The Federal High Court in Lagos has nullified the N60 billion sanction imposed on Facebook Nigeria Operations Limited by the Advertising Regulatory Council of Nigeria (ARCON), ruling that the regulator exceeded its powers under the law and violated the company’s constitutional right to a fair hearing.
In a judgment delivered on June 18, 2026, Justice Yellim Bogoro declared ARCON’s Notice of Violation and Demand for Compliance, dated October 21, 2024, unconstitutional, unlawful, and unenforceable.
The court also issued a perpetual injunction restraining the regulator, its officers, agents, and representatives from taking any further steps to enforce the sanction.
The dispute arose after ARCON alleged that advertisements displayed on Facebook and Instagram were targeted at Nigerian audiences without obtaining prior approval from the Advertising Standards Panel, contrary to the provisions of the Advertising Regulatory Council of Nigeria Act, 2022.
Based on the alleged breaches, the regulator directed Facebook Nigeria to discontinue the advertisements and imposed a N60 billion penalty.
Facebook Nigeria, through its counsel, Mofesomo Tayo-Oyetibo (SAN), challenged the decision, arguing that ARCON lacked the statutory authority to determine criminal liability or impose punitive sanctions through an administrative process.
The company also maintained that it neither owns nor operates Facebook or Instagram, explaining that both platforms are owned and managed by Meta Platforms Inc., a separate foreign corporate entity.
In response, ARCON, represented by Akinlolu Kehinde (SAN), argued that Facebook Nigeria serves as Meta’s representative in the country and should therefore be held responsible for regulatory breaches connected to advertisements displayed on the social media platforms.
The regulator further contended that its notice was merely a compliance directive that gave the company the option to comply with its directives, pay the penalty, or face prosecution.
However, Justice Bogoro rejected the regulator’s submissions, holding that Facebook Nigeria and Meta Platforms Inc. are separate legal entities. The court found that ARCON failed to present sufficient evidence proving that Facebook Nigeria owns, controls, or manages Facebook and Instagram.
The judge also ruled that ARCON breached the company’s right to a fair hearing as guaranteed under Section 36 of the Constitution by accusing it of wrongdoing and imposing a substantial financial penalty without first allowing it to defend itself.
He noted that Section 57(4) of the ARCON Act requires the regulator to provide an alleged offender with a fair hearing before imposing any sanction.
Justice Bogoro further held that the alleged violations were criminal in nature, noting that the law requires a conviction by a competent court before any punishment or financial penalty can be imposed. He concluded that ARCON lacked the legal authority to impose the N60 billion fine without first securing a court judgment.
Consequently, the court set aside ARCON’s October 21, 2024 Notice of Violation and Demand for Compliance and permanently restrained the regulator from enforcing the sanction against Facebook Nigeria.
