MTN Nigeria Communications Plc has commenced garnishee proceedings against over twenty commercial banks in a strategic move to recover an interconnect debt of approximately N6 billion owed by SleekChip Technologies Limited, an international Direct Access and National Transit service provider.
This follows a judgment delivered in November 2024 by Justice Peter Lifu of the Federal High Court, Abuja, ordering SleekChip to pay MTN the sum of $1,971,409.85—or its naira equivalent at the prevailing Central Bank rate—plus accrued interest.
According to documents , the court directed SleekChip to pay interest on the judgment sum at a rate of 2% above the Nigerian Interbank Offer Rate, effective from January 31, 2022, until full liquidation of the debt.
The legal dispute stems from an interconnect agreement signed between MTN and SleekChip on July 23, 2019. Under the terms of the agreement, both parties were to exchange calls and messages for a fee—known as interconnect charges—in line with the Nigerian Communications Act.
Between January and October 2022, MTN claims that SleekChip accrued a debt of over $1.9 million, and despite multiple demand notices sent between February and October 2022, the company failed to pay.
In a letter dated May 30, 2023, SleekChip acknowledged the debt and offered to settle the amount by July 20, 2023—a promise that was never fulfilled. MTN further told the court that SleekChip never formally disputed the debt, despite having 60 days under clause 6.5 of the agreement to do so.
Justice Lifu, in his ruling, noted that SleekChip failed to file any defense and, satisfied with MTN’s evidence and service of court processes, awarded judgment in favor of the telecom company.
Following the judgment, MTN filed a garnishee application in Suit No: FHC/ABJ/CS/1264/2023, seeking to attach the total judgment sum of N3,284,055,355.93—being the naira equivalent of the debt at a CBN exchange rate of N1665.8410/$1 on November 7, 2024.
The company also sought to attach an additional N1.9 billion in interest through a Garnishee Order Nisi.
At the hearing held on May 16, 2025, MTN’s legal team informed the court that they had received affidavits to show cause from “virtually all the banks,” outlining funds held for SleekChip. The team then requested that over ten banks be discharged from the proceedings, having confirmed that SleekChip held no accounts with them. Justice Lifu granted the request and discharged the said banks.
However, controversy arose when several banks challenged MTN’s attempt to probe SleekChip’s other accounts via BVN-linked information, stating that the court had not granted such an order.
The case has been adjourned to June 26, 2025, for further hearing.
In 2023, the Nigerian Communications Commission (NCC) gave MTN approval to disconnect several Value Added Service (VAS) operators, including SleekChip, over unpaid interconnect charges.
By early 2024, NCC also approved the disconnection of Exchange Telecommunications Limited, another debtor.
In a related high-profile dispute earlier in 2024, NCC approved the partial disconnection of Globacom by MTN over interconnect debt. However, following a ten-day warning period, the parties reached a resolution, and disconnection was averted.