The litigation team at MJ Onigbanjo & Co is pleased to announce a significant legal victory at the Federal High Court, Abuja. This case centered on the interpretation of Section 14(2) of the National Broadcasting Commission Act 2004 and Section 2(10) of the National Broadcasting Code (6th Edition).

Presided over by Justice Omotosho, the court was tasked with determining whether "Annual Income"—from which the Annual Operating Levy is to be paid—should be interpreted as "Gross Annual Income," of broadcasting stations as argued by the regulator, or "Net Annual Income," as contended by our clients.

 

Following comprehensive legal arguments, the Federal High Court, on November 27, 2024, delivered its judgment, striking out Section 2(10)(b) of the NBC Code (6th Edition) in alignment with our submissions. The court also granted other reliefs sought by our clients, setting a crucial precedent for broadcasting stations all over the country.

This decision has far-reaching implications, including:

• Nullifying the requirement that the Annual Operating Levy being (fixed at 2.5% by the regulator) calculated based on Gross Annual Income.

• Clarifying that "Annual Income" under Section 2(10)(a) should be interpreted as Revenue minus the Cost of Production.

The ruling reinforces the principle that levies should be paid from net income rather than gross income, a development that will positively impact licensed broadcasters.

 

At MJ Onigbanjo & Co, we remain steadfast in our commitment to justice and legal excellence. This victory underscores our dedication to advocating for fair regulatory interpretations and protecting the interests of our clients.