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Court Voids ARCON’s ₦60bn Fine Against Facebook Nigeria, Cites Abuse of Regulatory Powers

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The Federal High Court in Lagos has nullified the ₦60 billion fine imposed on Facebook Nigeria by the Advertising Regulatory Council of Nigeria (ARCON), ruling that the regulator exceeded its legal authority and violated the company’s constitutional right to a fair hearing.

Delivering judgment on June 18, 2026, Justice Yellim Bogoro declared ARCON’s Notice of Violation and Demand for Compliance, dated October 21, 2024, unconstitutional, unlawful, null, and void.

The dispute stemmed from ARCON’s allegation that Facebook Nigeria displayed advertisements on Facebook and Instagram to Nigerian users without obtaining prior approval from the Advertising Standards Panel, contrary to the provisions of the ARCON Act and the Nigerian Code of Advertising. The regulator subsequently ordered the company to stop displaying the advertisements and imposed a ₦60 billion penalty for what it described as repeated violations.

Challenging the decision, Facebook Nigeria, through its counsel, Mofesomo Tayo-Oyetibo (SAN), argued that ARCON lacked the statutory powers to determine criminal liability or impose punitive sanctions through an administrative notice without first giving the company an opportunity to defend itself.

The company also maintained that it neither owns nor operates Facebook or Instagram, explaining that both platforms are owned and controlled by Meta Platforms Inc., a separate foreign corporate entity.

In response, ARCON, represented by Akinlolu Kehinde, contended that Facebook Nigeria serves as Meta’s representative in Nigeria and should therefore be held accountable for regulatory breaches relating to advertisements displayed on the platforms. The regulator further argued that its notice was a compliance directive, giving the company the option to comply, pay the prescribed violation fee, or face prosecution.

However, Justice Bogoro held that Facebook Nigeria is a distinct legal entity from Meta Platforms Inc. and ruled that ARCON failed to provide sufficient evidence proving that the Nigerian company owns, operates, or controls Facebook or Instagram.

The court also found that ARCON violated Section 36 of the 1999 Constitution by alleging wrongdoing and imposing a substantial financial penalty without first giving Facebook Nigeria the opportunity to be heard.

Justice Bogoro further held that Section 57(4) of the ARCON Act expressly requires the regulator to accord any alleged violator a fair hearing before imposing sanctions.

The judgment effectively sets aside ARCON’s ₦60 billion penalty against Facebook Nigeria.

Mike Ojo

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