MTN Nigeria has launched a significant legal offensive to recover ₦6 billion in interconnect charges from SleekChip Technologies. After winning a court case against the international service provider, MTN began garnishee proceedings targeting funds held in more than 20 Nigerian banks.
This aggressive recovery strategy follows a judgment by Justice Peter Lifu of the Federal High Court in Abuja in November 2024, which ordered SleekChip to pay $1.97 million (in Naira equivalent) plus interest for defaulting on interconnect fee payments.
Interconnect Agreement and Breach
In July 2019, MTN and SleekChip signed a network interconnection contract allowing both parties to exchange calls and texts for agreed fees. Between January and October 2022, MTN alleges that SleekChip accumulated a debt of nearly $2 million through usage of MTN’s network.
Despite several demand notices from MTN and a written promise from SleekChip to settle the debt by July 2023, payment never materialized. MTN told the court that SleekChip never disputed the charges, thereby breaching the agreement.
The agreement’s Clause 6.5 required any billing disputes to be raised within 60 days. SleekChip’s failure to respond was interpreted as acceptance of the charges.
Court Issues Judgment in Favor of MTN
Justice Lifu noted that SleekChip failed to defend the suit and granted judgment accordingly. He ordered the company to pay the dollar-denominated debt in Naira, using the prevailing exchange rate on November 7, 2024 (₦1665.84/$1). This translated to ₦3.28 billion in principal.
The judge also directed SleekChip to pay interest calculated from January 2022 at 2% above the Nigerian Interbank Offer Rate, further raising the total liability to over ₦6 billion.
Garnishee Orders Served on Banks
After securing the judgment, MTN approached the court again to enforce it through garnishee orders. The company sought to freeze SleekChip’s bank accounts across over 20 institutions to recover both principal and interest. MTN claimed an additional ₦1.92 billion in interest had accrued by the judgment date.
At a May 16 court session, MTN’s counsel told the court that they had received account disclosures from most of the banks. Consequently, they asked the judge to discharge 10 banks from the proceedings as they held no funds for SleekChip.
Justice Lifu granted the request and released those banks. Others complied with the court’s show-cause order but opposed MTN’s efforts to probe further using BVNs, as the court had not authorized that level of inquiry.
The case has been adjourned to June 26, 2025, for further hearing.
Telecom Sector Faces Widening Debt Challenges
MTN’s legal action comes amid a growing trend of unpaid interconnect charges within Nigeria’s telecom industry. In 2023, the NCC authorized MTN to disconnect SleekChip and other VAS providers for failure to pay. In 2024, MTN also received regulatory approval to sever ties with Exchange Telecommunications Limited over similar issues.
A more public standoff occurred earlier in 2024 between MTN and Globacom. Although a disconnection warning was issued, both companies resolved the matter without disrupting services.
Interconnect Debts Remain a Threat
Telecom interconnect rates ensure fair compensation between operators when calls cross networks. However, rising debt among telecom players threatens sector stability.
MTN’s latest legal move signals a tougher stance on defaulting partners. As the court reconvenes in June, all eyes will be on the outcome and its implications for debt enforcement in Nigeria’s telecom space.
