Brands/Products
MultiChoice Wins Suit Against NBC’s 2.5% Annual Gross Income Demand
By Adedapo Adesanya
African broadcasting giant, MultiChoice, has won a suit against the National Broadcasting Commission (NBC), which requires broadcasters to pay 2.5 per cent of their Gross Annual Income as an Annual Operating Levy to the Nigerian government.
Justice James Omotosho of the Federal High Court Abuja struck down Section 2 (10) (b) of the National Broadcasting Code, 6th Edition, which was challenged by MultiChoice.
This judgement followed a suit filed by MultiChoice Nigeria Ltd and Details Nigeria Limited (GOtv) against NBC.
Delivering the judgment on Wednesday, Justice Omotosho ordered that the provision be struck down and replaced with Net Annual Income instead of the existing Gross Annual Income.
This means that the 2.5 per cent levy will be taken out of the total amount of revenue after the companies have deducted all operational expenses, taxes, and obligations against Gross Annual Income, which is the total earnings before deductions.
The court also barred the NBC from demanding the plaintiffs’ VAT remittance, FIRS reports, bank statements, audit adjustment journals, trial balances, and general ledgers for the purpose of computing the plaintiffs’ annual income, other than the annual audited accounts of the companies as stipulated in the NBC Code.
The judge stated that NBC can only access other financial documents of MultiChoice through sister agencies such as the Federal Inland Revenue Service (FIRS).
In the suit, the plaintiff’s counsel, Mr Moyosore Onigbanjo (SAN), sought several reliefs, including a determination of whether the NBC had the authority to demand any financial documents other than the annual audited accounts.
He also sought clarification on whether the term “gross annual income,” as used in the NBC Code, was fair and equitable.
“Income, as provided by the NBC Code 6th Edition, is not defined, nor is it defined in any previous editions or in the NBC Act of 2004,” the counsel submitted in court.
Mr Onigbanjo also asked the court to determine whether the waiver or agreement between the plaintiffs and the NBC to pay a flat rate of N800,000,000 (Eight Hundred Million Naira) as an Annual Operating Levy for the years 2020–2023, including certain previous years, was binding on both parties.
Counsel to the NBC, Mr Victor Ogude (SAN), argued before the court that the agreement was not binding on the NBC, as the NBC’s acting Director-General who agreed on its behalf acted beyond his powers.
He contended that the NBC was entitled to the full amount payable.
Mr Ogude also urged the court to uphold the NBC’s oversight role over MultiChoice and Details Nigeria.
Delivering his verdict on Wednesday, Justice Omotosho, said with his experience as a trained economics teacher, running a business like the one operated by the plaintiffs requires significant capital and expenses. It is only fair, he said, that these expenses be deducted before the Annual Operating Levy is paid.
He stated that net income is the actual profit after subtracting all business expenses, adding that the taxable amount cannot be determined when calculating gross profit but should be based on net profit.
The judge emphasized that the Annual Operating Levy charged by NBC is a form of tax imposed on broadcasters.
He then held that it would be unjust to impose it on their gross income.
“The proper and lawful income to impose a levy on is the net income,” he said, adding that this aligns with tax laws and global best practices. “In the United States, for instance, companies pay a flat rate of 21 per cent on their profits, determined after all expenses have been deducted. Similarly, in the United Kingdom, a 25 per cent corporation tax is imposed on company profits.”
“From this Court’s knowledge of economics, gross income implies all money that accrues to a person or business within a specific time. This gross income typically does not account for company expenditures such as production costs, rent, vendor payments, staff salaries, taxes, and other costs. It is only after all these payments are made that the company determines its profit, known as net income.”
“Consequently, this Court holds that Section 2 (10) (b) of the National Broadcasting Code, 6th Edition, which demands 2.5 per cent of Gross Annual Income from broadcasters as an Annual Operating Levy, is unconscionable, unfair, and stifling to the plaintiffs,” Justice Omotosho ruled.
Furthermore, Justice Omotosho noted that the plaintiffs had provided credible and documentary evidence showing they had faithfully paid their Annual Operating Levy (AOL) without fail, and the defendant did not challenge these documents.
He said the NBC’s claim that it was entitled to N4 billion, as stated in its letter dated August 15, 2023, was unsupported by any evidence.
Regarding the agreement, Omotosho ruled that when parties express their intention and enter into a binding agreement, neither party is allowed to abandon the agreement simply because one or more of its terms are unfavourable.
The judge declared that the agreement between the defendant and MultiChoice, or the waiver on the payment of N800,000,000 (Eight Hundred Million Naira) throughout their current “DTH license”, is binding on both parties.
He also restrained NBC from demanding any additional sum from the plaintiffs as AOL for the years in which they have already made payments.
He issued a perpetual injunction restraining the NBC, its servants, agents, or privies from sanctioning, fining, or suspending the plaintiffs’ license, contrary to the court’s judgment on the issues raised.
By Modupe Gbadeyanka
The decision of the federal government to suspend the ban on alcohol produced in sachets has been welcomed by the Nigeria Employers’ Consultative Association (NECA).
The Director-General of the group, Mr Adewale-Smatt Oyerinde, described it as a right step in the right direction because it respects existing National Assembly resolutions and restores regulatory clarity.
Recall that recently, the Office of the Secretary to the Government of the Federation (OSGF) ordered the suspension of the policy due to concerns raised by the House of Representatives Committee on Food and Drugs Administration and Control.
In a statement, the NECA chief said the immediate suspension of all enforcement actions relating to the proposed ban on sachet alcohol and 200ml PET bottle products, pending the conclusion of consultations and the issuance of a final policy directive, was good for the industry and the economy.
According to him, the sachet and PET segment of the alcoholic beverage industry accounts for a significant portion of the estimated N800 billion invested in the sector and supports thousands of direct and indirect jobs in manufacturing, packaging, logistics, wholesale and retail.
He stressed that in an economy already struggling with high unemployment and rising business costs, abrupt policy measures that threaten existing jobs and legitimate investments would be counterproductive.
“We fully acknowledge the need to address public health concerns, especially regarding children and young people, but the solutions must be evidence-based and carefully designed so as not to drive activities into the informal and unregulated economy or encourage illicit products.
“We are looking forward to a deepened consultation to enable the protection of jobs, livelihoods and legitimate investments, etc., while also ensuring that public health objectives are effectively and sustainably achieved,” Mr Oyerinde said.
By Adedapo Adesanya
Top building materials and solutions brand, Lafarge Africa Plc, has unveiled a new thematic campaign tagged Beyond Buildings geared towards highlighting its impact and contributions to Nigeria’s infrastructural development.
The campaign was unveiled by the chief executive of Lafarge Africa, Mr Lolu Alade-Akinyemi, on Monday, December 8, 2025, in Lagos.
Mr Alade-Akinyemi noted that the campaign highlights how Lafarge, through innovative and sustainable building solutions, has continued to shape the socio-economic development and progress of Nigerians and Nigeria by contributing to the construction of various structures, including iconic buildings and bridges, stadiums, hospitals, roads, and more, ultimately aiding the nation’s overall growth.
“For over six decades, beyond the manufacturing of building solutions, we have partnered in building the very foundation of Nigeria’s infrastructural development and its future. With our innovative solutions, we have made a significant contribution to our nation’s progress by providing essential building materials for numerous landmark projects.
“This also extends to the expansion of our production capacity nationwide, creating jobs and livelihoods, bringing development to communities, and introducing innovative products to meet the ever-evolving construction needs of Nigeria,” he said.
He described the campaign as a celebration of strength, innovation, history, shared success, and the power of progress, noting that it is the story of the company’s humble beginnings, which dates back to 1960 when its first factory began production.
“The Beyond Buildings campaign is the story of our vision, which is to be the leading building solutions company, driving innovation and operational excellence to create a greener planet and enable national progress. It shifts the narrative from our products to the profound impact we make on human lives. Our materials transform into national landmarks, powering jobs, livelihoods, and development across every state,” he noted.
The thematic campaign Beyond Buildings spotlights how Lafarge has been a strong and steady partner in building infrastructure that underpins Nigeria’s socio-economic progress.
“We are celebrating our enduring legacy and committing to a new era of sustainable and innovative growth. This campaign empowers us to tell that story with confidence and clarity,” he added.
Delivering his remarks, the Commercial Director of Lafarge Africa, Mr Gbenga Onimowo, stressed that the premiere viewing is an opportunity to share the compelling reasons why the company’s story, ‘Beyond Buildings,’ must be told.
Mr Onimowo stated that the campaign aims to reinforce the company’s position at the heart of Nigeria’s construction growth since independence, as demonstrated by its extensive footprint of infrastructure development across every corner of the country.
‘However, our contribution is not merely about building solutions including cement, mortar, plaster of paris and readymix concrete. It’s about the shared future and the national development we actively enable,’ he said.
He stated that the campaign was designed to move the conversation past the physical structures and shine a light on the socio-economic impact that the company helps create.
“Our campaign highlights the immense progress built on the concrete of trust since 1960. Our materials are integral to iconic landmarks like the National Theatre, 1st and 2nd Niger Bridges, Third Mainland bridge, Lekki-Ikoyi link bridge, the National Assembly Complex and countless national, commercial, academic and residential structures nationwide,” he added.
The event was well attended by distinguished stakeholders from the building and construction sector as well as the arts, culture, media and entertainment industry, alongside many of the company’s esteemed customers including veteran Nollywood actors Richard Mofe-Damijo (RMD) and Kate Henshaw.
By Modupe Gbadeyanka
The prestigious Agency of the Year title has been clinched by X3M Ideas, a foremost integrated marketing communications (IMC) firm in Africa, at the Lagos Advertising and Ideas Festival (LAIF) Awards.
LAIF rolled out drums to celebrate its 20th anniversary at the Marriott Hotel, GRA Ikeja, Lagos, on Sunday, November 30, 2025.
The award ceremony, themed 20 Years of Crazy, was attended by several stakeholders in the IMC sector in the country.
At the event, X3M Ideas, established by a veteran in the industry, Mr Steve Babaeko, topped the medal table with 12 Gold, 20 Silver, and 24 Bronze awards, totalling 336 points. The second and third-placed agencies scored 153 and 141 points, respectively.
In 2023, X3M Ideas achieved a similar feat at LAIF and also emerged African Agency of the Year at the 2023 and 2024 editions of the African Cristal Awards.
During this period, Mr Babaeko was named African Personality of the Year, reaffirming the agency’s position as a leader in the African advertising industry.
The 2025 edition of LAIF was also a double celebration for X3M Ideas, as Mr Babaeko, alongside other industry leaders, received special recognitions and commemorative plaques for their invaluable contributions to establishing LAIF as West Africa’s premier creative showcase.
“We are extremely excited to win again at LAIF. This achievement demonstrates how we have continuously evolved, innovated, and remained creative, going ‘crazy’, in line with the theme of the award, by turning every brief into campaigns that resonate across all ages.
“This win also signifies that, together whether as individuals, agencies, or brands, we can shape the future of advertising, push boundaries, and redefine excellence,” Mr Babaeko, who is the Chief Creative Officer of X3M Ideas, said.
Recall, X3M Ideas broke a 70-year jinx to become the first Nigerian and West African agency to win at the Cannes Lions International Festival of Creativity.
The agency continues to put Nigeria on the global map, winning notable awards at the 2024 Lisbon International Advertising Festivals Group.
Additionally, X3M Ideas was recognised as one of Africa’s fastest-growing companies for 2025 by the Financial Times, ranked 31st among 130 companies across the continent.
Its campaign, Blood Sacrifice, also won at the 2025 Cannes Lions Festival, earning top honours at the prestigious ACT Responsible exhibition.
LAIF was established through the bold vision of the Association of Advertising Agencies of Nigeria (AAAN) to celebrate and elevate creativity within Nigeria’s marketing communications industry.
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