SleekChip Technologies Faces Financial Crisis As MTN Pursues ₦6 Billion Debt Recovery

SleekChip Technologies is reportedly facing financial crisis as MTN pursues ₦6 billion debt recovery in a fierce legal battle.

NewsOnline Nigeria reports that SleekChip Technologies Limited, a licensed provider of international Direct Access and National Transit services, is facing a major financial and legal crisis following a ₦6 billion interconnect debt dispute with MTN Nigeria.

This Nigeria news platform understands that the crisis reportedly deepened after MTN filed a lawsuit against more than 20 commercial banks in an effort to trace and recover the funds allegedly owed by SleekChip.

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The telecom giant’s legal action comes on the heels of a Federal High Court judgment delivered in November 2024 by Justice Peter Lifu, who ordered SleekChip to pay $1,971,409.85 (approximately ₦3.28 billion at the Central Bank of Nigeria’s then-official exchange rate of ₦1665.84 to $1), along with accrued interest.

The case stems from a network interconnection agreement signed between MTN and SleekChip on July 23, 2019, which allowed the two companies to exchange voice and SMS traffic for a fee. Despite acknowledging the debt in writing in May 2023 and pledging to clear it by July 20, 2023, SleekChip allegedly failed to make any payment, according to court documents. Justice Lifu also noted that SleekChip did not present a substantial defense in court.

The ruling ordered that interest be applied at a rate of 2 percent above the Nigerian Interbank Offer Rate, effective from January 31, 2022, until the debt is fully settled.

At a court session held on May 16, 2025, MTN’s legal counsel informed the court that most of the banks named in the suit had submitted affidavits disclosing whether they held funds linked to SleekChip. Following a review of the disclosures, MTN requested that more than 10 banks be discharged from the case, having confirmed no ties to SleekChip’s accounts. Justice Lifu granted the request and released those banks from further proceedings.

However, the legal battle took a new turn as some banks raised concerns over MTN’s alleged attempt to use Bank Verification Number (BVN) data to trace SleekChip’s assets without prior court approval. Justice Lifu adjourned the matter to June 26, 2025, for further proceedings.

Industry analysts see the case as a landmark in the enforcement of telecom agreements in Nigeria.

“This development reinforces the message that operators must prioritize contractual obligations,” said Dr. Abiodun Adebayo, telecom analyst at Digital Frontiers Consultancy. “We are seeing legal enforcement take center stage, and this will likely send shockwaves through the industry.”

The outcome of the case is expected to set a precedent for how telecom operators handle interconnect agreements and financial accountability moving forward.