Angst as NBC Defends Controversial Broadcasting Code

Operators and experts are expressing anger and frustration over the provisions of the 6th edition of the Broadcasting Code Amendment as issued by National Broadcasting Commission (NBC), that summarily outlaws exclusivity and makes investing in original content a waste of resources, fundamentally.

Prof. Armstrong Idachaba, acting director-general of NBC

The NBC has however insisted that the broadcasting Code is to protect local operators, promote creativity and maximise local contents.

But the operators which the NBC claims to be protecting said the government agency’s plan is tantamount to “turning private enterprises into state property”.

Under the new code, NBC requires that all online broadcasters to be with it, prevent PayTV and streaming platforms from making content exclusive and compel them to sub-license content at prices it will regulate.

Jason Njoku, chief executive officer, iRokoTV, one of the top PayTV platforms in Nigeria, warned that the new law, if implemented, will destroy PayTV in Nigeria and alleged that NBC in compelling sub-licensing of content & regulating price, would effectively turn a private enterprise into state property.

Njoku said, “Nigeria Broadcasting Commission (NBC) in making exclusivity illegal, compelling sub-licensing of content & regulating price, are effectively turning the private enterprise into state property. Interference Distorts Markets. If implemented this 100% destroys PayTV in Nigeria.

“This our champagne socialism & zero input style of policymaking is the reason Nigeria is stunted in everything. I invest billions 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.”

He explained that if Tyson Fury and Anthony Joshua are to fight, and it is to be shown in Nigeria, that means the equivalent of 30% of the license costs need to be invested in an equivalent local sport. “Who will pay for that?” he inquired.

Also, Paradigm Initiative said the Code might set back innovation in the country’s digital space.

According the Paradigm Initiative, “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 of economic growth that is relevant in this age.” It said.

Elsewhere, 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.

He 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.

He 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 warned that the code may truncate Mo Abudu’s Netflix deal and many others in the works.

He 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, contended 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 said.

But Prof. Armstrong Idachaba, acting director-general of NBC, said that the Code Amendment is to protect local operators, promote creativity and maximise local contents.

Idachaba, told the News Agency of Nigeria (NAN) in Abuja, that the amendment would benefit the media industry in the country as well as attract foreign investments in the digital space.

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

“The objectives 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.