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Court Orders SleekChip to Pay $1.97 Million Plus Interest as MTN Moves to Recover Funds from Commercial Banks
In a bold legal action to recover unpaid interconnect fees, MTN Nigeria has initiated a lawsuit against more than 20 commercial banks in connection with a ₦6 billion interconnect debt owed by SleekChip Technologies Limited. SleekChip, a licensed international Direct Access and National Transit service provider, has allegedly defaulted on a court-acknowledged payment obligation to MTN.
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Federal High Court Rules in Favour of MTN
The legal proceedings follow a landmark Federal High Court judgment delivered in November 2024 by Justice Peter Lifu, who ordered SleekChip to pay $1,971,409.85 (approximately ₦3.28 billion at the exchange rate of ₦1665.84/$1) to MTN Nigeria, alongside accrued interest. The court’s ruling emphasized SleekChip’s failure to file a substantial defense or fulfill payment obligations previously acknowledged in writing.
Background: Interconnect Agreement Between MTN and SleekChip
MTN and SleekChip entered into a formal network interconnection agreement on July 23, 2019, enabling the exchange of voice and SMS traffic for a fee. SleekChip later admitted to owing MTN and, in a letter dated May 2023, promised to settle the outstanding debt by July 20, 2023. However, MTN asserts that no payment has been received to date.
Court Imposes Interest Until Full Repayment
Justice Lifu’s ruling further stipulated that the debt would accrue interest at 2% above the Nigerian Interbank Offer Rate (NIBOR) from January 31, 2022, until full repayment is made. This significantly increases the total financial obligation, making full settlement imperative.
MTN Seeks to Recover Funds via Commercial Banks
At a recent court hearing held on May 16, 2025, MTN’s legal representatives confirmed that almost all of the 20+ banks involved had submitted affidavits to show cause—legal statements clarifying whether they currently hold or have held funds linked to SleekChip Technologies. These filings could determine how and from where MTN may legally recover the owed funds.
What’s Next in the Case?
As the case proceeds, the focus will be on identifying accessible assets held by SleekChip in the banking system. MTN’s legal team aims to enforce the debt recovery order using court-approved garnishee proceedings, a process that allows creditors to seize funds directly from third-party institutions holding the debtor’s money
