Court Dashes Access Bank’s Hope Over N180bn Claims Against MTN

Court Dashes Access Bank’s Hope Over N180bn Claims Against MTN

A Federal High Court in Lagos has declined Access Bank Plc’s request to freeze the bank accounts of MTN Nigeria Communications Plc over a disputed N180.95 billion debt claim linked to a long-expired infrastructure-sharing deal with now-defunct Multi-Links Telecommunications.

Justice Akintayo Aluko, ruling on an ex parte application filed by Access Bank and three companies in receivership, Multi-Links Telecommunications Limited, Capcom Telecoms Limited, and Cyancom Limited, refused to issue an interim order freezing MTN’s funds.

The judge held that MTN must first be given an opportunity to be heard before any such drastic action is taken.

Access Bank, through its counsel Mr. Kunle Ogunba (SAN), had requested an interim injunction restraining MTN from withdrawing or tampering with funds across all its accounts in Nigeria up to the amount of N180.95 billion.

The bank claimed this figure represents a long-standing debt owed by MTN to Multi-Links.

As part of the orders sought, the applicants also requested that all financial institutions in Nigeria be directed to disclose, under oath, the balances in MTN’s accounts within seven days.

The suit, marked FHC/L/CS/1004/2025, essentially sought to lock down MTN’s funds pending the determination of the main suit.

However, Justice Aluko ruled that, while the plaintiffs presented a seemingly compelling case, MTN must be allowed to respond.

“Due to the peculiar nature of the case and the potential implications of the orders sought, especially in light of MTN’s correspondence marked ‘MTN 17,’ the defendant must be heard before any orders are granted,” the judge said, according to ThisDay Newspaper.

The court ordered MTN to appear and show cause within five days, with the case adjourned to June 23, 2025, for further proceedings.

At the heart of the dispute is a fibre-sharing agreement between MTN and Multi-Links dating back over a decade, sources say.

The deal gave both parties “irrefutable rights of use” of each other’s fibre infrastructure for 10 years, expiring in 2024.

However, due to financial and operational setbacks, Multi-Links reportedly underutilised MTN’s infrastructure while MTN made significant use of Multi-Links’ network.

As Multi-Links spiralled into financial distress, the company went into receivership under the control of Diamond Bank. Before it folded, Multi-Links attempted to sell its fibre assets to MTN, but negotiations collapsed over pricing disagreements.

Years later, a company named Hoop Telecoms emerged, claiming to have acquired Multi-Links’ fibre infrastructure. However, Hoop reportedly disclaimed any responsibility for Multi-Links’ past liabilities. Despite this, the company billed MTN nearly N170 billion, retroactively charging for years prior to its supposed acquisition of the assets.

MTN flatly rejected the demand, estimating its actual obligation under the original agreement at just over N1 billion. The telecoms firm also took the matter to the Nigerian Communications Commission (NCC), which reportedly found that Hoop Telecoms lacked a valid telecom licence and thus had no legal standing to make such claims.

The situation grew more complex after Access Bank acquired Diamond Bank in 2019, thereby assuming control of Multi-Links’ receivership. According to sources familiar with the case, Access Bank aligned itself with Hoop Telecoms’ claims and pushed for a legal settlement, which MTN resisted.