A Federal High Court in Lagos has denied Access Bank's request to freeze the accounts of MTN Nigeria Communications Plc, marking a significant development in a long-standing financial dispute.
Background of the Lawsuit
The case stems from a fibre-sharing agreement between MTN Nigeria and Multi-Links, which expired in 2024. The agreement granted both parties 'irrefutable rights of use' of each other's fibre infrastructure. However, documents show that Multi-Links underutilized MTN's infrastructure due to financial difficulties, leading to its receivership under Diamond Bank. Negotiations to sell Multi-Links' assets to MTN fell apart.
Court Decision and Its Consequences
Justice Akintayo Aluko ruled that MTN must be given a chance to respond to the freezing request. He stated, 'Given the peculiar nature of the case and the potential implications of the orders sought, especially in light of MTN’s correspondence, the defendant must be heard before any orders are granted.' The case has been adjourned to June 23, 2025.
Financial Status of MTN and Access Bank
MTN Nigeria, a subsidiary of MTN Group, is experiencing significant financial strain, having reported a loss of N400.4 billion in 2024. However, it posted a profit in Q1 2025. Access Bank is also navigating challenges, doubling its IT spending to N518.5 billion in 2024 as part of its digital transformation strategy.
The ongoing legal battle between Access Bank and MTN Nigeria continues to draw attention, as its outcome could have substantial implications for Nigeria's telecom and banking sectors. How the parties resolve their financial disputes remains to be seen, with the next court hearings set for June 23, 2025.
