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NIGERIAN TELECOM GIANT GLO, NCC SLAPPED WITH N20 BILLION LAWSUIT OVER ALLEGED SPECTRUM LICENCE FRAUD

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  CapitalTimesNews / 2 months
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• 3 min read

Telecommunications giant Glo Mobile Limited, the Nigerian Communications Commission (NCC), and indigenous firm Megatech Engineering Limited have been dragged before the Federal High Court in Abuja over an alleged breach of contract. The legal action was instituted by another indigenous company, Mosakab Nigeria Limited, and its promoter, Mashood Mustapha, who are seeking over N20 billion in damages for what they term an unlawful violation of their contractual agreement. In the suit marked FHC/ABJ/CS/1534/2024, the plaintiffs are asking the court to nullify the sale of a Spectrum Licence in the 2.6 GHz band by Megatech to Glo Mobile, insisting the transaction was tainted by fraud and illegality. Megatech, Glo Mobile, and the NCC are listed as the 1st to 3rd defendants respectively. Through their counsel, George Ibrahim (SAN) of the Ogwu James Onoja SAN Chambers, the plaintiffs are seeking an order directing Megatech to fulfil its financial obligation of $10 million under a Consultancy Agreement executed on June 29, 2017. They are also requesting an order compelling the NCC to revoke the 2.6 GHz Spectrum Licence issued to Megatech in March 2020, which they claim was secured through their facilitation as consultants. “The plaintiffs fully carried out their contractual obligations and are entitled to the unpaid balance of $9,578,947,” stated their legal plea. They further want Megatech to pay N5 billion for breach of contract and another N10 billion as general damages for the harm allegedly suffered. Additionally, they are asking the court to mandate Megatech to allocate between 5 and 10 percent of its outstanding shares to Mashood Mustapha, as stipulated in the 2017 Consultancy Agreement. In their statement of claim, they assert that Megatech engaged their consultancy services in 2017 to help secure a national licence for the 2.5/2.6 GHz spectrum band. Following the agreement, Mosakab Nigeria Limited formally executed the contract, after which its promoter deployed resources to actualise the assignment. Subsequently, after multiple engagements with relevant government agencies, the NCC on March 26, 2020, awarded Megatech a 40 MHz (TDD) Spectrum Licence in the 2.6 GHz band for a five-year period. The plaintiffs claim they facilitated communications between Megatech and the NCC and that statutory payments by Megatech were made afterwards. They further allege that Megatech later opted to share the Spectrum Band with Glo Mobile, a process they helped to secure with the NCC at a personal cost of $250,000. However, problems arose when Megatech failed to pay the agreed $10 million consultancy fee, remitting only $421,052 and leaving an outstanding balance of $9,578,947. “Despite benefiting from the spectrum allocation, Megatech proceeded to sell its interest to Glo Mobile without settling the outstanding consultancy fee,” the plaintiffs alleged. They are also seeking a court declaration that they are entitled to the unpaid balance and an order for the defendants to pay N50 million as litigation costs. Justice Mohammed Garba Umar has adjourned the matter to March 3, 2026, for hearing.