Glo Mobile, NCC, Megatech Dragged to Court Over Alleged Contract Breach, Non-Payment of USD 9.57m Consultancy Fee

By our Correspondent

Telecommunications giant Glo Mobile Limited, the Nigerian Communications Commission (NCC), and indigenous firm Megatech Engineering Limited have been sued before the Federal High Court in Abuja over an alleged breach of contractual agreement and refusal to pay a consultancy fee amounting to USD 9,578,947.

The lawsuit was instituted by Mosakab Nigeria Limited and its promoter, Mashood Mustapha, who are seeking over N20 billion in damages for what they describe as an unlawful breach of contract.

In the suit marked FHC/ABJ/CS/1534/2024, the plaintiffs are asking the court to void or set aside the sale of the Spectrum Licence in the 2.6 GHz band by Megatech to Glo Mobile, alleging that the transaction was tainted by fraud and illegality.

Megatech Engineering Limited, Glo Mobile, and the NCC are listed as the 1st, 2nd, and 3rd defendants respectively.

Filed by George Ibrahim, SAN, of Ogwu James Onoja (SAN) & Co., the plaintiffs are seeking an order compelling Megatech to fulfill its monetary obligation of USD 10 million owed under a Consultancy Agreement executed on June 29, 2017.

They are also requesting an order directing the NCC to revoke the Spectrum Licence in the 2.6 GHz band issued to Megatech in March 2020—an approval they claim to have facilitated as consultants.

In addition, the plaintiffs are demanding N5 billion in compensation for breach of contract and another N10 billion as general damages for the alleged injury suffered. They also want the court to compel Megatech to allot between 5% and 10% of its outstanding shares to the second plaintiff, in accordance with the terms of the 2017 Consultancy Agreement.

In their statement of claim, the plaintiffs assert that Megatech engaged them in 2017 to secure a 2.5/2.6 GHz band for national operations. Following the signing of a formal agreement that year, Mosakab Nigeria Limited claims it deployed significant human and material resources to fulfil the mandate.

After several engagements with government agencies, the NCC, on March 26, 2020, reportedly issued Megatech a Spectrum Licence of 40 MHz (TDD) in the 2.6 GHz band for a five-year nationwide deployment.

The plaintiffs maintain that statutory payments were made on behalf of Megatech and that, in the course of the process, Megatech opted to share the Spectrum Band with Glo Mobile—a development they said was achieved through their efforts and resources, including an expenditure of USD 250,000.

Trouble allegedly began when Megatech refused to remit the agreed USD 10 million consultancy fee, paying only USD 421,052 and leaving an outstanding balance of USD 9,578,947 despite the binding agreement.

The plaintiffs further claim that after benefiting from the Spectrum Band allocation, Megatech proceeded to sell its interest to Glo Mobile without settling the outstanding consultancy fee.

They are therefore asking the court to declare that they duly fulfilled their contractual obligations and are entitled to the unpaid balance of USD 9,578,947. They are also seeking N50 million as litigation costs.

Justice Mohammed Garba Umar has scheduled the hearing of the matter for March 3, 2026.