Telecom
MTN, Lawyer Urge Court to Declare NCC’s $3.9Bn Fine Illegal
MTN Nigeria has urged the Federal High Court, Lagos to quash the $3.9 billion sanction imposed on it by the Nigerian Communications Commission (NCC).
The action came as a lawyer, Abubakar Sani, in a separate suit, also asked a Federal High Court, Abuja to declare the fine unlawful.
NCC had in October sanctioned the company for allegedly failing to disconnect unregistered subscribers.
The initial fine of $5.2 billion was reduced by 25 per cent to $3.9 billion earlier this month, with a December 31 payment deadline.
But MTN, through its lawyers led by a former Nigerian Bar Association (NBA) President Chief Wole Olanipekun (SAN), is challenging NCC’s powers to impose the fine.
Also joined as co-defendant in the suit is the Attorney General of the Federation and Minister of Justice, Abubakar Malami, (SAN).
It argued that NCC, being a regulator, could not assume all the functions of the state.
MTN last week announced that it was going to court to quash the fined imposed on it’s by NCC.
MTN said the commission could not make the regulation, prescribe the penalty and impose the fine payable to it and not to the Federal Government.
The firm alleged that it was not afforded its constitutional right to fair hearing before a court of competent jurisdiction.
Besides, MTN said it had not been found guilty of any offence that would warrant it to pay such a fine.
It contended that the sanction imposed on it by NCC was within 24 hours of its written submission on the disconnection exercise and the impractical nature of the NCC deadline.
According to MTN, the deadline of seven days to disconnect 5.2 million subscribers was grossly inadequate and impracticable.
The telecoms company said the deadline was unfair and ran contrary to the requirement to give adequate notice to the subscribers to update their records.
It accused the regulatory agency of acting as a legislator, executor, accuser, prosecutor, judge and beneficiary of the penalty.
MTN said NCC’s N200,000 per SIM sanction was excessive, being the highest fine ever imposed on a telecommunications company in the world.
The company wondered if the fine is truly commensurate with the purported breach and if it would not frustrate its business in Nigeria.
Attorney-General of the Federation (AGF) Abubakar Malami (SAN) is also a defendant in the action.
MTN urged the court to determine whether having regard to Sections 1 (3), 4 and 6 of the 1999 Constitution (as amended), the regulatory agency can validly enforce Section 70 of the NCC Act in a manner that encroaches on the exclusive legislative powers of the National Assembly, as well as the judicial powers of the courts established under the Constitution.
It said having regard to the express tenor of sections 1 (2), 4 and 6 of the Constitution when read together with Section 70 of the NCC Act, whether the commission’s promulgation of regulations 11, 19 and 20 of its Act (Registration of Telephone Subscribers) Regulations 2011 is not ultra vires its subsidiary rule-making powers.
It also wants the court to determine whether the regulations did not amount to an encroachment on the National Assembly’s legislative powers, as well as the courts’ judicial powers.
Sani, in his suit, among others, argued that it was illegal for NCC to impose a fine of N200,000 per contravention on any of the four mobile telecommunication companies operating in the country for any breach of its regulations.
The suit has as defendants NCC, MTN, Emerging Markets Telecommunications Services Limited (Etisalat Nigeria Limited), Globacom Limited and Airtel Networks Limited.
He urged the court to order NCC to give account of and refund the money it had collected from the four telecommunication companies as fines/penalties in excess of the N100 per contravention for any alleged contravention of the NCC (Regulation of Telephone Subscribers) Regulations 2011.
Sani, in a supporting affidavit, stated that the NCC had on two occasions imposed fines on the four mobile telecommunication companies for contravening some provisions of the Regulations 2011, under which it imposes N200,000 per contravention.
He gave an instance in April 2013 when the telecommunication companies were made to pay a cumulative fine of N53.8 million (MTN, N29.2 million; Etisalat, N5 million; Globacom, N11 million and Airtel, N8.6 million).
He also cited the N1.04 trillion fine NCC imposed on MTN for allegedly refusing to deactivate 5.2 million unregistered/irregularly registered subscribers.
Relying on Section 12(1)(c)(ii) of the Interpretation Act, Sani argued that the NCC Regulations 2011, being a subsidiary legislation, enacted by the NCC pursuant to Section 70(1) of the Nigerian Communications Act 2003, cannot empower NCC to impose fines in excess of N100.
Telecommunications operators have called on the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) to establish a clear regulatory framework for airtime and data credit services, warning that millions of Nigerians could face fresh disruptions if the agencies fail to coordinate their responsibilities.
Gbenga Adebayo, chairman, ALTON
This is coming on the heels of the Federal High Court judgment affirming the FCCPC’s authority to regulate consumer protection in the airtime and data credit market while preserving the NCC’s exclusive mandate over telecommunications licensing and technical regulation.
The ruling effectively clarified that both regulators have complementary roles rather than overlapping powers.
Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the judgment should serve as the basis for stronger collaboration between the two regulators to avoid the regulatory uncertainty that earlier forced operators to suspend airtime and data credit services.
Gbenga Adebayo, chairman, ALTON, said the industry was not disputing the authority of either regulator but was seeking a clearly defined operational framework before any further regulatory actions are taken.
“The court has done something important. It has confirmed the FCCPC’s authority and, in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires,” Adebayo said.
He stressed that regulatory certainty had become critical because millions of Nigerians depend on airtime and data credit services for daily communication.
“Forty million Nigerians depend on these services. The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again,” he stated.
Adebayo also urged both agencies to engage industry stakeholders before introducing measures capable of affecting consumer access to the services.
According to him, the Presidential Enabling Business Environment Council (PEBEC) directive requiring Regulatory Impact Assessments before major policy changes should be observed to minimise unintended consequences on businesses and consumers.
The renewed call comes months after major mobile network operators temporarily suspended airtime and data borrowing services following the implementation of the FCCPC’s Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations, a development that affected millions of subscribers nationwide.
In its judgment, the Federal High Court held that while the FCCPC has powers over competition and consumer protection issues in the digital lending ecosystem, it cannot assume the NCC’s statutory responsibility for licensing telecommunications operators.
Justice Ambrose Lewis-Allagoa ruled that the two agencies must operate within their respective mandates, describing their relationship as one of “coexistence, not displacement.”
MTN Nigeria has warned customers to disregard fraudulent online posts claiming the telecom operator is offering “1 Month Free Data for Old Subscribers,” describing the promotion as fake and unauthorised.
In a statement shared on its X handle, the telco said the circulating promotion is not from MTN and is not affiliated with the company.
MTN urged customers not to click on the accompanying link in the online post or provide their phone numbers or personal information on any third-party website.
Customers are advised not to click on the link or provide their phone numbers or personal information on any third-party website.
“We will never require customers to submit their details on external platforms to claim data or any other reward,” MTN said.
The company added that all genuine promotions, products and services are announced only through its official communication channels.
“All authentic MTN promotions, products and services are communicated exclusively through our official channels, including www.mtn.ng, our verified social media pages and *180#,” the company said.
MTN also urged customers to remain vigilant against online scams designed to steal personal information, warning that fraudulent offers often impersonate trusted brands to deceive unsuspecting users.
“Don’t be the next victim!” the company said, reiterating that the purported “1 Month Free Data for Old Subscribers” offer is fake and not associated with MTN Nigeria.
National Industrial Court of Nigeria (NICN), sitting in Ikoyi, Lagos, has dismissed a Notice of Preliminary Objection filed by Pan African Towers Ltd. (PAT) in an employment dispute instituted by its former Managing Director and Chief Executive Officer, Mr. Azeez Amida.
The court also awarded ₦500,000 in costs against the company after holding that the application lacked merit.
Justice Essien, who delivered the ruling on July 21 in Suit No. NICN/LA/143/2025: Mr. Azeez Amida v. Pan African Towers Limited, held that the substantive case concerning Amida’s alleged outstanding contractual entitlements under a Mutual Separation Agreement should proceed to hearing.
The ruling effectively rejected the company’s attempt to terminate the proceedings on jurisdictional grounds.
Jurisdictional Challenge Rejected
Pan African Towers had argued that the National Industrial Court lacked jurisdiction to entertain the matter because the Mutual Separation Agreement executed between the parties required disputes to first pass through negotiation, mediation and arbitration before litigation could be initiated.
The company maintained that Mr. Amida failed to exhaust those contractual dispute resolution mechanisms before approaching the court.
However, Justice Essien rejected the argument after examining evidence presented by the claimant showing that several attempts had been made to activate the agreed dispute resolution process before legal proceedings commenced.
According to the court, documentary evidence showed that Mr. Amida, through his solicitors, issued correspondence and formal demand letters aimed at resolving the dispute amicably in line with the terms of the agreement.
The court found that rather than engaging with those efforts, Pan African Towers failed to meaningfully participate in the process and later sought to rely on the same contractual provisions to challenge the court’s jurisdiction.
Evidence Considered by the Court
According to evidence presented by Mr. Amida’s legal team, the court considered correspondence involving senior officials of Pan African Towers and its investors.
Among the documents relied upon was a letter allegedly written by the Chairman of the Board of Pan African Towers and Partner at Development Partners International (DPI), Mr. Adefolarin Ogunsanya, rejecting the demand made by Mr. Amida’s legal representatives for an amicable resolution before litigation.
The claimant’s legal team also tendered multiple email communications allegedly sent from January 2025 to Verod Capital Management’s in-house legal counsel, Mr. Dipo Okuribido.
According to the claimant, those emails did not receive any response before the commencement of the suit.
Based on the evidence before it, the court held that the conduct of Pan African Towers was inconsistent with reliance on the contractual dispute resolution provisions.
Justice Essien ruled that the company had effectively waived its right to insist on arbitration after frustrating the preliminary dispute resolution process contemplated by the parties’ agreement.
The court consequently held that Pan African Towers could not rely on the arbitration clause to prevent the court from hearing the substantive claims.
Court Awards Costs
Having dismissed the Preliminary Objection, the National Industrial Court awarded costs of ₦500,000 against Pan African Towers.
The court described the objection as lacking merit.
Substantive Defence Yet to Be Filed
The ruling represents the first judicial determination in the employment dispute.
The claimant’s legal team noted that since the suit commenced, the principal response filed by Pan African Towers had been the Preliminary Objection challenging the jurisdiction of the National Industrial Court.
According to the claimant, the company has yet to file a substantive defence addressing the merits of the claims relating to the alleged outstanding contractual entitlements.
With the dismissal of the jurisdictional challenge, the matter will now proceed to hearing on its merits.
The court adjourned the substantive suit until Jan. 12, 2027.
Background to the Dispute
The dispute arose following Mr. Amida’s departure from Pan African Towers after both parties executed a Mutual Separation Agreement.
According to the claimant, while the agreement governed the terms of his exit from the company, certain contractual entitlements remained unpaid.
His legal representatives said they initially sought to resolve the dispute through the mechanisms provided under the agreement by engaging the company through correspondence and formal demand letters.
When those efforts failed to produce a resolution, they commenced proceedings before the National Industrial Court seeking payment of the outstanding contractual entitlements.
Rather than filing a substantive defence to the claims, Pan African Towers challenged the jurisdiction of the court, arguing that arbitration and other dispute resolution mechanisms had not been exhausted.
The National Industrial Court has now rejected that position.
Related Commercial Litigation
The employment proceedings are separate from ongoing commercial cases before the Federal High Court involving Mr. Amida, Development Partners International (DPI), Verod Capital Management and other parties.
Those proceedings relate to issues concerning the ownership of Pan African Towers and remain pending before the courts.
The National Industrial Court noted that those matters would be determined independently based on their respective facts, evidence and applicable legal principles.
Legal Team Reacts
Reacting to the ruling, representatives of Mr. Amida’s legal team welcomed the decision.
“The Court has affirmed an important principle of contractual dispute resolution.
“A party cannot frustrate the agreed process and later seek to rely on that same process to prevent a claim from being heard.
“We now look forward to presenting the substantive case before the Court,” the legal team said.
The lawyers acknowledged that Pan African Towers retained the right under Nigerian law to pursue any available appellate remedies but stated that they were fully prepared for the substantive hearing scheduled for January 2027.
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