalisation means opening markets by reducing restrictions on the movement of legal goods and trade personnels – invariably making it easier for businesses to leverage cross border policies for their operations.

Under AfCFTA, Tariff concessions involve removing tariffs in stages. Article II and III of the AfCFTA requires members to initially remove tariffs from 90% of goods per AfCFTA Tariff Modalities, eventually allowing free access to at least 97% of goods and most of services across the African continent. The creation of a single market for goods, services and the facilitation of movement of persons across borders, are fractional but core benefits fostered by the implementation of the AFCFTA. The agreement also contributes to the movement of capital and natural resources and promotes local and foreign direct investments (FDIs) reflective in the industrial development and diversification around key industries such as agriculture, manufacturing and services.

Notwithstanding the above and the socio-economic benefits of the agreement, there are arguments unfavourable to trade liberalisation under the agreement especially in the manufacturing sector. It is important to note that the need for trade liberalisation is bolstered by the thought process that the underdeveloped and developing countries within the continent would collectively experience a rise in income gains. This presumption is hinged on the reciprocity from richer countries in eliminating the import tariffs and duties on goods and services which will drastically reduce the cost of goods while maintaining original quality of goods consumed by a larger population. While this is evidently a great benefit, it also poses the risk of running a huge percentage of local manufacturers out of market, leading to job loss and reduction in purchasing power of the affected countries.

Victor Mlambo and Mfundo Masuku (2022)[1] argues that where trade liberalisation is implemented, importing goods may become cheaper than buying from local manufacturers, who have overtime capitalised on the expensive rate of import duties and tariffs, leading them to present an alternative to consumers – by locally manufacturing these goods. This act has offered millions of persons jobs that may now be at risk. While critics to this argument posits that jobs will be created by the AfCFTA to accommodate these local manufacturers, it is hard to believe the extent to which this will be impactful.

LEGAL CONSIDERATIONS FOR BUSINESSES OPERATING UNDER THE AFCFTA

The African Continental Free Trade Area (AfCFTA) presents significant opportunities for African businesses, and with this comes with legalities that must be carefully navigated in order to adequately leverage it whether as a member country or a business operating in a member country. Amongst others, businesses must consider workings of intellectual property, data privacy, taxation and transfer pricing etc. which are germane to maximise opportunities presented under AfCFTA.

The considerations hereunder are carefully captured under the protocols to the AfCFTA Agreement, to wit: Protocol on Trade in Goods, Protocol in Services and Protocol on Rules and Procedures on the Settlement of Disputes and operational instruments such as the Rules of Origin, the online negotiating forum, the monitoring and elimination of non-tariff barriers, a digital payments system and the African Trade Observatory[2] For example, compliance with AfCFTA Rules of Origin[3] is important for businesses. Companies must ensure that products meet the Rules of Origin criteria and ensure proper documentation such as certificates of origin to qualify for preferential tariffs under AfCFTA. Non-compliance could result in higher tariffs or denial of market access.

Also, the Protection of intellectual property (IP) right remains relevant to businesses trading across borders as failure to protect IP could lead to counterfeiting or unauthorised use of products and brands. AfCFTA encourages harmonisation of IP laws, however, this will take some time as the domestication of IP protection still holds strong across the different national IP regimes.

Businesses must comply with streamlined customs procedures under AfCFTA to ensure smooth cross-border trade. This includes proper documentation, adherence to import/export regulations, and use of digital systems[4]. Delays or non-compliance with customs procedures can lead to increased costs and loss of business opportunities. Also, with the projected increase of digital trade under AfCFTA, and the new digital trade protocol, businesses are required to comply with data protection and privacy laws in the relevant member state where their business is being conducted. Non-compliance could result in legal penalties and reputational damage.

Furthermore, Labor and Environmental Standards are also an important consideration for businesses. Adherence to labor and environmental standards to avoid liability arising from reputational damage and litigious claims. The AfCFTA Agreement emphasises sustainable development[5] and businesses should consider scenarios wherein Environmental Impact Assessments (EIA) are a requirement. Violations of labour and environmental standards could lead to sanctions or exclusion from markets. Businesses investing in other AfCFTA member states must understand the legal protections available under bilateral and multilateral investment treaties. The AfCFTA Protocol on Investment which in the final draft stage will provide a framework for investment protection. It is important for businesses should also review Nigeria’s bilateral investment treaties (BITs). Again, It is of utmost importance to ensure compliance with consumer protection laws in AfCFTA member states to avoid legal liabilities. In Nigeria, the Federal Competition and Consumer Protection Act (FCCPA) 2018 governs consumer rights. AfCFTA also emphasises fair trade practices.

Finally, disputes are bound to arise during any form of trade. It is important to understand the Dispute Resolution Mechanisms available under AfCFTA for resolving trade disputes, such as those related to tariffs, non-tariff barriers, or breaches of trade agreements.

SOME CHALLENGES HINDERING THE MAXIMISATION OF BENEFITS UNDER AfCFTA

While AfCFTA holds great promise, there are several roadblocks to its optimal utilisation This can be reflective in the agreement itself or the local policies of itself or the local policies of the member countries. First, the readiness and political willingness of the member states remains questionable. For example, while member states may have signed on to this agreement and its protocols, there is need for there to be corresponding repositioning at the various national level to reflect the true desire for this agreement to thrive; this does not appear to be happening for now. Perhaps this is drawn from the complexity of the regulations. Again, there appears to be growing concerns around custom and border requirements despite the existence of this agreement and this results in delays. Border processes must be streamlined and optimised to further trade liberalisation.

It must be highlighted that the success AfCFTA goes beyond opening of borders; it extends to the core need for infrastructural development at the national levels of member states. Poor roads networks, unreliable electricity, and weak transport systems continue to hinder the smooth movement of goods and services, and this accounts for loss of opportunity under the agreement. Thus, a continental-wide increase in investment for infrastructure remains integral.

Overall, to fully enjoy the benefits of AfCFTA, member countries must streamline regulations, remove unnecessary barriers, improve roads, ports, and digital connectivity to support efficient trade, provide incentives for businesses to grow and compete effectively and simplify customs processes and adopt digital solutions for faster and smoother trade. With the right policies and investments, AfCFTA member states can adequately leverage the advantages of the agreement and African continent as a strong economic bloc in the global economy and conversation around international trade.

CONCLUSION

AfCFTA presents a massive opportunity for Africa’s economic growth by implementing tariff concessions and trade liberalization, encouraging seamless trade among African countries. Although the skepticism occasioned by complex trade regulations, reluctance in lifting import duties by some members state, and the fear of being overly dependent on one Nation for supply of goods and services still hovers, it is without that doubt, that if properly implemented, the benefit presented by the AfCFTA far outweighs its current pitfalls.

African businesses looking to leverage the opportunities presented by AfCFTA must navigate a complex legal landscape. By understanding and addressing these legal considerations, businesses can mitigate risks, ensure compliance, and maximize the benefits of participating in the continental free trade area.

REFERENCES

https://azafinance.com/afcfta-overview-purpose-and- benefits/#:~:text=Benefits%20of%20AfCFTA,increase%20shared%20prosperity%20i n%20Africa.

https://www.macmap.org/en/learn/afcfta#headingId_WhatIsAfCFTA https://au.int/en/african-continental-free-trade-area

Export.gov. 2016 “U.S. Free Trade Agreements.” n.d. https://2016.export.gov/fta/ - Office of the United States Trade Representative, 2019

Startup Investor Readiness: Considerations on the path to Capital Raise

Fri, 31 Jan 2025 10:42:25 GMT

INTRODUCTION

Expansion and growth constantly underpin the developmental drive of startups. Nevertheless, the desire to grow must be considered within the context of access to fund or funding opportunities available. The importance of capital cannot be undermined in the lifecycle of a startup whether or not it is exploring the possibility of expansion. Also, investors will more often than not scrutinise the investor readiness of any startup seeking its capital contributions; this begs the question - What must be done for a startup up to better position itself to attract investment opportunities? This article considers some legal, corporate and structural elements needing attention by a startup on its path to raising capital.

UNDERSTANDING INVESTOR READINESS WITHIN THE CONTEXT OF FUND RAISING

While one could argue herein that capital raise is a destination, it is suggested that perhaps fund raising is better appreciated when considered as a journey within a journey or at least a part thereof. Regardless of the position adopted, what remains trite is the fact that it is critical for startups to ensure that their legal, corporate and structural status supports them on their path to raising capital.

Notwithstanding the above, it is important to understand there is no one-size- fits-all approach to look at investor readiness. Investor readiness looks and inspires investor confidence differently at the different stages of a startup’s lifecycle affecting or reflecting (depending on the stage and notwithstanding the idea being prosecuted by the startup) in the type of capital the startup attracts, the type investor, and the cost of the capital. For example, a startup with a well- structured organisational and business plan, a legal and regulatory compliant business, and well documented policies guiding its business operations, particularly as it relates to its interactions with customer, will likely inspire a higher level of confidence in an investor. This is not to say that a startup that does not possess the aforementioned elements will not inspire any sort of investor confidence, however it will not do as well as the startup earlier described; and this will be reflected in the type of investors that choose to invest, their decision and the cost which will typically be higher due to the risk associated with non or low investor readiness.

Again, we must bear in mind that the aforementioned will depend on the stage at which the company is looking to raise and the type of funding opportunity it desires to exploit. Typically, the requirements become stricter as the startup grows and moves to later stages in its lifecycle. However, it does not mean that early staged startups should neglect their preparations for investment as they will likely pay for this by the high cost of capital raise amongst others. We will now comment on some legal, corporate and structural elements necessary to be considered by startups, particularly, earlier staged startups while on their path to capital raise.

SOME LEGAL, CORPORATE AND STRUCTURAL ELEMENTS NECESSARY TO BE CONSIDERED BY STARTUPS

Shepherd, Douglas, and Shanley (2002), posit that investors, especially VCs, look out for three major things before investing in a startup – the technology readiness, market readiness, and management readiness. While investors are often drawn to the innovative, technological and marketable elements of a product – which to a large point are measurable. However, that is not the case for management readiness which anchors itself on the quality of the people and organisational structure and which is also very important to investor readiness of a startup. For example, I. Macmillan posits that investors are drawn to entrepreneur’s personality and experience, the characteristics of the product, and the characteristics of the market in relation to the financial consideration.

Organisational structure goes beyond internal reporting lines in the startup. It encompasses the nature and legal status of the startup. Essentially, while an investor invests in the startup’s idea, vision, and projections, the investment must be housed within a legal entity in which the said investor shall advance either debt or equity capital to. Thus, a startup looking to raise must preferably be incorporated or at least be in the process of formalising its legal status by incorporation as recognised and suitable legal entity.

A further area to consider is corporate governance. While this is a broad subject matter which is continuous in nature, the founders need to ensure that polices that reflect proper corporate governance is put in place. This may look like the appointment of directors which should typically include independent directors, employee and contract staff engagements, proper organising of shareholder meetings, filing of returns, compliance with necessary corporate approvals, ensuring adequate internal and external policies etc.

Again, startups more often than not tend to neglect the importance of intellectual property (IP) and the need to carefully manage it. They are more focused on the exploitation of their IP that they forget to develop and adopt protection strategies thereon. It is never advisable for a startup to be dormant when it comes to the ownership of its IP; rather, they should have a protective posture ensuing that all contracts and engagements with employees and third- parties concede all IP rights to it as the scenario allows.

On the issue of contracts, it is not unusual for startups to enter into contracts, whether at an exploratory or operational level. A part of the due diligence exercise conducted by investors at the point of capital raise will typically include the review of material contracts entered into by the startups. The goal is to see how the terms of the said agreement affects the company’s position and by extension their interest in the company if they choose to invest in it. Thus, a part of investment preparation is to ensure that all contracts with 3rd parties are properly vetted by a legal expert and with the possibility of future investment in mind. For example, a share purchase or subscription agreement between an early staged startup and a “friends and family” round investor wherein 50% of the equity in the company is granted to a single investor in that round does not give enough room for future investors to invest in the company at relatively fair cost. The cost of investment in that company will likely be high and the element of share dilution will likely arise.

Lastly but in no way the least, startups must ensure that their books are clean and their financial practices are in line with international best practices at each stage. This will impact their tax obligations as well as clearly aid in attaining the true valuation of the startup at a capital raise round.

CONCLUSION

Overall, investor readiness is a journey that must be embarked on by any serious startup looking to raise substantial capital towards the advancement of its expansion or sustenance. This requires more than just a great business idea, but a well-structured approach to positioning the startup’s legal, corporate and structural aspects towards building investor trust on their path to capital raise. Startup founders looking to raise capital may seek advice from experts on how to go about this.

REFERENCES

Shepherd, Dean A, Douglas, Evan J, & Shanley, Mark. (2000). New venture survival: Ignorance, external shocks, and risk reduction strategies. Journal of Business Venturing, 15(5), 393-410. https://vincaps.com/4-different-stages-of-fundraising-in-a-start-up-lifecycle/ https://en.wikipedia.org/wiki/Fundraising https://essay.utwente.nl/64605/1/Westerik_MA_MB.pdf

Payment Forms For Creatives In The Nigerianfilm Industry: Understanding The Concept of Residuals.

Thu, 17 Oct 2024 06:41:56 GMT

INTRODUCTION

When analyzed from a local and global perspective, the growth of the Nigerian entertainment industry is impossible to ignore. With a revenue generation capacity at around N7 billion naira, it stands out as one of the key contributors to Nigeria’s GDP with prospects for more. However, understanding intellectual property rights and the dynamics that surround its exploitation and payment forms appears to be an Achilles’ heel for the players within this industry. This article will attempt to demystify residuals as payment form in Nigerian film industry.

UNDERSTANDING RESIDUALS IN FILMS:

The Nigerian film industry strongly anchors on protecting and exploiting Intellectual Property rights (IPRs). Beyond protection, a careful exploitation strategy concerning these rights ensures that creatives get the much-earned benefits (financial and otherwise) accrued to them for their contribution towards the creation of the work. Mainly, there are two major forms of payments associated with IPRs in the film industry to wit- Royalties (usually performance royalties for music used in films) and Residuals. While they appear similar, they are not the same. On the one hand, Royalties refer to payments made to IPR owners (typically copyrights in music and photographs or still graphics) for the use of their intellectual property while Residuals, are payments made to performers, writers, and other creatives for the reuse or re-broadcast of the work in which they have contributed to. Again, while Royalties will typically be paid regularly and based on the generated sales or revenue from the use of the intellectual property, residuals are paid on a one-time basis on each re-use or re-broadcast, and based on the percentage of the revenue generated by the reuse of the work.

Understanding the concept and application of Residuals in the Nigerian film industry has become more critical with the introduction of global and regional streaming and distribution platforms. However, it is important to note that not all contributors to a film are entitled to or can lay claim to residuals. Generally, and except otherwise expressly waived, mainly principal performers are entitled to royalties, however, where a non-principal performer negotiates into its agreement the payment of residuals, such person will contractually be entitled to the said residuals. By principal performers, we mean the credited cast of a film usually, the lead actors, other actors with Principal speaking roles, Professional singers, Stunt performers or coordinators etc. The aforementioned notwithstanding, there are other persons who by their roles are usually entitled to pre-negotiated residuals in the film, they include directors, unit production managers, assistant directors (typically the first and second) and credited writers. Background actors or actors who show up in only one scene cannot claim residuals.

In more established climes, there are formulas to calculate what is due to the creatives and a collection process. In Hollywood for example, the Screen Writers Guild (SWG) and the Screen Actors Guild (SAG) of America regulate the percentages due to creatives for their roles in movie production. It is unlike the royalties in Music where a percentage is agreed via a contract between the parties. There, the revenue obtained from the reruns and streams of a movie is calculated by the SWG and the SAG. The payment is usually in a percentage formula determined based on the gross revenue received by the unions (SWG and SAG). The union receives payment from the TV shows that rerun the production, then calculates what is due to the creatives. Note that creatives are not eligible for residuals on the initial release of the movie production, which traditionally would last for 90 days (3 months). After this period, the union starts receiving residuals which are payable within 30 days of the rerun, and in turn, remits the residuals to the creatives yearly. For example, in the popular TV show, Jumanji by Dwayne Johnson, produced in 2019, the revenue generated for that year was about $795,000,000 (seven hundred and ninety-five million dollars). However, in subsequent years the blockbuster movie made about $500,000,000 (five hundred million dollars) with the star actors receiving 2% of the gross revenue ($5,000,000). This is not the case in Nigeria as the above system is yet to be adopted or mirrored in Nollywood hence, creatives may have to continue to rely on their contractual negotiations to ascertain what becomes due at a subsequent use or re-broadcast.

CONCLUSION

Overall, where works within this industry are made for an initial specific use, and subsequently remodelled or rebroadcasted in a different format, residuals become due to the relevant applicable contributors to the said work. Residuals remain one of the major incentives for creatives in the film industry. And with the increment of a plethora of subsequent use of films in Nigeria particularly via streaming platforms, creatives must now more than ever, understand the dynamic of residuals if they are to fully maximize the exploitation of their IPRs which are anchored on their contribution(s) to the films in the Nigerian film industry. In all, seeking legal guidance with their contractual engagement will always be a good start.

Written by:

Nosa John Graham Garrick (Managing Partner)

Eseosa G. Irabor (Associate)

Joyce Nneji (Associate)

REFERENCES

Deborah Dan-Awoh, Top Ten Fastest Growing Film Industries in the World (Nairametrics.com, August 2024) https://nairametrics.com/2024/08/14/top10-fastest-growing-film-industries-in-the-world/ 08/10/2024
Duale, Ovia & Alex-Adedipe “Implementing Residuals in Nollywood” (doa-law.com, July 2023) https://www.doa-law.com/wp-content/uploads/2023/07/Implementing-Residulas-in-Nollywood.pdf 09/10/2024
Brian Contreras, “What are residuals and how do they work? A Hollywood background strike, explained” (latimes.com, September 2023) https://www.latimes.com/entertainment-arts/business/story/2023-09-20/actors-and-writers-are-striking-over-residuals-so-what-are-residuals-anyway#:~:text=Residuals%20are%20payments%20a%20writer,can%20also%20bring%20in%20residuals

A Brief Highlight on Some Changes Introduced by the Nigeria Finance Act 2023 to the Nigerian Tax Regime

Fri, 20 Oct 2023 18:05:02 GMT

Introduction

The Nigeria Finance Act 2023 (the "Act") was signed into law on May 28, 2023. The Act introduces several significant changes to the Nigerian business environment, and in particular, the Nigerian tax regime. Here are some highlighted points for startups and

established businesses operating in Nigeria to note.

1. TAXATION OF DIGITAL ASSETS:

With an aim to raise revenue form the growing digital economy, the Act imposes a 10% tax on gains from the disposal of digital

assets.

2. DEDUCTION OF CAPITAL LOSSES:

As opposed to the erstwhile position which allowed taxpayers to carry forward capital losses for a maximum of three years, the Act allows taxpayers to carryforward capital losses for a maximum of five years. This change is designed to provide taxpayers with more flexibility to manage their tax liability.

3. ROLLOVER RELIEF ON SALE OF SHARES:

The Act restricts the availability of rollover relief on the sale of shares. Rollover relief is a tax relief that allows taxpayers to defer paying tax on gains from the sale of shares if the proceeds from the sale are reinvested in new shares. The Act now only allows rollover relief if the proceeds from the sale are reinvested in new shares within the same year of assessment. This change is designed to prevent tax payers from using rollover relief to indefinitely defer paying tax on gains from the sale of shares.

4. DELETION OF INVESTMENT ALLOWANCE ON PLANT AND EQUIPMENT:

THE Act deletes the investment allowance on plant and equipment. The investment allowance was a tax deduction that was available for the cost of new plant and equipment. While this increases the revenue for the government, it is a significant change that will arguably push the cost of capital for businesses in Nigeria further north.

5. EXCISE TAX ON TELECOMMUNICATIONS SERVICES:

The Act imposes excise tax on telecommunications services at rates to be prescribed by the President.

In addition to the above, the Act also introduces and creates some other changes concerning arears like the withholding tax rates for certain payments. Here, the Act increases the withholding tax rates for certain payments, such as payments for rent, royalties, and management fees. Furthermore, it introduces new VAT rules for digital services, such as streaming services and online gaming and increases the stamp duty rates for certain documents, such as leases. Overall, the Act is a significant piece of legislation with immediate impact on the Nigerian tax regime and by the doing of business in Nigeria. Consequently, Nigerian startups and established businesses operating in Nigeria are enjoined to review the Act in order to understand how it applies to their line of business.

Subsidy Removal and Consumer Protection in Nigeria: The Need for a Proactive Federal Competition and Consumer Protection Commission Towards Safeguarding the Consuming Public.

Mon, 25 Sep 2023 18:11:59 GMT

Introduction

Consumer protection laws play a crucial role in protecting the consuming public from being exploited by service and commodity

providers in Nigeria. On the 29th of May 2023, the removal of petroleum subsidy was announced; and this immediately contributed towards reducing the purchasing power of the consumers of not just petroleum products, but of other goods and services in Nigeria. Nevertheless, while this may be difficult for the consuming public, it is not outlandish to posit that providers of these goods and services are presented with an exploitative opportunity in that, they arguably are able to capitalize on the current economic environment to arbitrarily increase and alter their prices as well as be inconsistent with the standard of goods and services. Consequently, the need to take on a more proactive counter-exploitative stand by the Nigerian Government cannot be over emphasized; this commentary seeks to propose this.

A Commentary on the Transition and Role of the FCCPC

The primary legislation for the governance of Consumer protection in Nigeria is the Federal Competition and Consumer Protection Act (FCCPA) of 2018. Importantly, the Act establishes the Federal Competition and Consumer Protection Commission (FCCPC) which is the regulatory body responsible for enforcing consumer protection laws, preventing unfair trade practices, and promoting fair competition in the market.

It is critical to note that in this subsidy removal transition period, a key concern for consumers is the potential price gouging and unfair pricing practices. Thus, considering one of the roles of the FCCPC is to ensure fair pricing and prevent exploitative practices, it is important for it to collaborate with other relevant agencies to actively monitor and enforce the application of regulations that require businesses to provide transparent pricing information and prevent price manipulation, protecting consumers from being subjected to unfair pricing practices.

Furthermore, beyond the pricing, consumer protection laws also cover the issue of quality and safety of goods and services. The FCCPC has the authority to establish and enforce standards for products, as well as carry out inspections and investigations to ensure compliance. This becomes particularly important in this subsidy removal transition period in that the market dynamics have been impacted and could potentially lead to the influx of substandard or counterfeit products by persons looking to unduly maximize profit and take advantage of unsuspecting consumers looking to reduce their cost of living. As a result, it is suggested that the FCCPC intensify its efforts to counteract such occurrence and prevent the same from being prevalent as this will ensure that consumers are protected from substandard or unsafe products at this time.

Finally, added to the above is the fact that the consumer protection laws in Nigeria also emphasize the importance of consumer education and awareness. While the FCCPC has been seen in recent times to further this cause, it appears there is more work to be done. Particularly, there is need to aggressively promote the intimation of the consuming public of their rights and means of enforcing the same via the redress mechanisms ensured for under the laws. Again, this will also require or force the FCCPC to be active in ensuring increased access to the dispute resolution mechanisms and procedures it has at its disposal.

Conclusion

Overall, consumer protection laws in Nigeria serve as a vital safeguard for citizens. And with policy shifts such as the removal of petroleum subsidies which has a wider impact on the consumer dynamics, there is a need for the Nigerian government to create a much-needed balance in fairness between the consumers of goods and services in Nigeria and the providers of the same. By enforcing fair pricing, ensuring product quality, creating access to redress mechanisms, and promoting consumer education, the FCCPC plays a pivotal role in this regard. Nevertheless, it is enjoined to play are more proactive role in safeguarding the rights and interests of consumers in this subsidy transition phase.

An overview of the CBN Guidelines for the Regulation of Representative Offices of Foreign Banks in Nigeria

Mon, 22 May 2023 18:16:32 GMT

Introduction

The Central Bank of Nigeria (CBN) released a circular on the 5th of 2023, outlining comprehensive guidelines for the regulation of

representative offices for foreign banks operating in Nigeria. The circular signifies a crucial development within the Nigerian banking sector, as it provides explicit instructions and requirements for foreign banks intending to establish representative offices in the country. The guidelines aim to attract foreign investment, promote financial inclusion, and reinforce the regulatory framework governing the Nigerian banking industry. This article seeks to highlight some of the key provisions outlined in the circular vis-à-vis their potential impact on the banking sector.

1. Licensing and Establishment Requirements

Under the new guidelines, foreign banks seeking to establish representative officesin Nigeria must first obtain a license from the CBN. This licensing process ensuresthat only reputable and qualified banks are permitted to operate within thecountry. The application for a license requires the submission of comprehensivedocumentation, including the bank's financial statements, business plan, and adetailed outline of the proposed activities to be conducted by the representativeoffice. The CBN will assess each application on its merits, considering factors suchas the bank's financial soundness, global reputation, and compliance record.

2. Activities and Limitations

While representative offices are not permitted to engage in banking activities such as accepting deposits or extending loans, they are authorized to undertake specific functions to support the parent foreign bank's operations. These include conducting market research, liaising with existing and potential clients, and providing information regarding the foreign bank's products and services. These activities serve to promote the parent bank's presence and enhance its understanding of the Nigerian market. However, it is crucial to note that representative offices are explicitly restricted from participating in any form of revenue-generating or profit-making activities.

3. Staffing and Expertise Requirements:

The circular highlights the significance of having qualified personnel within representative offices who possess in-depth knowledge of the Nigerian banking sector. The appointed staff must be familiar with local laws, regulations, and market dynamics to effectively liaise with Nigerian financial institutions, customers, and stakeholders. Adequate staffing is essential for ensuring the representative office's ability to carry out its permitted activities while upholding the standards of professionalism, compliance, and ethical conduct expected by the CBN.

Concluding comments

With the issuance of this circular, there is a reasonable expectation for severalpositive outcomes within the Nigerian banking sector. First, by clearly outlining therequirements and limitations governing representative offices of foreign banks, thecircular deepens the regulatory coverage of the CBN and adds to the advancementof the CBN’s regulatory framework for the Nigerian Banking system. It fosters atransparent and accountable environment, ensuring compliance with applicablelaws and regulations. Secondly, the circular arguably promotes foreign directinvestment as foreign banks are likely to be attracted to establishing a presence inNigeria. This is also by extension will advance the expertise level in the Nigerianbanking system considering that foreign banks seeking to establish representativeoffices in Nigeria will bring valuable international expertise and know-how into thecountry.

Finally, one can argue that the circular contributes to financial inclusivity by promoting the dissemination of information regarding foreign banks' products and services, enabling Nigerian consumers and businesses to access a broader range of financial solutions. This is a significant step towards promoting a robust and well-regulated banking sector and to maintaining a viable banking environment in Nigeria.

An Overview Of The Protection Of Depositors’ Fund In The Nigerian Banking System

Tue, 28 Mar 2023 18:30:25 GMT

Introduction

In Nigeria, the protection of depositors’ fund is primarily overseen by the Nigeria Deposit Insurance Corporation (NDIC). Established in 1988, the NDIC provides a safety net for depositors through an insurance coverage on their deposits in the event of bank failures or closures. Arguably, this is one of its most significant roles. The recent failure of the renowned Silicon Valley Bank (SVB) following a bank run raised global concerns regarding the safety of bank deposits. Fortunately for the depositors, they will be able to access their funds following the intervention of the Federal Deposit Insurance Commission (FDIC).

The FDIC was established in 1933 as a response to the wave of bank failures that occurred in the 1930s. It operates as an independent government agency that is sustained by premiums paid by banks and savings associations. Since its inception,

it has been consistently positioned to protect depositors from losing the entirety of their funds as a result of bank failures. In the US, each depositor at a bank is covered up to a limit of $250,000 per account ownership category by FDIC insurance. Various studies have shown that most Americans typically maintain deposits below this limit, the majority of them are eligible for coverage under the FDIC insurance program.

The deposit coverage for each country differs and is specific to the financial standing and quality of the Country’s depositors. For example, in Nigeria, the protection of depositors’ fund is not to an infinite level. The NDIC insures deposits up to a maximum of N500,000 (approximately $1,300 USD) per depositor, per bank, for all deposit accounts held in various ownership categories, including individual, joint, and trust accounts. Although this may seem low, it stands with reason when one considers the fact that only 2% of the 70 million bank account holders have more than N500,000 in their accounts. It is important to note that the NDIC coverage does not extend deposits in non-licensed financial institutions or informal savings schemes; rather, it applies to all licensed banks, including commercial banks, merchant banks, and non-interest banks, as well as primary mortgage banks and microfinance banks.

As earlier alluded to, the NDIC has other roles beyond the depositor coverage. And one can argue that these roles are preventive in nature. For example, it performs some risk assessments on the applicable banks to ensure their safety and

soundness vis-à-vis the Nigerian financial system, expectation and framework. Essentially, the NDIC at its core, has a supervisory role over banks for the purpose of protecting depositors fund, fostering monetary stability, promoting an effective

and efficient payment system, and promoting competition and innovation in the banking system. And by extension, it arguably reduces or prevents the potential risk of Bank failure.

In the event that the Bank does fail notwithstanding the above, the NDIC has the responsibility to ensure that the cause of failure is identified and resolved timeously and efficiently. Furthermore, where the corporation fails and does not respond to

resolution methods, the bank liquidation option is considered and adopted by NDIC to ease the bank out of legal existence. This will naturally involve closure of the failed institution in a way to has little or minimum disruption to the banking system with a cost-effective strategy to realize the assets of the bank and the settling of depositor, creditor and shareholder claims where possible.

Also, it is important to state that beyond the NIDIC, the Central Bank of Nigeria also has in place, a plethora of measures to protect depositors, for example, the minimum capital requirements for banks, regular bank examinations, and strict regulations on the operations of banks. In the same manner, the Securities and Exchange Commission (SEC) in Nigeria also has a role to play in the protection of depositors. It does this by regulating the activities of investment and securities of companies, mutual funds, and other financial institutions so as to checkmate their excesses.

Finally, it is important to note that the importance of agencies such as the NDIC around the world cannot be downplayed. It provides an extra confidence in each country’s banking system which must be maintained to advance their financial

system. More so, considering the interconnectedness of the Global Bank Sector, one can argue that the continued maintenance of agencies such as the NDIC and FDIC will positively serve the global financial system.

Non-Fungible Tokens and Copyright-Understanding the Issues Affecting Copyright Ownership

Tue, 17 May 2022 22:37:10 GMT

Infringement of Copyrightable Works Represented by NFTs

Introduction

In a time where the central discourse surrounding blockchain technology concerns cryptocurrencies, Non-Fungible Tokens (“NFTs”) appear to have gained insuppressible traction. This class of tokens are not new in some sort; they have been around since at least 2017 when Dapper Labs experimented with selling NFTs for digital cartoons.1.

What are NFTs, and How do they work?

2 NFTs are a unique digital asset (token) that is minted, recorded, and traded on blockchain technology3. It represents a unique asset that can either be purely digital or tokenized iterations of real-world assets.4 Due to them being interchangeable, unlike cryptocurrencies which are fungible (i.e. mutually interchangeable), NFTs function as proof of authenticity and ownership within the digital realm.5

Mainly, NFTs apply to anything digital, including but not limited to drawings, music, videos, gaming, and pictures.6 However, there is a current buzz for its utility in the sale of digital art so much that people now refer to them as the future of fine art collecting.7 For example, on 11 March 2021, Mike Winklemann, a graphics designer, sold a digital collage as an NFT for slightly over $69million8 and such sales and transactions concerning another digital version of otherwise copyrightable works are becoming more frequent, thereby raising the issue of copyright ownership as there appears to be confusion between ownership of the works sold and for which the NFTs ascribes authenticity and the ownership of the copyright in the said work.

NFTs and Copyright Ownership

The above raises a question of whether there exist Copyright in Blockchain technology that can enable NFTs to create the same upon the lodging of a transaction concerning an otherwise copyrightable work. Essentially, can NFTs through blockchain technology automatically confer copyright on the purchaser of an otherwise copyrightable work? The answer is in the negative. While this may seem simple, one can understand how the confusion would arise. When an NFT is minted and transacted on, the blockchain technology records unique metadata on the transaction indicating ownership spread out on a distributed ledger. However, while the purchaser of the NFTs buys the same in connection to a copyrightable work, it buys nothing more than a “mere unique hash on the blockchain with a transactional record and a hyperlink to the file.”9, in this case, the copyrightable work.

10Thus, while purchasing NFTs representing a digital version of an otherwise copyrightable work by a creative, grant the buyer exclusive ownership of the work, the copyright in the said work does not automatically lie in the buyer’s favour. The operational rule herein is the general rule of first ownership of copyrightable work, which provides that copyright vests initially in the author of the work and can only be divested by a contractual waiver of such right by the author of the work except in limited cases. This appears to be the only way copyright can pass from the author to the buyer of the digital copyrightable work, considering a “lack of copyright trading infrastructure that complies with international law”.11 Essentially, the general loosely regulated (if at all) NFTs is subjected to the same copyright rules applicable to non-digital copyrightable works.

NFTs and Copyright Infringement.

Notwithstanding the above, another issue that arises beyond copyright ownership concerning NFTs that represent Copyrightable works will be an infringement of copyright therein. We discussed the issue above from a position where the digital copyrightable works seller was the genuine author of the work. However, despite the onboarding process NFTs (i.e. minting, which means the signing of the NFTs at the point of upload) which seeks to trace the NFT to the owner of the work, i.e. the actual creator of the work, we find that many creatives complain about finding their pieces on NFT marketplaces without their authorization. Arguably, this can be traced to the combined fact that people lie about their identity and the nonexistent legal framework in the NFT marketplace12 to checkmate this.

13Notwithstanding, because the NFTs concerning digital-copyrightable works does not differ from non-digital
copyrightable works, at least for now, a creative whose work was infringed on can arguably bring an action against the NFT holder as would be done in a regular case, and because the non-fungibility of an NFT and the fact that blockchain technology makes it easy to trace the elements of the transaction, it becomes possible to identify the primary infringer of the work.

Conclusion

Overall, there is a growing utilization of NFTs in the trading of copyrightable works in the blockchain space; artists worldwide and in Nigeria leveraging this phenomenon will continue to increase. However, until there is clarity in the governance of the NFT marketplace, creatives must continue to leverage current copyright laws to protect their works from being digitized and sold without their consent. Finally, buyers must also understand what the NFTs purchased transfers to them and appreciate how to understand copyright law exceptions to secure copyright ownership in the copyrightable work represented by the NFTs they are buying.

References:

1 Jeff John Roberts, ‘The NFT Craze offers Easy Money- And Hard Copyright Questions’ (Decrypt 13 March 2021) https://decrypt.co/60394/nft-craze-easy-money-hard-copyright-questions Accessed 24 June 2021.
2 Photo Credit: NOWPayments.io https://nowpayments.io/blog/what-is-nft-and-3-ways-you-can-profit
3Awani Kelkar, ‘Non-Fungible Tokens And Copyright Law: A ‘Nitty’ Dilemma’ (Quint 16 April 2021) https://www.bloombergquint.com/opinion/non-fungible-tokens-and-copyright-law-a-nifty-dilemma accessed on 24 June 2021.
4 Binance Academy, ‘A guide to Crypto Collectibles and Non-fungible Tokens (NFTs)’ (Binance Academy June 2021) https://academy.binance.com/en/articles/a-guide-to-crypto-collectibles-and-non-fungible-tokens-nfts accessed 24
June 2021
5 Ibid.

6 Mitchell Clark, ‘ NFTs, explained’ (The Verge 11 March 2021) ‘ https://www.theverge.com/22310188/nft-explainer-what- is-blockchain-crypto-art-faq accessed 24 June 2021.
7 Ibid.
8Robert Frank, ‘Beeple NFT becomes most expensive ever sold at auction after fetching over $ 60 million’ (CNBC 11 March 2021) https://www.cnbc.com/2021/03/11/most-expensive-nft-ever-sold-auctions-for-over-60- million.html#:~:text=A%20non%2Dfungible%20token%20by,to%20more%20than%20%2469%20million accessed 24 June 2021

9 Harrison Jordan, ‘No, NFTs aren’t copyrights’ (Tech Crunch 16 June 2021) https://techcrunch.com/2021/06/16/no-nfts- arent-copyrights/ accessed 24 June 2021
10 Photo Credit- Cointelegraph https://cointelegraph.com/news/copyright-infringement-and-nfts-how-artists-can- protect-themselves
11 Jordan (n 9)

12 Ibid
13 Photo Credit: The Biederman blog https://www.biedermanblog.com/nfts-are-the-present-future-of-ip-licensing-might- also-violate-copyright-law/

The Securities and Exchange Commission’s Regulatory Incubation Program for Fintech Startups in Nigeria

Fri, 04 Feb 2022 23:33:19 GMT

A Summary

Introduction

Recently, the Nigerian Securities and Exchange Commission (“SEC”) issued a circular introducing its Regulatory Incubation Program (“the Program”) for Financial Technology (“FinTech”) Companies.1. SEC describes the new regulation as an interim measure to aid the evolution of effective regulation. SEC aims to accommodate innovation by FinTech companies without compromising market integrity and investor confidence in the sector. The Program, which has two stages, i.e. the Initial Assessment Stage and the Regulatory Incubation Phase, was set to commence in the 3rd Quarter of 2021, will run for a period of 1 year. It will admit FinTech companies in line with its guidelines. Mainly, the SEC will supervise eligible FinTech companies to make them regulatory ready and compatible before they become fully established.

Eligibility for the RI Program:
To be eligible for the Program, the Applicant must:
1. Be using innovative technology to offer a new type of product or service, or applying innovation to an existing financial product or service;
2. Be involved in or seeks to be involved in an activity that, if carried on in or from Nigeria, is a financial service which SEC regulates;
3. Be ready to take off with live customers and operate within the purview of the SEC Regulatory Framework;
4. Register as soon as rules guiding the RI Program are released by SEC;
5. Offer a product or service that addresses a problem (compliance or supervision) or brings potential benefits to consumers or the Nigerian Capital Market;
6. Ensure that the product is safe for investors; and
7. Complete the FinTech Initial Assessment Form and discuss the proposal with SEC at an early stage.
An applicant who meets these requirements proceeds to the Initial Assessment Phase.

The Initial Assessment Phase

At this phase, the applicants must fill the FinTech Initial Assessment (“FIA”) Form and pay a processing fee of N200,000 (Two Hundred Thousand Naira). A response will be given to the FIA Form within 15 working days from its submission.

Where a regulatory framework that regulates the product exists, the SEC will guide the applicant, and if no framework exists, the applicant will be directed to fill and submit the Regulatory Incubation (“RI”) Form within 16 working days. The RI Form is to be submitted with an Implementation Plan for the applicant’s product.

The Implementation Plan shall contain

1. A full description of the business and the proposed innovative product, service or business model, including the type of technology;
2. The objectives and parameters for the incubation period;
3. The implementation timeline and critical milestones for testing;
4. The existing/target customers;
5. A Risk Management Framework, clearly stating key risks and how they will be controlled and mitigated, including insurance cover;
6. A description of how the entity will ensure that customers fully understand the risks;
7. A description of how communications with customers will be handled before and during the incubation period, including how the entity will deal with queries, feedback and complaints;
8. A description of the next steps at the expiration of the incubation period; and
9. A clear exit plan if registration is not achieved, including how the entity will fulfil its obligations to its customers.

Upon filing and submission of the RI Form, the SEC will respond within 20 working days of confirmation whether:

1. admission has been granted to the RI Program subject to the Terms and Conditions of Admission;
2. the applicant will be admitted to the RI Program at a future date; or
3. The application is declined.

After the Initial Assessment Phase has been passed, the applicant shall receive a Letter of Admission into the RI Program from SEC and, within three working days from the receipt of the letter, undertake to:

1. be deemed fit and possess relevant skills in financial services and/or technology;
2. act with integrity, due care, and diligence, and provide referee information;
3. provide complete information to clients and commit to sending them regular feedback;
4. provide full disclosure to SEC on the business through an incubation implementation plan;
5. provide the procedure for holding and controlling client assets;
6. comply with all relevant laws and regulations;
7. have an office in Nigeria;
8. comply with Anti-Money Laundering /Combatting the Financing of Terrorism (AML/CFT) requirements; and
9. provide monthly reports to SEC.

Regulatory Incubation Phase

Admitted applicants must comply with all prescribed provisions in the Guidelines. Applicants will receive quarterly feedback on their product or service from the RI Team, and by the 10th month of admission, the applicant shall receive a guideline issued by SEC that will direct its business. At the end of the year, applicants will exit from the Program with clear directives from SEC on the next steps to take. The applicant will commence operations as an entity registered under SEC, and SEC may also terminate its activities where it:

1. is found no longer fit to participate in the process;
2. has breached any restrictions or conditions imposed on its participation;
3. has breached the Laws of the Federal Republic of Nigeria or the Guidelines;
4. deviates from its Implementation Plan; or
5. has not promptly taken steps either to apply for registration or submit a notice of discontinuance after one year of the regulatory incubation process.

Conclusion

The introduction of the Regulatory Incubation program by SEC positions it in a new light as a growth and development facilitator. It provides some form of certainty and a clear pathway for developing the Nigerian security and financial system towards fostering overall economic growth.

Reference

“Circular on the SEC Regulatory Incubation Program” by SEC, accessed 29 June 2021. https://sec.gov.ng/circular-on-the-sec-regulatory-incubation-program/.

Copyright Infringement in Esports and Gaming Content Creation

Tue, 14 Dec 2021 23:22:36 GMT

What Stakeholders in the Nigerian Online Gaming Industry Need to Know

Just recently, Twitch, a global leading streaming platform for gamers and game- related activities, announced that they have received over 1000 copyright claims relating to contents on the platform.

Following the recent increase in the number of content creators and Esports enthusiasts in Nigeria, many of which host content on platforms like Twitch, we decided to highlight key pointers to avoid their works being taken down for copyright violation using the Twitch talking point.

The most commonly used platforms for content creators and Esports enthusiasts are Twitch, YouTube, Facebook Gaming etc. Copyright issues on these platforms are generally governed by the Digital Millennium Copyright Act (“DMCA”), which seeks to protect access to or copying of a copyrighted work.

Interestingly, when it involves gaming and Esports, the issue with the DMCA is mainly with the incorporation of musical contents in gaming contents by Esports tournament organisers and content creators.

While the DMCA provides a safe harbour for web hosts and internet service providers regarding copyright infringement claims provided that they implement certain notice or takedown procedures, it also ensures that there is a process to be followed before claims against infringing copyright contents can be carried out.

The procedure involves the copyright owner mandatorily providing the following information to the relevant platform:

The name, address and electronic signature of the complaining
The infringing materials and their internet location, or if the service provider is an “information location tool”, the reference
Information that will be sufficient enough to identify the copyrighted
A statement saying no legal basis for the usage of copyrighted work in the infringing

Once the above requirements have been satisfactorily provided and established, the hosting platform will then remove such infringing work from their site permanently, and this can negatively affect an Esports tournament organiser and Gaming content creator who may have put in a lot of work to develop the content but made the mistake of incorporating copyrighted work( which is primarily musical works) without a due license.

Consequently, persons in this category must exercise care in developing their contents. A safer approach would be to collaborate with the owners of the copyrighted work by obtaining a license to incorporate their work in the gaming content. However, it is understandable that this may be a problematic approach. That being said, a more manageable approach would be to use works from royalty- free platforms.

CBN Guidelines for Licensing and Regulation of Payment Service Holding Companies

Wed, 06 Oct 2021 22:14:40 GMT

(22pshc22)- The What; The Dos and The Do

INTRODUCTION

There have been notable regulatory developments in the framework for financial technology (Fintech) in recent times in Nigeria. The Central Bank of Nigeria has issued several guidelines implementing its policies for regulating Fintech related services in the Nigerian financial sector.

On August 3, 2021, the Central Bank of Nigeria (“CBN”) took another step furthering its commitment towards the promotion of an effective payment system in the country; by issuing a new governing regime for Payments Service Holding Companies (“PSHCs”), i.e. Guidelines for Licensing and Regulation of Payments Service Holding Companies in Nigeria (the “Guidelines”).

The Guideline seeks to prevent the commingling of activities, facilitate the management of risks within the payment service industry, and enable adequate regulatory oversight on the activities of licensed operators. It will complement the CBN Circular on New License Categorizations for the Nigerian Payments System, and other relevant subsidiary legislation made according to the Central Bank of Nigeria Act (2007) and the Banks and Other Financial Institutions Act (2020), as well as other regulatory instruments issued, from time to time, by the CBN and not forgetting other regulators in the Nigerian financial services sector.

Mainly, the scope of the Guidelines covers regulated activities in the payments service industry, such as; Mobile Money Operations, Switching and Processing, and Payment Solution Services, and any other action as may be subsequently approved by the CBN. Furthermore, a critical effect of this regulatory framework is that it is intended to create an enabling environment for the orderly management of Fintech companies in Nigeria. This Guideline seeks to ensure that no single company exercises a monopoly over all the activities in the payment service industry. Thus, thereby enhancing effectiveness and efficiency by allowing each company to focus on a particular service within a group. Finally, it aids the CBN in exercising its supervisory powers on all companies operating within the Group.

Following the release of this Guideline, companies in the payments services space who intend to operate more than one license category now have clear direction on setting up a Payments Service Holding Company (PSHC), with activities of subsidiaries clearly outlined. It sets the standard for the consolidation of payment service providers operating under the different license categories. The introduction of the regulatory framework aims to promote efficiency amongst operators in the payment services space, improve competition, and deepen financial inclusion in Nigeria.

Here are some provisions of the Guidelines companies intending to operate in more than one license category should look out for:

What is a Payment Service Holding Company?

For this regulation, a Payment Service Holding Company is a company whose principal object clause include the business of a holding company set up to make and manage equity investment in two or more companies, being its subsidiaries, which are Payments Service Providers across the following categories:
1. Mobile Money Operations
2. Switching and Processing
3. Payment Solution Services

Structure and Composition of a Payment Service Holding Company

A PSHC must be non-operating, existing solely to hold controlling equity investment in two or more companies in a parent-subsidiary arrangement. It is not allowed to engage in the day-to-day management and operations of subsidiaries. For it to exist, it must have a minimum of two subsidiaries, including a Mobile Money Operator (MMO) and a Switching company. Also, a PSHC must have a board size of between 5 and 10 or shall include, at least, an individual with requisite experience in the business(es) of the subsidiary payments service companies within the Group. Finally, a PSHC is permitted to have only two (2) hierarchies. Thus, it may have a subsidiary that is a parent to another subsidiary (i.e. an intermediate company). It is important to note that the subsidiaries of a PSHC are only permitted to have one more intermediate subsidiary.

Licensing and Commencement Operations and Corporate Governance

The Guidelines make extensive provisions on the licensing requirements, such as application fees, licensing fees, and other required information necessary for acquiring a PSHC license. Before commencing operations, a PSHC must provide certain information to the CBN, especially regarding capitalization. Additionally, corporate governance stands essential to the operations of a PSHC. Under the guidelines, the appointment to the board and management positions in a PSHC must align with the requirements of Assessment Criteria for Approved Persons’ Regime for Financial Institutions (The Approved Persons’ Regime), or any other applicable regulation issued by the CBN from time to time. Also, the rules on the disqualification of Board and Management, applicable to Other Financial Institutions (OFIs), shall apply to Payments Service Holding Company. Finally, a PSHC shall comply with the provisions of appropriate CBN Corporate Governance Guidelines and Include its audited financial statements among the contents of its website.

Ownership and Control

Considering how integral payment services companies are to the Nigerian financial system and, by extension, the country’s financial Stability, the CBN, through the guidelines, ensure proper checks on ownership and control of PSHCs. Consequently, prior approval of the CBN is necessary for anyone seeking to obtain up to 5 per cent (5% and above of shareholding in a PSHC. The acceptance of the CBN is also mandatory for any change in ownership, resulting in a change in control of the PSHC. Provided that such shares are acquired through the secondary market, the PSHC shall apply for approval from the CBN within seven (7) days of the acquisition.

Also, except with the prior written approval of the CBN, no Director, Shareholder, or Agent of a PSHC shall enter into an agreement that results in the change of control or transfer of shareholding of five per cent (5%) and above in the PSHC, provided that; in the case of secondary market transfers, the PSHC shall notify the CBN of such a change, within seven days.

Furthermore, subsidiaries of a PSHC are prohibited from acquiring shares in the PSHC or shares of other subsidiaries of their parent PSHC and the intermediate company of another subsidiary. And where a PSHC loses control of any of the two payments services subsidiaries – switching and processing company or mobile money operator – in the Group, for a period exceeding six (6) consecutive months, the PSHC shall cease to be a PSHC and will be required to return its license to the Central Bank of Nigeria for cancellation.

Also, suppose a PSHC with only two subsidiaries loses its controlling Interest in either of the subsidiaries for a period exceeding six (6) consecutive months. In that case, the PSHC shall cease to be a PSHC and will be required to return its license to the Central Bank of Nigeria for cancellation.

Permissible Activities

Payment Service Holding Companies can hold equity in financial and technological subsidiaries that facilitate or enhance innovative digital financial services. They are also allowed to provide broad policy direction, shared services and enter into technical or management service contract with any of its subsidiaries, with the prior written approval of the CBN, in respect of the following areas:

a. Human Resources services
b. Risk Management services
c. Internal Control services
d. Compliance services
e. Information and Communication Technology
f. Legal services
g. Facilities (office accommodation including electricity, security, cleaning services in that accommodation).

Non-permissible Activities

The extent of a PSHC’s operation is not universal. For example, all Payment Service Holding Company is prohibited from:

Arrogating to itself any of the powers or functions of the Board of Directors, or internal management responsibilities and obligations of any of its subsidiaries or associates of any such subsidiary.
Deriving or receiving income from sources other than the following:
a. Dividend income from its subsidiaries/associates;
b. income from shared services, where applicable;
c. Interest earned from idle funds invested in government securities or placement with licensed financial institutions;
d. Patents, royalties and copyrights;
e. Profit on divestment from subsidiaries/associates; and
f. Any other source as may be approved by the CBN.
Being involved in the administration and approval process of its subsidiaries, if applicable.
Requiring its subsidiaries or any of its agents to take directives or act on the instructions of the PSHC in its internal decision-making process, without prejudice to the definition of control as defined in the Guidelines.
Engaging the services of any employee of any of its subsidiaries.
Purchasing/disposing of assets from/to its subsidiaries without the prior written approval of the CBN.
From appointing as a director, any person, who at the relevant time is a director of any of its subsidiaries, except with the prior written approval of the CBN. Where such an appointment is approved, the aggregate number of directors from the subsidiaries and associates, at any point in time, shall not exceed thirty per cent (30%) of the membership of the Board of Directors of the PSHC.

Prudential Regulation

Where a PSHC wholly owns its subsidiaries, then it must have a minimum paid-up capital that exceeds the sum of the minimum regulatory capital/total equity of all its subsidiaries, as may be prescribed from time to time by the CBN. Additionally, where a PSHC owns less than one hundred per cent (100%) of its subsidiaries, its minimum paid-up capital shall exceed the summation of its proportionate holding in the subsidiaries. Excess capital in one subsidiary shall not be used to make up a shortfall in another subsidiary. Furthermore, it is the capital of the PSHC that is applied to the subsidiaries. A PSHC is obligated to ensure that its subsidiaries comply with the minimum capital requirements for each license category in the Group.

Finally, other key provisions in the Guidelines relate to filing requirements, and this requires a PSHC to make quarterly filings to the CBN, which shall include information on compliance with corporate governance guidelines, whistleblowing, assets and liabilities of the PSHC and its subsidiaries, risk management, internal control, and intra-group transactions.

CONCLUSION

Overall, developing an effective payment system appears to be one of the main focuses for the Nigerian Central Bank. Given the rapid adaptation of technology in resolving payment problems in Nigeria, payment service companies must do well ensure they remain abreast with the CBN guidelines that govern their specific area of operation as the CBN will continue to adapt its rules to ensure that these companies contribute to the maintenance of Nigeria’s financial stability.

An overview of the Intersection between Digital Assets and Intellectual Property

Sat, 06 Mar 2021 00:35:02 GMT

The role of intellectual property legislation (IP) in protecting intangible creations cannot be overemphasized.

Introduction

The role of intellectual property legislation (IP) in protecting intangible creations cannot be overemphasized. It continues to aid the creative economy, spurring creativity and improving innovation, leading some to argue that intellectual property forms a core part of economic growth and prosperity. Considering the continuous evolution of the frontiers of science and technology and their applicability, we find that the coverage of IP continues to expand; for example, this is clear from the global popularity and adoption of Digital Assets, which arguably have several IP connotations to them.

Notwithstanding the above, one can also argue that in addition to that mentioned above, the rapid rate of globalization, alongside the continual seamless and genuinely global economy, also promotes the creation and increased adoption of digital assets, albeit with exploitable loopholes. Here, we examine digital assets regarding Non-Fungible Tokens (NFTs) and their protection from potential infringement.

WHAT ARE DIGITAL ASSETS?

Digital assets are described as electronic files of data that can be owned and transferred by individuals and used as a currency to make transactions or as a way of storing intangible content, such as computerized artworks, videos or contract documents. [1] Essentially, they are digital or electronic formats of data. An examination of the digital assets space will show the most popular forms of digital assets to be cryptocurrencies, [2] And Non-Fungible Tokens (NFTs), both of which leverage blockchain technology.
Cryptocurrency has been referred to as decentralized digital money based on blockchain technology. [3] Non-Fungible Tokens, on the other hand, are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. [4]

INTELLECTUAL PROPERTY AND DIGITAL ASSETS: THE INTERSECTION

As earlier stated, coverage of IP continues to expand; the adoption of Digital Assets, which arguably have several IP connotations, is a clear indication of this. For example, concerning cryptocurrency, two primary forms of IP rights are arguably protected thereunder to wit: Patents and Trademarks. For patent rights hereunder, the developers of specific cryptocurrencies may lay claim to any inventive aspect created via the inventive step taken to provide the other requirements for patents are met, i.e. novelty and industrial application.

Furthermore, one can argue that the existence of several cryptocurrencies begs the need to identify the origin, hence the intersection between Trademarks and cryptocurrency. Cryptocurrency developers adopt unique marks, logos, signs, names, and symbols as registered trademarks to distinguish themselves from their contemporaries. This establishes origin and protects them from wrongful passing off and exploitation of their goodwill built in respect of the said currency, an act of infringement against which they can lay claim by suing for Trademark infringement.

NFTs, on the other hand, have a different IP connotation. Here, the predominant IP right in play is Copyright; however, Trademarks and Industrial Designs remain almost as relevant.

Copyright and NFTs

While research shows that NTFs predominantly concern themselves with existing artworks, artworks with copyrights vested in their authors, it is essential to note that NFTs could apply to things other than Art. For example, it could apply to other multimedia assets like Music, Videos, and real estate for the transfer of title deeds. Also, NFTs are used in the medical sector to store medical records in the international trade and supply chain by attaching an immutable digital stamp to products for verification purposes or tracking products through the supply chain process, etc. Essentially, it applies to anything unique that can be stored in a digital form and arguably holds value. Notwithstanding, the application of NFTs as a tool for exploring modern-day Art appears to get more of the mainstream buzz making Copyright a vital IP consideration in this regard.
Mainly, Copyright protects any original work of Art in a fixed medium; thus, the representation of a traditional artwork via an NFT begs the questions that need answering: Is Copyright created separately in the NFT? And if yes, does the owner of the conventional artwork transcribed into an NFT have any claim in Copyright to the NFT? Furthermore, is the said NFT minted then purchased by initial and subsequent buyers via a trading platform? The above question underpins the basis of several misconceptions in the NFT space, as we will show below.

Some misconceptions about NFTs

There is a common misconception concerning the rights acquired upon the purchase of an NFT to wit: the assumption by buyers that they receive the underlying work of Art and all its accompanying rights. However, this is not correct; instead, what the buyer purchases are the metadata associated with the minted NFT, as transaction surrounding NFTs do not usually involve a transfer of exclusive rights in the primary Art.

A clear example of this conundrum is the CryptoPunk dilemma. Larva Labs, which is arguably one of the most well-known NFT creators and the creators of the most traded NFT in the world, the CryptoPunk (V1) issued a Digital Millennium Copyright Act (DMCA) notice – (i.e. a takedown notice usually given by copyright holders) on the ground that it no longer wants it to be traded as they may affect the V2 series recently developed. The Holders of the original V1 CryptoPunk NFTs have now filed a counter DMCA notice to this. This matter is still ongoing.
The core question above will be who owns Copyright in the NFT or whether Copyright is automatically transferred upon purchase of the NFT. In the UK, for example, the transfer of Copyright under the Copyright Designs and Patents Act 1988 (CDPA) requires a copyright assignment “in writing signed by or on behalf of the assignor”. [5] A similar provision is contained in Section 11 (3) of the Nigerian Copyright Act.

Because of this, it may not be easy to assess the legal formalities needed to transfer the Copyright of NFTs because the buying, holding and selling of these digital assets takes place via a non-physical process and, as such, are carried out via blockchain. [6] Which is a digitally distributed, decentralized, public ledger that facilitates the process of recording transactions online. [7] It cannot be plausible or reasonable to conclude that there is an automatic assignment of copyrights in the NFTs to the buyers or from the owner of the work of Art to the NFT minter except, of course, where the case is that the owner of the artwork and the NFT minter is the same person. At best, an arguable right to be deduced from the NFT transaction, i.e. the sale to the buyer over the respective platform, may be the allowance of a non-exclusive license considering that this can legally be inferred from the conduct of the owner of the Copyright as seen in section 11 (4) of the Nigerian Copyright Act.

Trademarks and NFTs

We find that during minting NFTs, certain established brands might launch artistic forms of existing products with their trademark. Similarly, certain artists create NFTs with the marks of popular brands causing some to claim against such NFTs. For example, there is an ongoing case of trademark infringement between Nike and StockX, wherein Nike sued StockX for creating NFTs that are graphical replication of Nike Sneakers. [8] StockX, on the other hand, claims that the NFTs are only a means of authenticating the original shoes. Another example is the Trademark Infringement case of Hermès International, Et Al. v. Mason Rothschild [9] in January 2022. Here, the French luxury designer fashion house sued Mason Rothschild, an NFT digital artist, for Trademark infringement, the latter having created, minted and sold “METABIRKINS” as NFTs, which is a digital interpretation of Hermès’ high-end Birkin handbag without authorization. Hermès argue that by making the collection of METABIRKINS NFTs and by using BIRKIN as part of its trade name, Rothschild has “simply ripped off its famous BIRKIN trade mark by adding the generic ‘meta’ to the famous trade mark BIRKIN, which simply means BIRKINS in the metaverse” and has falsely created an impression that the goods sold by Rothschild are authorized, sponsored, or approved by Hermes when in fact, they are not. [10] .

On the other hand, Rothschild argued that his MetaBirkins are artworks that provide commentary “on the animal cruelty inherent in Hermès’ manufacture of its ultra-expensive leather handbags.” Implying that the NFTs are not actual handbags and his MetaBirkins are not commercialized assets in the first instance, but Rothschild’s speech, Art, and expression, all of which all enjoy protection, are what made the NFTs commercialized. Rothschild also relies on the precedent outlined in Rogers v. Grimaldi, which permits the use of trademarks in artistic works provided that the trademark has no artistic relevance or otherwise overtly creates a false designation of origin. He also cites Dastar Corp. v. Twentieth Century Fox Film Corp., which holds that only tangible, physical goods are actionable under the Lanham Act. [11] A decision, in this case, has not been reached as the case is still ongoing at the United States District Court, SD. New York. Nevertheless, this clearly shows the interplay between NFTs and trademarks.

Industrial Design and NFTs

It is expected that industrial designs that have been registered and possess distinctive features will be protected from replication in any form without the holder’s knowledge. This reasoning is premised on the fact that certain products have designs that distinguish them even without trademarks. For instance, mischievous people might take advantage of popular designs and make them into NFTs without using the trademark of the copied product. A claim that such individuals might want to rely on as defence.

INFRINGEMENT AND JURISDICTION IN NIGERIA

To establish infringement, three requirements must be met. First, the infringer must have taken advantage of one of the author’s exclusive rights without authorization. Second, there will be a causal connection between the NFT and the original artwork; in other words, the potentially infringing work has to have been created directly from the original. And third, the work, or a substantial part of it, will have been copied. [12] S. 251 (1) (f) of the constitution of the federal republic of Nigeria provides that the Federal High Court has jurisdiction over matters arising in Copyright, patent, designs, trademarks and passing-off, and industrial designs. This is further affirmed by S. 7 of the Federal High Court Act and s. 46 of the Copyright Act, S. 67 of the Trademarks Act and s. 32 of the Nigerian Patents and Designs Act.

However, the protection of IP in NFTs in Nigerian Courts may face some challenges and not be popular because IP remains jurisdictional and most minting and selling still go on via foreign NTF platforms, predominantly “OpenSea”. Thus, IP infringement and protection procedures are covered by the laws applicable to the foreign planforms making it challenging to initiate protection proceedings in Nigeria. Nevertheless, there are upcoming NFT marketplaces such as “Ayoken”, which just secured funding of about $1.4m to expand its operations and develop its team in Nigeria to handle local-based NFT transactions. With this in view, there is a more straightforward pathway to enforcing IP rights attached to NFTs in Nigeria following an infringement.

CONCLUSION

While the growth of the digital assets is expected to cause something close to a seismic shift in the global IP regime, a lot remains unclear. More so, there are few disputes concerning IP rights over digital assets, further delaying the pace at which necessary clarification emerges. Nevertheless, the importance of acknowledging the intersection between IP and Digital Assets remains clear and unwavering; a relationship will only continue to deepen as time goes by and the world becomes less centralized.

References

[1] Matthew Vincent, ‘What are Digital Assets?’ (October 2021) <ttps://www.ft.com/content/2691366f-d381-40cd-a769-6559779151c2> (accessed 12 ^th April 2022).
[2] Cryptocurrency includes Bitcoin and stablecoins.
[3] Kate Ashford, and John Schmidt, ‘What is Cryptocurrency?’ <https://www.forbes.com/advisor/investing/cryptocurrency/what-is-cryptocurrency/> (accessed 12th April 2022)
[4] Rakesh Sharma, ’Non-Fungible Token (NFT) Definition’ <https://www.investopedia.com/non-fungible-tokens-nft-5115211> (accessed 12th April).
[5] Andres Guadamuz. (2021 December). Non-fungible tokens (NFTs) and copyrights. Retrieved from https://www.wipo.int/wipo_magazine/en/2021/04/article_0007.html
[6] Ibid 1.
[7] Sam, ‘Blockchains meaning: What exactly are Blockchain Currencies?’ (March 2022) <https://www.marca.com/en/technology/2022/03/05/62237556268e3e8b308b45ec.html> (accessed 12th April 2022).

[8] Blake Brittain, ‘StockX strikes back at Nike in lawsuit’ (31st March 2022), https://www.reuters.com/legal/litigation/stockx-strikes-back-nike-nft-lawsuit-2022-03-31/ (accessed 12th April)
[9] “Hermes International, et al., Plaintiffs, v. Mason Rothschild, Defendant” Hermes Int’l v. Rothschild, 22-cv-384 (AJN), (SDNY 10th February 2022)
[10] NFTs and Trademark matters in the Metaverse – Arian F. Jabbary and Robert S. Weisbein of Foley & Lardner LLP
[11] NFTs and Trademark matters in the Metaverse – Arian F. Jabbary and Robert S. Weisbein of Foley & Lardner LLP
[12] World economic forum: what do you actually own when you buy NFTs? (n.d). Retrieved from https://www.weforum.org/agenda/2022/02/non-fungible-tokens-nfts-and-copyright/

Written by:
Nosa John Graham Garrick LLM (Durham, UK)
Managing Partner, F.A. Garrick & Co

Attracting Investments Through Corporate Governance

Wed, 16 Dec 2020 23:57:44 GMT

What Companies and Start-Ups Seeking Funding in Nigeria Need to Know.

Introduction:

Corporate governance refers to the set or system of rules, practices, and processes that direct, controls, or determines a company’s operations and ensures balancing the various company stakeholder interests. i.e. shareholders/Investors, senior management executives, customers, suppliers, financiers, the government, and the community. A critical reason for corporate governance by companies, especially those seeking funding, is to improve investor confidence in the said Company. Between 2020 and Q1 2021, the Nigerian start-up ecosystem witnessed several fund- raising milestones. There is no end to this in sight. Many have argued that better investor protections increase the readiness of investors to provide financing to companies. Consequently, companies (including private companies and start-ups) seeking investments/funding need to ensure compatibility with Corporate Governance best practices to increase their attractiveness for investor financing.

In 2019, the Nigerian Minister of Trade and Investment, Mr Okechukwu Enelamah, issued the Regulation on the Adoption and Compliance with the Nigerian Code of Corporate Governance of 2018 “NCCG 2018” initially approved by the Financial Reporting Council of Nigeria (“FRCN”). The focus of this Regulation was to institutionalise an across board corporate governance standard for all Nigerian companies considering that the previous sector-specific codes were limited in their application. The NCCG 2018’s application extends to entities listed therein to wit: all public companies (listed and unlisted); all private companies that are holding companies of listed companies or other regulated entities; all concessioned or privatised companies; and all regulated private companies (i.e. private companies that file a return with any regulator other than the Corporate affairs commission and the Federal Inland Revenue Service. While generic start-ups not contained hereunder, the need to have sound corporate governance remain critical for funding by investors.

The Code provides for a principle-based “Apply and Explain” approach which cuts across six core areas, all of which affect investor confidence to wit: Board of Directors and Officers or the Board, Assurance; Relationship with Shareholders, Business Conduct and Ethics, Sustainability and Transparency.

1. Board of Directors and Officers or the Board:

The Board’s role is to give sound entrepreneurial and strategic business leadership to a company; investors look to find this trait and capacity in the board composition. However, beyond this, the Board is also required to promote an ethical culture and drive responsible corporate citizenship, which all add up to the Company’s corporate governance point. Hereunder, the NCCG 2018 makes recommendations, many of which could impact investor confidence in the Company and affect their For example, the Code recommends that:

The Board should be of sufficient size to effectively undertake and fulfil its business; to oversee, monitor, direct and control the Company’s activities and be relative to the scale and complexity of its operations.1 [Note: As opposed to preceding codes that prescribe a minimum or a maximum number of directors comprising the Board, the NCCG 2018 is more focused on the relativity of the Board’s size to the Company’s ];
The Board should promote diversity in its membership across a variety of attributes relevant for promoting better decision- making and effective governance. These attributes include a field of knowledge, skills and experience, and age, culture, and The Board should have the policy to govern this process and establish measurable objectives for achieving diversity in gender and other areas.2 [Note: This particularly instructive considering that there exist diversity-led investors. We find that there are investors who, beyond the idea or business of the Company, look to see how much effort is placed on diversity by the Company.];
No individual or small group of individuals should dominate the Board’s decision-making and the positions of the Chairman of the Board3 and the Managing Director/Chief Executive Officer (MD/CEO) of the Company should be separate such that no person can combine the two positions.4 [Note: The main focus here is to spread control and reduce absolutism to promote objectivity in achieving the Company’s goals. This creates confidence in the investors in that their interest is better to secure with this dilution.]
The Chairman of the Board should be a NED and not be involved in the Company’s day-to-day operations, which should be the primary responsibility of the MD/CEO and the management team.5 Also, generally, the MD/CEO or an Executive Director (ED) should not subsequently be the Chairman of the same Company.6 However, where the Board decides that a former MD/CEO or an ED should become Chairman, the Company should adopt a cool-off period of three years.7

2. Assurance:

Assurance covers issues such as risk management, internal and external audits and Whistleblowing. Some of the critical points hereunder that, if implemented, could positively affect investor attitude and confidence. For example, the Board is encouraged to:

Establish a risk management framework that defines the Company’s risk policy, risk appetite, and risk limits and identifies, assesses, monitors, and manages critical business risks to safeguards shareholders’ investments and the Company’s assets.8
articulate, implement and review the Company’s internal control systems to strengthen the risk management framework;9
conduct at least annually, or more often in companies with complex operations, a thorough risk assessment covering all aspects of the Company’s business and ensure that mitigating strategies have been put in place to manage identified risks10
Ensure the internal audit function should be headed by a member of senior management who is a professional with relevant qualifications, competence, objectivity and experience; and is registered with a recognised professional body.11
Ensure there is an external assessment of the effectiveness of the internal audit function at least once every three years by a qualified independent reviewer to be appointed by the Board.12
Appoint External auditors to subject to the extent applicable laws.13 And that to protect the integrity of the external audit, the Company may retain such external audit firms for no longer than ten years continuously.14 External audit firms disengaged after ten years of continuous service may not be considered for reappointment until seven years after their disengagement.15

3. Relationship with Shareholders:

One way to attract investor confidence is to show the Company has a positive demeanour towards engaging shareholders. The NNCG 2018 recommends that:

General Meetings should be conducted in an open manner allowing for free discussions on all issues on the agenda. Sufficient time should be allocated to shareholders, particularly minorities, to participate fully and contribute effectively at such meetings.16
The venue of a General Meeting should be accessible to shareholders to ensure that shareholders are not disenfranchised on account of the choice of venue.17
The Board should develop a policy that ensures appropriate engagement with shareholders.18

4. Business Conduct and Ethics:

The presence of professional business and ethical standards advances the protection of and enhances the Company’s reputation while simultaneously fostering good conduct and investor confidence. The NCCG 2018 recommends that:

The Board should model a top-down commitment to professional business and ethical standards by formulating and periodically reviewing the Code of Business Conduct and Ethics.19
The Board should be responsible for monitoring adherence to the Code of Business Conduct and Ethics to ensure that breaches are effectively sanctioned.20

5. Sustainability:

Sustainability road map is one attractive feature companies and start-ups looking to get funding should have. This road map may concern the environment, social welfare, occupation, health, etc. The NCCG 2018 recommends that:

The Board should establish policies and practices regarding its social, ethical, safety, working conditions, health and environmental responsibilities, and policies addressing corruption.21
The Board should monitor the implementation of sustainability policies and report the extent of compliance with the guidelines.22

6. Transparency:

The central focus herein concerns stakeholder communication and disclosures. Investors require constant information to keep abreast of the Company’s activities and are entitled to the Company’s disclosures where necessary. Of all the modes of attracting investor confidence, this appears to be the most significant. The NCCG 2018 recommends that:

The Board should adopt and implement a stakeholder management and communication policy.23
The Board should ensure that the reports and other communication issued to stakeholders are in clear and easily understood language.24
The Board should ensure that the Company’s annual report includes a corporate governance report that provides clear information on the Company’s governance structures, policies and practices, and environmental and social risks and opportunities.25
The Board should use its best judgment to disclose any material matter even though not explicitly required by this Code to be disclosed if, in the Board’s opinion, it can affect the present or anticipated financial condition of the Company or its status as a going concern. The onus of proof of such possible adverse effect is on the Board.26
The Company should establish policies and procedures for the identification, communication and response to concerns from stakeholders.27

Conclusion:

Overall, corporate governance covers principles set by companies to direct their operations. A company or start-up that prioritises strong and transparent corporate governance makes better ethical decisions that benefit its operations and its stakeholders. Critically, this positions the Company as an attractive ground for investment, especially where the said Company’s financial projections are simultaneously promising. It is essential to note that although the NCCG imposes no penalty for non-compliance with its provisions, the NCCG states that the implementation of the NCCG will be monitored by the FRCN through the various sectoral regulators and registered exchanges with such power impose appropriate sanctions for non-compliance.

References

1 Principle 2 Recommendation 2.1 NCCG 2018

2 Principle 2 Recommendation 2.4 NCCG 2018

3 Principle 2 Recommendation 2.6 NCCG 2018

4 Principle 2 Recommendation 2.7 NCCG 2018

5 Principle 3 Recommendation 3.2 NCCG 2018

6 Principle 3 Recommendation 3.3 NCCG 2018

7 Ibid

8 Principle 17 Recommendation 17.1 NCCG 2018

9Principle 17 Recommendation 17.4 NCCG 2018

10 Principle 17 Recommendation 17.5 NCCG 2018

11 Principle 17 Recommendation 17.8 NCCG 2018

12 Principle 18 Recommendation 18.6 NCCG 2018

13 Principle 20 Recommendation 20.1 NCCG 2018

14 Principle 20 Recommendation 20.2 NCCG 2018

15 Ibid

16 Principle 21 Recommendation 21.1 NCCG 2018

17 Principle 21 Recommendation 21.2 NCCG 2018

18 Principle 22 Recommendation 22.1 NCCG 2018

19 Principle 24 Recommendation 24.1 NCCG 2018

20 Principle 24 Recommendation 24.2 NCCG 2018

21 Principle 26 Recommendation 26.1 NCCG 2018

22 Principle 26 Recommendation 26.3 NCCG 2018

23 Principle 27 Recommendation 27.1 NCCG 2018

24 Principle 27 Recommendation 27.2 NCCG 2018

25 Principle 28 Recommendation 28.1 NCCG 2018

26 Principle 28 Recommendation 28.4 NCCG 2018

27 Principle 28 Recommendation 28.9 NCCG 2018

A Commentary on the CBN Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria 2020

Sun, 11 Oct 2020 01:13:23 GMT

In furtherance of its mandate to promote financial inclusion and following the recent advancements

INTRODUCTION:

In furtherance of its mandate to promote financial inclusion and following the recent advancements concerning the interplay between Financial Technology (Fintech) and access to financial services in the Nigerian Banking Sector, the Central Bank of Nigeria (CBN) recently reviewed and updated the 2018 Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria (2018 Guidelines). The newly issued Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria 2020[1] (the 2020 guideline(s), New rules, Updated rules) now serves as the effective ruleset guiding the operationality of Payment Service Banks (PSBs) in Nigeria. Despite replacing the 2018 guidelines, the 2020 guidelines are not a complete overhaul of its predecessor, seeing that there exists a great deal of similarity between them. Nevertheless, there are a few changes that need highlighting.

BUSINESS CONDUCT (FAIR COMPETITION):

The 2018 guidelines only restricted related entities of a PSB from offering preferential treatment to its subsidiary. However, the updated guideline now stops parent, associate, or a related entity to a PSB from offering discriminatory and/or differential product or service pricing to other non-related entities, PSBs or any CBN licensed institution. And non-compliance in this regard could lead to the revocation of PSB’s license.[2] In addition to raising transfer pricing considerations, this update is a update to the 2018 rules in that it reiterates, albeit more expansively, the desire to promote fair competition in the Nigerian Banking sector.

REVOCATION OF LICENSE

Under the 2018 guideline revocation of license was stated to be “in line with the provisions of BOFIA[3] or through voluntary liquidation subject to the approval of the CBN”.[4] However, the 2020 guideline now provides that revocation of PSB license may follow:

a. Failure to comply with any of the provisions of the PSB Guidelines or other circulars and Guidelines issued by the CBN from time to time.
b. Failure to comply with the provisions of the BOFIA.
c. Voluntary liquidation by a PSB with the prior written approval of the CBN

Essentially, as opposed to its predecessor which only provides at best, generic instances for PSB license revocation; the 2020 guideline not only expands the grounds for revocation, it brings some form of clarity and specificity concerning the subject of license revocation.

ELIGIBLE PROMOTERS

The 2018 guideline did not list switching companies as eligible to promote a PSB. Thereunder, switching companies already having a record or data of the financial system operators were not allowed to own a PSB to prevent conflict of interest.[5] However, this is no longer the case. The 2020 guideline now expressly lists switching companies as eligible promoters of a PSB.[6] Mainly, this supports the possible increase in the establishment of PSBs and potentially, occasions the advancement of access to financial services in Nigeria.

SUPERVISION OF PAYMENT SERVICE BANKS

As an update to the 2018 guideline, the new ruleset encourages systemic synergy in the banking sector. Unlike the 2018 regulation, its successor now mandates all PSBs to interface with the Nigeria Inter-bank Settlement System (NIBSS) platform to promote interconnectivity and interoperability of operations within the Nigerian banking system.[7] Furthermore, it subjects to regulation the charging rates to be imposed by a parent, associate or related entity of any PSB on any CBN regulated institution and/or their customers on mobile payment and other payment platforms. These charges are now subjected to the “Guide to Charges by Banks, other

Financial and Non-bank institutions (where applicable) or subject to the prior written approval of the CBN as the case may be.[8]

CONCLUSION

Overall, the 2020 guidelines do not completely upturn the provisions of its 2018 predecessor. From the highlighted changes, one thing is however exact concerning the regulatory trajectory of the CBN. It is clear that the CBN’s demeanour towards the role of PSBs in promoting financial inclusion in Nigeria is expansive and enabling oriented.

References

[1] Issued August 27, 2020
[2] Para. 8 B 2020 Guidelines
[3] Banks and other financial Institution Act 1991 (as amended)
[4] Para 15 2018 Guidelines
[5] Para 5 2018 Guidelines
[6] Para 5 (vi) 2020 Guidelines
[7] Para 10.5 2020 Guidelines
[8] Para 10.6 2020 Guidelines

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References:

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Introduction:

1. Board of Directors and Officers or the Board:

2. Assurance:

3. Relationship with Shareholders:

4. Business Conduct and Ethics:

5. Sustainability:

6. Transparency:

Conclusion:

References

A Commentary on the CBN Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria 2020

In furtherance of its mandate to promote financial inclusion and following the recent advancements

INTRODUCTION:

BUSINESS CONDUCT (FAIR COMPETITION):

REVOCATION OF LICENSE

ELIGIBLE PROMOTERS

SUPERVISION OF PAYMENT SERVICE BANKS

CONCLUSION

Introduction

Introduction