By 𝔸bdulrazak Tomiwa

The Supreme Court of Nigeria has affirmed a judgment ordering 9mobile to pay approximately $87.5 million to investors Afdin Ventures and Dirbia Nigeria. This ruling upholds a previous Court of Appeal decision and a 2022 arbitral award.

The dispute arose when the firms, major investors during the Etisalat Nigeria era, claimed they were excluded from company affairs. They alleged the company was being sold to new bidders without their consent despite their significant financial stakes.

In 2022, an arbitrator ordered 9mobile to refund the initial $43 million investment. Due to missed payment deadlines, accrued interest, and legal costs, the total debt has now escalated to over $87.4 million.

9mobile challenged the award, arguing it never signed the original contract containing the arbitration clause. The company sought to void the ruling by claiming it was not legally bound to the specific arbitration agreement.

A five-member Supreme Court panel, led by Justice Mohammed Garba, unanimously dismissed the appeal. The court ruled that 9mobile’s arguments lacked merit and emphasized that contractual obligations remain binding when benefits are transferred.

Justice Tijani Abubakar stated that the “doctrine of privity” cannot be used to shield parties who have actively benefited from a contract. The court found 9mobile was “inextricably intertwined” with the investment funds it received.

The apex court criticized 9mobile’s attempt to evade the financial consequences of a transaction that helped grow its business. It ruled that since the company utilized the funds, it must respect the associated dispute resolution mechanisms.

This final ruling concludes a long-standing legal battle over ownership and financial mismanagement.

The Supreme Court’s decision is final, granting the aggrieved investors the right to enforce the $87.5 million payment.