Court Upholds FCCPC’s Authority to Investigate MTN Amid Service Outages

MTN Shareholders To Receive Incentive Shares

A Federal High Court in Lagos has affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) statutory authority to regulate competition and consumer protection across all sectors, including telecommunications.

The ruling, delivered by Justice Friday Ogazi, dismissed a lawsuit filed by Emeka Nnubia, an MTN shareholder, who sought to halt the FCCPC’s investigation into the telecom giant over alleged consumer rights violations.

Nnubia had argued that the FCCPC’s probe could breach the Nigeria Data Protection Act and guidelines for disclosure to public authorities. He also contended that the Nigerian Communications Commission (NCC), not the FCCPC, holds exclusive regulatory power over MTN. However, the court ruled that Nnubia failed to demonstrate a reasonable cause of action, noting that the FCCPC had neither targeted him personally nor requested his data.

The court upheld preliminary objections raised by FCCPC’s legal team, led by Abimbola Ojenike and Oluwadamilola Omotosho of Slingstone LP, who argued that Nnubia failed to issue a statutory pre-action notice before filing the suit. The judge emphasized that the FCCPC, under Sections 17 and 18 of the Federal Competition and Consumer Protection Act (FCCPA), is the primary agency tasked with preventing anti-competitive practices and abuse of dominant market positions.

“The FCCPC’s mandate includes ensuring no company unfairly dominates the market, and this oversight is particularly critical in the telecommunications sector, which is central to Nigeria’s economy,” Ojenike stated. The court also clarified that the NCC and FCCPC share concurrent regulatory oversight in the telecom industry, aligning with practices in other jurisdictions.

The ruling comes amid widespread complaints from MTN customers, particularly in Lagos, who experienced severe service disruptions over the weekend. Users reported slow internet speeds, undelivered SMS, and failed calls, sparking outrage on social media. Many Nigerians, who rely on mobile networks for financial transactions, expressed frustration over the prolonged outage.

On social media platform X (formerly Twitter), users vented their grievances. One user, Sir David Onyemaizu, tweeted, “MTN should stop telecommunications and turn their offices into canteens. A rubbish network.” Another user, Anime Queen (@layzeeloli), wrote, “MTN, Airtel, and Glo are lucky they’re the only networks we can afford. I wish a new, reliable network would emerge and put them out of business.”

In response, MTN sent an SMS apology to its subscribers, stating, “Dear customer, we sincerely apologise for the challenges experienced with internet services yesterday in parts of Lagos State. This has been resolved, and services are fully restored. I appreciate your understanding.” However, as of Monday, many customers reported ongoing issues with SMS delivery and slow internet speeds.

MTN, Nigeria’s largest telecom operator with 84 million subscribers as of December 2024, holds a 51.4% market share, according to the NCC. The FCCPC’s investigation into consumer complaints against MTN and other private companies underscores the growing scrutiny of telecom operators amid rising consumer expectations and the sector’s critical role in Nigeria’s digital economy.