A major legal dispute is set to unfold in the coming weeks over the ownership and control of Emerging Markets Telecommunication Service (EMTS), the company that operates the popular 9mobile telecommunications network in Nigeria. The Federal High Court in Abuja has set March 19, 2025, as the date for hearing the case, which could have far-reaching consequences for one of Nigeria’s biggest mobile network providers.
Abubakar Isa Funtua, the plaintiff, has filed a lawsuit against General Theophilus Yakubu Danjuma (Rtd) and his company, LH Telecommunication Limited, alongside other defendants. The case revolves around claims of illegal share transfers and disputes regarding the rightful ownership of EMTS, which operates under the name 9mobile. The case is of significant interest, not only for the parties involved but also for Nigeria’s telecommunications industry, as it could affect the future of one of the country’s major mobile networks.
The primary defendant in this case is General Theophilus Yakubu Danjuma, a former Nigerian military leader and prominent businessman. Danjuma’s company, LH Telecommunication Limited, is alleged to be involved in the controversial acquisition of shares in EMTS. The other key players include Seltrix Limited, a company sued as the 1st Defendant; the Corporate Affairs Commission (CAC); the Nigerian Communications Commission (NCC); and several individuals linked to the Teleology Nigeria Limited group, including Hayatu Hassan Hadeija and Mohammed Edewor, a director in Teleology Nigeria Limited.
In the Statement of Claim filed by Funtua, he asserts that he is the true and beneficial owner of 43 million shares in Teleology Nigeria Limited, which are being held in trust for him by Seltrix Limited. Funtua’s legal team is seeking multiple declarations from the court, including the assertion that certain actions taken by the defendants regarding the transfer of shares are unlawful and should be reversed.
Funtua’s legal claim is centred around the alleged improper transfer of shares in Teleology Nigeria Limited, a company that plays a significant role in the ownership and management of EMTS, the operator of 9mobile. According to the plaintiff, Seltrix Limited, which is supposed to act as a trustee for the 43 million shares, transferred or surrendered these shares in breach of its duties. Funtua claims that this transfer violated the terms outlined in the Memorandum and Articles of Association of Seltrix Limited.
In his lawsuit, Funtua seeks a declaration that these share transfers are null and void. He argues that the transfer of shares to Teleology Nigeria Limited was done unlawfully, and that the subsequent registration of these changes by the Corporate Affairs Commission (CAC) was in violation of the Companies and Allied Matters Act, 2020. Funtua wants the court to set aside the registration of the increased share capital of EMTS, which was reportedly carried out in contravention of the law.
One of the core issues at the heart of the case is the controversial increase in the share capital of EMTS, which Funtua claims was improperly handled. The plaintiff alleges that the corporate registration of an additional 1.91 billion ordinary shares of EMTS was conducted without proper legal processes. Funtua’s legal team contends that this was a breach of Section 127 of the Companies and Allied Matters Act, which governs company operations in Nigeria.
Funtua has further asked the court to declare the entire process of increasing EMTS’s share capital and allotting the new shares as unlawful and without legal effect. This challenge to the corporate restructuring could potentially disrupt the ownership structure of 9mobile, which is a significant player in Nigeria’s competitive telecommunications market.
9mobile, previously known as Etisalat Nigeria, is one of Nigeria’s largest telecommunications providers, with millions of subscribers across the country. The ongoing legal battle over the ownership of EMTS could have a direct impact on the future operations and stability of the company. The dispute has already drawn attention from industry analysts, as it raises concerns about the company’s management and whether it could face any operational disruptions if the ownership issue is not resolved in a timely manner.
9mobile’s parent company, EMTS, has faced financial challenges in the past, including a debt crisis that led to a major restructuring. In 2017, the company rebranded from Etisalat to 9mobile after a takeover by a consortium of local investors. Despite these challenges, 9mobile has managed to maintain a significant presence in the Nigerian telecom market, competing with other giants like MTN Nigeria, Airtel Nigeria, and Glo.
In addition to seeking the reversal of the contested share transfers, Funtua is also asking the court to award him N100 billion in general damages. This hefty sum represents compensation for the alleged harm caused by the actions of the defendants, including the unlawful registration of share transfers and the breach of trust regarding the 43 million shares.
The case will be heard by the Federal High Court in Abuja on March 19, 2025.
