The Federal High Court in Lagos has struck down the N60 billion sanction imposed on Facebook Nigeria Operations Limited by the Advertising Regulatory Council of Nigeria (ARCON), ruling that the regulator acted beyond its statutory powers and breached the company’s right to 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 restrained the advertising regulator from taking any further action to enforce the sanction against the company.
The dispute stemmed from allegations by ARCON that advertisements displayed on Facebook and Instagram were targeted at Nigerian audiences without obtaining prior approval from the Advertising Standards Panel, as required under the Advertising Regulatory Council of Nigeria Act, 2022.
Following the alleged violations, ARCON directed Facebook Nigeria to halt the advertisements and imposed a N60 billion penalty, describing the infractions as repeated breaches of advertising regulations.
However, Facebook Nigeria challenged the decision before the court through its counsel, Mofesomo Tayo-Oyetibo (SAN), arguing that the regulator lacked the legal authority to determine criminal liability or impose punitive sanctions through an administrative process.
The company further contended that it neither owns nor operates Facebook or Instagram, maintaining that both platforms are controlled 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 Nigeria and should therefore be held accountable for regulatory breaches linked to advertisements displayed on the social media platforms.
The regulator also maintained that its notice was merely a compliance directive that offered the company the choice of complying with its orders, paying the prescribed penalty or facing prosecution.
But Justice Bogoro rejected the regulator’s arguments.
The court held that Facebook Nigeria and Meta Platforms Inc. are distinct legal entities and ruled that ARCON failed to provide sufficient evidence to establish that the Nigerian company owns, manages or controls Facebook and Instagram.
According to the judge, the mere assertion that Facebook Nigeria represents Meta’s interests in the country was insufficient to impose liability for the alleged advertising infractions.
On the issue of fair hearing, the court found that ARCON violated Section 36 of the Constitution by accusing the company of wrongdoing and simultaneously imposing a substantial financial penalty without first giving it an opportunity to defend itself.
Justice Bogoro noted that Section 57(4) of the ARCON Act expressly requires the regulator to accord an alleged violator a fair hearing before imposing any sanction.
The judge further held that the offences alleged by ARCON were criminal in nature, pointing out that Section 34 of the Act classifies the exposure of advertisements in violation of its provisions as an offence.
He ruled that because the law stipulates that punishment can only follow a conviction, ARCON lacked the authority to impose a financial penalty without first securing a court judgment.
The court also held that regardless of how the regulator described the N60 billion demand, it amounted to a fine that could only be imposed by a court or other competent judicial body after due process.
Consequently, Justice Bogoro declared the notice unlawful and issued outside the powers granted to ARCON under the law.
He further held that the regulator has no authority to impose fines for alleged violations of Sections 34(3), 54 or any other criminal provisions of the ARCON Act without a prior conviction.
The court subsequently set aside the October 21, 2024 notice and granted a perpetual injunction restraining ARCON, its officers, agents and representatives from enforcing the sanction against Facebook Nigeria.