Group, others describe NBC new code as inimical to local content development · Code to protect local operators, promote creativity, maximise local contents-NBC

Indications have emerged that Paradigm Initiative, a Pan-African social enterprise working to advance digital rights and inclusion in Africa, individuals, innovators and internet broadcast content creators in Nigeria have unanimously condemned the recently amended National Broadcasting Commission (NBC) Code released to “make provision for local content, increased advertising revenue, and restriction of monopolistic behaviour in the broadcast industry”.

The group stated that the Commission has by this Amendment, laid down unfavourable conditions and requirements for the just budding PayTV Industry in Nigeria; placing unfair and unrealistic burdens on local content producers and by extension, the economy.

The group in a statement said that whilst they’re yet to get an official definition from the Commission for ‘Web/Online Broadcasting’, it is clear from the new provisions that certain clauses will affect the development of the sector.

They noted that the compulsion to prevent exclusive rights to content on PayTV platforms is archaic and regressive, to say the least.

According to them, “Apart from it being a blatant affront to the freedom of copyright holders to use and license their work as they wish; it also chokes innovation in the streaming television business.

“Furthermore, the NBC mandates that all persons wishing to operate web/online broadcasting services in Nigeria must register with the Commission.

“However, there is no public record of the Commission’s consultation with these stakeholders in making these amendments.

“The internet space in Nigeria is developing and innovation is to be encouraged. However, policies like this can greatly discourage the development of technology and technology-based services thereby creating an unfavourable environment for the kind economic growth that is relevant in this age.

“Especially with the new realities faced by Nigeria as a result of the COVID-19 Pandemic, government policies should not only desist from hampering nascent technologies but must in fact, encourage and incentivize same.

“The amendments to the NBC Code do not incentivize innovation in the broadcast and television industry and therefore, we join voices with other stakeholders to call upon the NBC to re-engage its process of amendment by opening dialogue between itself and the key stakeholders who would be affected by these policy directions.

“Furthermore, we call on the NBC to seek policies that will incentivize and not punish local content creation and technology service delivery in the broadcast industry,” the statement reads.

On his part, the Chief Executive Officer of IrokoTV, Jason Njoku, has described the 6th National Broadcasting Commission (NBC) Code released to the public by the NBC on 27 May as a regulation that arose from the incompetence of dark forces and will kill the country’s pay television industry.

Njoku said in a series of tweets that certain provisions of the code, which prohibit exclusivity, compel content sub-licensing to competitors, and empower the NBC to determine sub-licensing fees will discourage investment in local content production.

 

He cited platforms such as Africa Magic, Filmhouse Cinema, Netflix, and Irokotv among others will have no other option except to stop investing in local content.

“National Broadcasting Commission (NBC), in making exclusivity illegal, compelling sub-licensing of content and regulating price is effectively turning private enterprise into state property.

“Interference distorts markets. If implemented, this 100% destroys Pay TV in Nigeria

“Under these proposed terms, it makes zero sense for @irokotv @ROK_DSTV @NetflixNaija @africamagictv @FilmhouseCinema @SilverbirdTV @SceneoneTV or any other platform or independent production house to invest in local content,” Njoku said in the tweets.

Irokotv boss also notified Nigerians that their favourite programmes may be interrupted for the broadcast of political rallies and other ‘national emergencies’ as provided by the NBC Code, stressing that the regulation may force the hands of operators to further increase prices.

“For ‘national emergencies’, 20% of broadcast hours should be dedicated to well… the government. Nationalization in everything but name,” he pointed out.

He argued that the code is bereft of deep thinking and was produced without consultation with stakeholders.

“Zero sense. No consultation. No thought. Nothing

“This our champagne socialism and zero input style of policymaking is the reason Nigeria is stunted in everything. I invest billions of Naira in content then I am compelled to share with everyone else as NBC sets the price. Why? Dark forces or incompetence is at play here. Ridiculous.”

The NBC, in the new regulation, states that every broadcaster must license its broadcast and/or signal rights in any genre of programming to another broadcaster in Nigeria if “the genre of programme(s) enjoy(s) compelling viewership by Nigerians; it relates to a product or service that is objectively necessary to be able to compete effectively on a downstream market; or if it is likely to lead to the elimination of effective competition on the downstream markets”.

The new subsidiary legislation declared that refusal to comply will lead to consumer deprivation and stipulates the imposition of a N10 million for operators who fail to comply.

However, Ayobami Oyeleke, policy expert and a lawyer explained that the NBC, which was created by a military decree in 1992 and later became an Act of the Nigerian National Assembly to regulate Nigeria’s broadcast industry, does not have the power to regulate copyrights of others.

Oyeleke,  said that Nigeria’s Copyright Act allows a content producer to grant to distributors and that the NBC has no legal right to determine who shares what content or even fix certain prices.

Oyeleke,  said, “The agency cannot correct a wrong with another wrong. For such code to be a success, it must approach the National Assembly to amend the Copyright Act. After three readings, the committee would hold a public hearing in that regard before that is done.”

Tosan Igbene, a content creator, also cautioned that the code may truncate Mo Abudu’s Netflix deal and many others in the works.

Igbene said: “Since the code prohibits exclusivity, it means that whatever EbonyLife TV produces could end up on other platforms. That will negate the exclusive agreement. Importantly too, Netflix will hesitate at the prospect of the NBC determining what price it should charge as sub-licencing fees. The fact is that these sections and the whole code, as well as produced without stakeholders’ consultation will kill the Nigerian broadcasting industry.”

Boye Dare, another content creator, argued that no investor will fold its arms and watch a regulation jeopardise its investments.

 

“Netflix are here for business and they will not like anything that threatens their well-being. The NBC Code seeks to legislate on when and whom to sell to as well as the price. The code is a threat to the partnership with EbonyLive TV and of course, Nollywood,” Dare added.

Acting Director-General of NBC, Prof. Armstrong Idachaba, said that the Code Amendment is to protect local operators, promote creativity and maximise local contents.

Speaking further, Idachaba said, the amendment would benefit the media industry in the country as well as attract foreign investments in the digital space.

The amendment, according to him, which is without bias will checkmate monopolistic and anti/competitive behaviour and by extension enhance the local creative industry.

In his words: “The objective behind the amendment is key and pivotal to the development of broadcasting in Nigeria and the reform of the industry.

 

“However, while the NBC acknowledge the mixed reactions by some interests to the release of the amendment, we consider them strategic and healthy for the growth and development of the broadcast industry in Nigeria.

“I want to sincerely commend those who have intellectualised and enriched the discourse with incisive and decent arguments both for and against.”