MTN Drags 20 Banks to Court to Recover ₦6 Billion from SleekChip Technologies

Telecom company, MTN Nigeria, has taken over 20 banks to court in a bid to recover about ₦6 billion from SleekChip Technologies Limited, a telecom operator. This action follows a judgment from the Federal High Court in Abuja in Nov 2024, which ruled in favour of MTN.

The money in question is for “interconnect debt”, which is what telecom operators pay each other when calls or text messages go through their networks.

According to court papers, MTN and SleekChip entered into a contract on 23rd July 2019 that allowed both parties to carry voice and message traffic across each other’s networks. MTN said that “between January and October 2022, the defendant accumulated a debt of $1,971,409.85”, which SleekChip failed to pay despite several reminders.

In a letter dated 30th May 2023, SleekChip admitted to owing the money and promised to pay on or before 20th July 2023. But MTN told the court that “the defendant has since failed, refused, and neglected to liquidate its indebtedness to the applicant without justification.”

The telecom giant also told the court that;

“the defendant has never disputed the debt but admitted its indebtedness to the applicant.”

MTN pointed out that based on the agreement both parties signed, SleekChip had 60 days from the date of invoice to raise any complaints. But the company never did. As MTN explained in court, “By virtue of clause 6.5 of the agreement, the defendant had sixty (60) days to challenge the invoices but failed to do so.”

Justice Peter Lifu of the Federal High Court delivered his ruling in November 2024, stating that

SleekChip “filed no defence on the merits” and that the court was satisfied with MTN’s claims.

The judge ordered SleekChip to pay; “the sum of $1,971,409.85 in its Naira equivalent at the prevailing Central Bank rate at the time”, along with interest at “2% above the Nigerian Interbank Offer Rate (NIBOR)”, from 31st January 2022 until full payment is made.

MTN calculated that the principal sum of $1.97 million at the exchange rate of ₦1,665.84/$1, converted to about ₦3.28 billion, and with interest, the total amount owed had reached ₦6 billion by 7th November 2024.

To recover the funds, MTN began a garnishee proceeding—a legal action where a creditor asks the court to freeze the debtor’s money in banks.

MTN asked the court to issue a “Garnishee Order Nisi” to attach “the sum of ₦1,926,786,156.47, being interest on the principal judgment sum”, plus the principal, totaling over ₦6 billion.

At the court sitting on 16th May 2025, MTN’s lawyers and representatives from most of the affected banks were in court. MTN told the judge that it had received “affidavits to show cause from virtually all the banks”, showing whether or not SleekChip had funds in their custody.

MTN asked the court to remove over 10 banks from the case, saying “the judgment debtor has no account opening package with them”, and the court agreed, discharging those banks.

However, there was a disagreement when MTN’s lawyers asked the court for permission to search for other bank accounts linked to SleekChip’s BVN (Bank Verification Number). The banks pushed back, arguing that “the court never made such orders”, and said MTN had no legal right to carry out that search without a direct order from the court.

The judge has adjourned the matter to 26th June 2025 for further hearing.

This case highlights a common issue in Nigeria’s telecom sector—unpaid interconnect charges. In 2023, the Nigerian Communications Commission (NCC) gave MTN permission to disconnect some operators, including SleekChip and Exchange Telecommunications, for failing to settle their debts. In 2024, MTN also got approval to disconnect Globacom, but both companies later reached a payment agreement.

By going through the courts, MTN is showing that it is now taking stronger legal action to recover what it is owed, rather than relying only on regulators. If successful, this case could set a major example for how telecom debts are recovered in Nigeria.

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