Fidelity Bank Plc has announced the completion of the acquisition of a 100% stake in Union Bank Plc UK, according to a press release it sent to the Nigeria Exchange Limited (NGX).

The deal follows the bank’s outstanding performance in 2022, which saw its earning assets grow significantly to N2.64 trillion.

Fidelity Bank said that the acquisition is aimed at strengthening its “strategic initiatives on international expansion.”

“Further to the press release dated August 2, 2022, wherein Fidelity Bank Plc (the Bank) notified the General Public of its proposed 100% acquisition of Union Bank UK PIC (UBUK), the Bank is pleased to announce the completion of the transaction and receipt of the approval of the Bank of England’s Prudential Regulatory Authority (PRA) for change of control of UBUK.

“The acquisition of UBUK is in furtherance of Fidelity Bank Plc’s strategic initiatives on international expansion. The Central Bank of Nigeria had earlier issued a letter of “No Objection” to the transaction.

“The Board of Directors of the Bank is confident that acquisition will unlock significant value for the Fidelity Bank Group and is taking action to ensure the seamless integration of the operations of both entities,” the bank said in the press statement.

Revealing its plans, Fidelity Bank CEO Mrs Nneka Onyeali-Ikpe told Bloomberg that following the completion of the acquisition of Union Bank UK, the bank would expand into 5 African countries via acquisition.

“The strategy is for us to move our footprint outside Nigeria and be able to compete favourably with our peers. In the next three years, we should be able to be in six countries by doing at least two every year,” she said.

The acquisition deal was initiated in August 2022, when Fidelity Bank Plc entered into a binding agreement to acquire a 100% equity stake in Union Bank UK Plc.

The acquisition required approval from the Prudential Regulatory Authority of the United Kingdom. Fidelity Bank stated that this move aligns with its strategy of expanding beyond the Nigerian market, allowing it to better serve its growing client base.

This follows the step of Access Bank Plc, which earlier this year, entered into agreements for the acquisition of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its consumer, private and business banking business in Tanzania.

As an intellectual property lawyer, by default, the first thing that I thought of immediately after I learnt of the death of Mr. Ilerioluwa Oladimeji Aloba Aka Mohbad is who will now own and control the royalties and the revenues generated from the music of the late singer and who will now earn the royalties from every other of his intellectual properties. 

According to records available, the singer before his death released two albums and quite a number of singles, most of which were global hits and have generated a lot of revenues and will continue to generate a lot of revenue from streamings and licensing even after his death. 

The first album was released whilst he was signed to Marlian Music. So legally speaking, the royalties and revenues generated by that first album and every other single track he released while he was signed to that label will be owned by the label unless there was a contract stating otherwise. In fact, if you read or check ownership of the album on music streaming platforms, it is clearly written that the singer’s previous record label owns the album. This is mostly the case when an artiste is signed to a record label, every song or album the artiste released whilst under the management of that label becomes the property of the label unless there is a contract stating otherwise. 

The subsequent album and other singles he released after he broke out from Marlian Music and formed his own record label, “Imolenization” will be owned solely by him. 

Why is this legal analysis important!

It is important because according to research, in the first month after the death of an artiste, the songs of the artiste peak and generate high numbers of revenues through streaming. In fact, as I type this, 3 of the late singer’s songs just ranked in the top 10 music on streaming platforms in Nigeria barely 24 hours after his death.  

It is even on record that some artists make more money from their songs after they have died than when they were alive. Music and other intellectual properties of an artiste or an entertainer are immortal, it does not die with the creator, so it outlives the creators and will keep generating money decades or even centuries after the death of its creator. The late singer’s songs will keep generating money as much as it is good music. So determining who will control that revenue after the death of the artiste is quite important at this point. 

For instance, the legendary Fela who died some decades ago, his songs still generate millions of naira annually from streaming, synching and licensing. The royalties generated from Fela’s music were initially administered as part of Fela’s estate until the rights to his songs were acquired. 

It is heartbreaking that some artiste after their death the family members they left behind become destitute and wretched because they are ignorant of the fact that they could live comfortably by feeding from the legacy that was left behind. The mother of the late Dagrin complained some months ago that the family of Dagrin has never gotten a dime from the royalties and revenues that Dagrin’s music generated after his death. She disclosed that she has been struggling to feed since her son, Dagrin who was the breadwinner died. This got some of us worried because if you have an idea of how the music earnings and revenues work you will know that someone somewhere is feeding on their ignorance and definitely chopping the money generated from Dagrin’s music without the Knowledge of Dagrin’s family.

I wish Mohbad peace and I send my condolences to the family members. I advise that they should quickly secure the legacy, royalties and streaming earnings from Mohbad’s music. 

They will need to consult a lawyer or a music consultant.