MTN Sues 20 Banks to Recover N6bn Interconnect Debt from SleekChip Technologies
MTN Nigeria has taken legal action against over 20 banks in an attempt to recover a debt of approximately N6 billion from SleekChip Technologies Limited. The move follows a favorable judgment by Justice Peter Lifu of the Federal High Court in Abuja, which ordered SleekChip to pay MTN $1.97 million (in Naira equivalent) for outstanding interconnect fees. The court also mandated SleekChip to pay interest at a rate 2% above the Nigerian Interbank Offer Rate from January 2022 until the debt is fully settled.
The dispute stems from a 2019 network interconnect agreement between MTN and SleekChip, allowing the exchange of calls and messages between both networks. Between January and October 2022, SleekChip allegedly accrued over $1.9 million in interconnect charges without settling the debt, despite acknowledging the liability and promising to pay by July 2023. MTN provided evidence of multiple demand notices and highlighted SleekChip’s failure to dispute the debt within the contractual timeframe.
Following the court ruling in 2024, MTN initiated garnishee proceedings against various banks to enforce the judgment and recover the sum through funds held in SleekChip’s accounts. The telecom giant seeks to attach both the principal amount and interest, totaling over N3.28 billion, based on the exchange rate at the time of the judgment. Garnishee orders allow a judgment creditor to recover funds from a third party that holds assets on behalf of the debtor.
During a recent court session on May 16, 2025, MTN’s legal team confirmed that several banks submitted affidavits disclosing SleekChip’s account details. The court discharged over 10 banks that did not hold accounts for SleekChip. However, some banks opposed MTN’s request for further account searches using SleekChip’s BVN, arguing that such orders had not been authorized by the court. The matter was adjourned to June 26, 2025, for continued hearing.
This legal battle reflects MTN’s broader efforts to clamp down on unpaid interconnect debts in Nigeria’s telecom sector. In recent years, the Nigerian Communications Commission (NCC) has approved disconnections of operators, including SleekChip and Exchange Telecommunications, due to unsettled charges. A similar standoff between MTN and Globacom was resolved in 2024 after a brief disconnection threat. These actions underscore regulatory and corporate measures to ensure financial compliance in the industry.
Source: Nairametric