The Federal High Court in Lagos has nullified the N60 billion penalty imposed on Facebook Nigeria Operations Limited by the Advertising Regulatory Council of Nigeria (ARCON), holding that the regulator exceeded its legal powers and denied the company fair hearing.
In a judgment delivered by Justice Yellim Bogoro on June 18, 2026, the court declared ARCON's Notice of Violation and Demand for Compliance issued on October 21, 2024, null and void, describing it as unconstitutional and unlawful.
The court also barred the regulator from taking further steps to enforce the sanction against the company.
The controversy arose after ARCON accused Facebook and Instagram of displaying advertisements to Nigerian audiences without obtaining prior approval from the Advertising Standards Panel, an action it said contravened provisions of the Advertising Regulatory Council of Nigeria Act, 2022.
Based on the alleged violations, the regulator directed Facebook Nigeria to discontinue the advertisements and demanded payment of N60 billion as a penalty.
Challenging the decision, Facebook Nigeria, through its lawyer, Mofesomo Tayo-Oyetibo (SAN), argued that ARCON lacked the authority to impose sanctions for alleged criminal offences without first obtaining a judicial determination.
The company also maintained that it does not own or operate either Facebook or Instagram, insisting that both platforms belong to and are controlled by [Meta Platforms Inc.](https://about.meta.com/?utm_source=chatgpt.com), a separate corporate entity.
ARCON, represented by Akinlolu Kehinde (SAN), urged the court to dismiss the suit, contending that Facebook Nigeria serves as Meta's representative in Nigeria and should therefore be accountable for advertisements displayed on the platforms within the country.
The regulator further argued that the notice constituted a compliance mechanism rather than a criminal sanction and gave the company the option of complying with regulatory directives or facing prosecution.
However, Justice Bogoro disagreed.
The judge held that Facebook Nigeria and Meta Platforms Inc. are separate legal entities and ruled that ARCON failed to provide credible evidence establishing that the Nigerian company owns, controls or manages Facebook and Instagram.
The court said the regulator's assertion that Facebook Nigeria represents Meta's interests in the country was insufficient to hold it liable for the alleged breaches.
Justice Bogoro also found that ARCON violated the company's constitutional right to fair hearing by making allegations and imposing a substantial financial penalty without first allowing it to respond.
According to the judge, Section 57(4) of the ARCON Act requires the regulator to give any alleged violator an opportunity to be heard before imposing sanctions.
The court further held that the offences cited by ARCON were criminal in nature and therefore subject to judicial determination.
Justice Bogoro noted that Section 34 of the ARCON Act classifies the unauthorised exposure of advertisements as an offence and provides that punishment can only be imposed after conviction by a competent court.
He ruled that ARCON could not lawfully determine criminal liability and impose a N60 billion penalty through an administrative process.
"The N60 billion demand, irrespective of how it is described, is in substance a fine," the court held, adding that such punishment can only be imposed following due judicial proceedings.
The court consequently declared that ARCON lacks the statutory authority to impose fines for alleged violations of criminal provisions contained in the ARCON Act without a prior conviction.
Justice Bogoro thereafter set aside the regulator's notice and granted a perpetual injunction restraining ARCON, its officials, agents and representatives from enforcing the sanction against Facebook Nigeria.
The ruling represents a significant setback for the advertising regulator and is expected to shape future disputes involving the enforcement powers of regulatory agencies and the limits of administrative sanctions in Nigeria.
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