A Lagos court has put a temporary stop to the Nigerian government’s demand for a N60 billion fine from Facebook.
Justice Yellim Bogoro of the Federal High Court issued an interim injunction to prevent the Advertising Regulatory Council of Nigeria (ARCON) from enforcing the fine.
The fine was imposed on Facebook for allegedly violating advertising regulations.
This legal battle has drawn attention, as it involves one of the world’s biggest tech companies facing a massive penalty in Nigeria.
The ruling followed Facebook’s legal challenge against the fine, which was filed by its counsel, Mofesomo Tayo-Oyetibo (SAN).
In court, Facebook argued that ARCON’s notice was unconstitutional.
Facebook claimed the demand violated principles of fair hearing and was unlawful under the Advertising Regulatory Council of Nigeria Act 2022.
The tech giant also said the fine was an act beyond ARCON’s legal powers, and therefore, illegal.
After considering arguments and reviewing the facts, Justice Bogoro granted Facebook’s request for an interim injunction.
“This order restrains ARCON from enforcing the fine or any related criminal proceedings,” the judge ruled.
Justice Bogoro made it clear that this decision is only temporary, pending further legal proceedings.
The court’s decision blocks ARCON from taking any further action until a full hearing is held.
The case will return to court on February 20, 2025, when the court will examine the full details of Facebook’s challenge.
Facebook has raised serious concerns about the implications of ARCON’s actions.
The company warned that enforcing the fine could lead to unjust legal consequences.
Facebook also argued that ARCON had not responded to its pre-action notice asking for the withdrawal of the threat.
The case began after ARCON accused Facebook of violating Nigerian advertising laws.
As part of the enforcement process, ARCON had issued a Notice of Violation on October 21, 2024.
In response, Facebook filed a motion seeking an interim injunction to block ARCON’s actions.
Facebook’s legal team emphasized that ARCON had threatened to take Facebook and its officials to the Advertising Offences Tribunal.
This tribunal could have initiated criminal proceedings against the company.
But Facebook argued that the Tribunal, controlled by ARCON, was not impartial.
The company pointed out that the Tribunal’s chairman and members are selected by ARCON itself, which could compromise its fairness.
Facebook also stressed that under Nigerian law, criminal proceedings must not be stayed.
The company’s legal counsel argued that if the case goes forward, it would be oppressive and unfair to Facebook.
It also pointed out that ARCON had ignored Facebook’s requests for a resolution, pushing the case forward despite ongoing disputes.
Facebook’s legal team raised concerns about the potential harm to the company’s reputation and operations if the fine were enforced.
They warned that it would set a dangerous precedent for other global companies operating in Nigeria.
The court’s decision to halt the fine is a significant development.
It temporarily shields Facebook from the immediate consequences of the N60 billion demand.
This injunction is a victory for the tech giant, but the battle is far from over.
The court’s ruling shows the ongoing tensions between global companies and Nigerian regulators.
The case highlights the challenges that foreign businesses face in navigating Nigeria’s complex legal environment.
