In a significant legal development, a Federal High Court in Lagos has denied Access Bank’s request to freeze the bank accounts of MTN Nigeria Communications Plc.
The multinational telecom company was facing an interim injunction tied to an alleged debt of ₦180.95 billion owed to now-defunct Multi-Links Telecommunications. Access Bank had filed suit in April, urging the court to interdict the accounts ahead of a substantive hearing, citing fears that MTN could withdraw or move its funds before any judgment was reached.
Access Bank’s ex parte application argued that it had credible evidence of MTN’s outstanding obligations and that immediate judicial intervention was essential to preserve the funds. The bank also sought to compel other financial institutions to disclose MTN’s account balances under oath.
However, the court was unmoved by these arguments. It ruled that Access Bank had failed to provide compelling evidence demonstrating an urgent need for the freeze, such as showing the funds were in danger of being dissipated.
The presiding judge remanded the decision, mandating MTN Nigeria to appear in court to contest the application. The company was given an expedited deadline to file its counter-affidavit. Initially set for seven days, the court shortened it to five, underscoring the urgency with which it intended to resolve the matter.
MTN’s legal representatives promptly acknowledged the court’s directive and committed to filing their response within the allotted timeframe.
While further details of MTN’s defence remain confidential, the company’s willingness to contest the motion suggests it will vigorously challenge the basis of Access Bank’s assertions.
The case is now scheduled to return to court on June 23, 2025. On that date, MTN will formally respond, explaining why the requested freeze should not be granted. If MTN’s defence is deemed persuasive, the application may be dismissed altogether.
Conversely, should the court find Access Bank’s evidence compelling, it could still order account restrictions, albeit not without providing MTN an opportunity to be heard.
This legal battle between two Nigerian corporate giants comes amid a growing landscape of financial disputes between banks and telecoms. It also sheds light on the court’s caution in imposing drastic interim remedies, particularly those that might disrupt a company’s cash flows and business continuity absent clear, imminent risk.
With the hearing date now set, stakeholders across Nigeria’s telecom and banking industry will be watching closely. The outcome could establish precedent for how similar disputes are handled in the future, balancing creditors’ rights to secure debts with the need to protect essential commercial operations from premature and potentially disruptive legal constraints.
