Federal High Court Voids ARCON’s N60 Billion Fine Against Facebook Nigeria

Federal High Court Voids ARCON’s N60 Billion Fine Against Facebook Nigeria

The Federal High Court in Lagos has delivered a landmark judgment by nullifying the N60 billion sanction imposed on Facebook Nigeria Operations Limited by Nigeria's Advertising Regulatory Council (ARCON), ruling that the regulator acted beyond its legal powers.

In a judgment delivered on June 18, 2026, Justice Yellim Bogoro held that ARCON violated Facebook Nigeria's constitutional right to a fair hearing before issuing the massive penalty. The court declared the regulator's Notice of Violation/Demand for Compliance, dated October 21, 2024, unconstitutional, unlawful, null, and void.

Court Rules ARCON Exceeded Its Legal Authority

Justice Bogoro ruled that ARCON does not have the statutory power to impose financial penalties for alleged criminal violations under the Advertising Regulatory Council of Nigeria (ARCON) Act, 2022 without first securing a conviction from a court or other competent tribunal.

The court further issued a perpetual injunction, preventing ARCON, its officers, agents, and representatives from taking any further steps to enforce the N60 billion sanction against Facebook Nigeria.

How the Dispute Began

The controversy began after ARCON accused Facebook Nigeria of displaying advertisements on Facebook and Instagram to Nigerian users without obtaining prior approval from the Advertising Standards Panel, allegedly violating provisions of the ARCON Act and the Nigerian Code of Advertising.

The regulator ordered the company to immediately stop displaying the advertisements and demanded payment of a N60 billion penalty, describing the alleged conduct as repeated breaches of advertising regulations.

Facebook Nigeria Challenges the Fine

Facebook Nigeria, represented by senior lawyer Mofesomo Tayo-Oyetibo (SAN), challenged the sanction in court, arguing that ARCON had no legal authority 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, insisting that both platforms are owned and controlled by Meta Platforms Inc., a separate foreign corporate entity.

ARCON's Argument Rejected

ARCON, through its counsel Akinlolu Kehinde (SAN), argued that Facebook Nigeria represents Meta's operations within Nigeria and should therefore be held responsible for regulatory breaches linked to advertisements displayed on the platforms.

The regulator also claimed that the notice was merely a compliance directive, offering the company the option to comply, pay the prescribed violation fee, or face prosecution.

However, Justice Bogoro dismissed those arguments, ruling that ARCON failed to provide sufficient evidence proving that Facebook Nigeria owns, controls, or operates Facebook or Instagram.

The judge emphasized that merely representing Meta's interests in Nigeria does not automatically make Facebook Nigeria legally liable for alleged advertising violations committed on the platforms.

Court Finds Violation of Fair Hearing

The court held that ARCON breached Section 36 of the Nigerian Constitution, which guarantees the right to a fair hearing, by accusing Facebook Nigeria of wrongdoing while simultaneously imposing a massive financial penalty without first allowing the company to respond.

Justice Bogoro also pointed to Section 57(4) of the ARCON Act, which expressly requires the regulator to provide any alleged violator with a fair hearing before imposing sanctions.

Criminal Penalties Require Court Conviction

The judgment further stated that the alleged violations relied upon by ARCON are criminal offences under Section 34 of the ARCON Act.

According to the court, the Act clearly provides that punishment can only follow after a valid conviction, meaning ARCON cannot impose criminal fines through an administrative process.

Justice Bogoro stressed that regardless of how ARCON described the N60 billion demand, it was effectively a criminal fine that only a court of competent jurisdiction has the authority to impose after proper judicial proceedings.

Final Verdict

The Federal High Court declared ARCON's October 21, 2024 Notice of Violation unlawful and issued outside its statutory powers.

The court also affirmed that ARCON cannot impose fines for alleged violations of Sections 34(3), 54, or any other criminal provisions of the ARCON Act without a prior court conviction.

With the ruling, the N60 billion sanction has been completely set aside, marking a significant legal victory for Facebook Nigeria and reinforcing the constitutional principles of due process, fair hearing, and judicial oversight in Nigeria's regulatory system.