Audu Maikori, CEO and founder of Chocolate City, has been granted bail by a Kaduna magistrate court.
Maikori was on Monday arraigned over alleged criminal conspiracy and spreading falsehood.
The music executive and one Simon Joseph were accused of inciting disturbance of public peace through the circulation of fake reports.
Emmanuel Yusuf, chief magistrate, however said his court does not have the jurisdiction to hear the case.
Consequently, he granted the accused persons bail in the sum of N100, 000 and one surety each.
He adjourned the case to Thursday April 20 for further mention.
The lawyer and businessman was on Friday arrested in Lagos and subsequently taken to Kaduna state.
He was first arrested three weeks ago on February 18 over a social media post where he stated that five students of Kaduna State College of Education were killed by Fulani herdsmen during the Southern Kaduna crisis.
Despite withdrawing the claims and apologising, the police said his post exacerbated the Southern Kaduna crisis.