Court throws out N60bn fine imposed on Facebook

The Federal High Court sitting in Lagos has nullified a N60 billion fine imposed on Facebook Nigeria, stating that the Advertising Regulatory Council of Nigeria, ARCON, acted outside its statutory powers.

The presiding judge, Justice Yellim Bogoro, nullified the fine imposed on the company over alleged unapproved advertisements targeted at the Nigerian market.

Justice Bogoro, in a judgement delivered on June 18, 2026, ruled that ARCON’s notice of violation and demand for compliance dated October 21, 2024, was unconstitutional, unlawful, null and void.

ARCON had accused Facebook Nigeria of exposing advertisements on Facebook and Instagram to the Nigerian market without obtaining prior approval from the advertising standards panel, contrary to the ARCON Act and the Nigerian Code of Advertising.

In the notice, the regulator directed the tech platform to immediately stop displaying unapproved advertisements to Nigerian audiences and demanded payment of N60 billion for what it described as repeated violations.

Aggrieved by the notice, Facebook Nigeria, through its counsel, Mofesomo Tayo-Oyetibo, senior advocate of Nigeria, SAN, challenged the decision, insisting that ARCON had no legal authority to determine criminal liability or impose punitive sanctions through an administrative notice without first affording the company a fair hearing.

Facebook Nigeria also argued that it neither owns nor operates Facebook or Instagram, contending that both platforms are owned and controlled by Meta Platforms Inc., a separate foreign corporate entity.

The counsel to ARCON, Akinlolu Kehinde, argued that Facebook Nigeria represents Meta’s operations in Nigeria and should therefore bear responsibility for regulatory breaches relating to advertisements displayed on the platforms.

ARCON maintained that the notice was merely a regulatory compliance measure and that the tech company could either comply with its directives, pay the prescribed violation fee or face prosecution.

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

The judge ruled that mere assertions that Facebook Nigeria represents Meta’s interests in Nigeria were insufficient to impose liability for the alleged advertising infractions.

He said ARCON violated section 36 of the Constitution by making allegations and simultaneously imposing a substantial financial sanction without first giving the company an opportunity to respond.

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 any penalty.