Airtel Network In N4.8 Billion Debt Mess With Lagos Partner

The television advert sign-off message by Airtel Networks Limited (Airtel Nigeria), one of the leading mobile telecommunications company in Nigeria is that “you can manage everything in life, but not your data.”

But recent event has shown that the company itself has not been able to manage its business relationship with its business partners.

Founded in 2001 as Econet Nigeria and was awarded Digital Mobile License (DML) for communication service in Nigeria. It made history on August 5, 2001 by becoming the first telecommunications service provider to launch commercial GSM services in Nigeria.

The company has suffered series of nomenclature changes until it was christened Airtel in 2010 when Bharti Airtel, the parent company of Airtel Nigeria, completed the acquisition of Zain Group’s Africa business in a $10.7 billion transaction.

On the 24th of July, 2020, the Court of Appeal upheld the decision of the Lagos State High Court delivered by Honourable Justice A, O Williams dated the 4th October, 2016 over indebtedness of N4.8 Billion by Airtel to Plus Limited, a dealer/trade partner with Airtel.

Having lost the case at the lower court, Airtel rushed to the Court of Appeal to query the correctness of the decision of the High Court of Lagos in suit no LD/187/2012, delivered on 4th October 2016.

The business relationship between the two dated back to 2001, and “by dint of different agreement, the Airtel appointed the Plus Limited the distributor, dealer and trade partner for its telecommunication services through the sale of its pre-paid products.”

While Plus Limited claimed that it discharged its obligations, in the agreements, efficiently and diligently which earned it awards from the Airtel in consideration of the its telephony services, it was entitled to commissions, business incentives, etc, from the company.

Later on, there arose disagreement between them over the alleged indebtedness of the respondent to the appellant. When the disagreement could not be resolved, the Airtel terminated the Plus’ dealership with it in the consequence, Plus Limited engaged a firm of forensic to determine their financial position to each other.

The report of the forensic accountants which was served on Airtel showed that the company was indebted to the Plus Limited. Sequel to that, the dealer beseeched the lower court, via a writ of summon filed on 30th March, 2012 and tabled against the Airtel the following results:

The sum of 4,888,434, 208.92 (Four Billion, eight hundred and eighty-eight, four hundred and thirty-four and eight naira, ninety-two kobo) being the cumulative amount of commission and other variety of income, bonuses, benefits, etc, due to be paid or refunded by the Airtel to the claimant.

In reaction, the Airtel joined issues with the dealer and denied liability. In its pleading, it raised defences of admission of indebtedness estoppel and statute – bar against the suit.

Following the discordant claims, the lower court had a full scale determination of the case. In proof of the claim, the respondent fielded two witnesses. In disproof of it, the appellant called one witness. Loads of documentary evidence were tendered before the lower court. At the closure of evidence, the parties, through their counsel, addressed the lower court in the manner required by law. In a considered judgment delivered on the 4th October, 2016, the lower court granted the Plus Limited’s claim.

Airtel was incensed with the decision. And on the 6th October, 2016, it lodged a six-ground of appeal, wherein it prayed this court for an order to set aside in its entirety, the judgment of the Lagos State High Court delivered by Honourable Justice A, O Williams in suit number LD/487/2011.

Thereafter, the parties through their counsel, filed and exchanged their respective briefs of argument in line with the procedure regulating the hearing of civil appeals in this court. The appeal was heard on 24th June, 2020.

In his lead judgement at the Court of appeal Lagos division on Friday 24th July, 2020, Justice Obande Fetus Ogbuinya averred that “the documents, authored by an expert was not challenged by the appellant during the trial of the case before the lower court. The law grants the lower court the liberty to act on unchallenged evidence or documentary.”

He added that the exhibit clearly reveals that Airtel (the appellant) was mired in debt to the Plus Limited (the respondent) in the stupendous sum of N4.8 Billion, saying that Indebtedness signifies a state of owing money or something owed or debt to another person

“In my considered view, the lower court did not transgress the law when it relied on exhibit C1 to found in favour of the respondent in the matter.

“On the whole, having resolved the three issues against the appellant, the destiny of the appeal is obvious. It is devoid of any morsel of merit and deserves the penalty of dismissal.”

Justice Ugochukwu Anthony Ogakwu said he “joined in dismissing the appeal and I abide by the consequential order as to cost made by the leading judgement.”

So also, Justice Balkisu Bello Aliyu who submitted that “I am entirely in agreement with the reasoning and conclusion which with respect, I adopt as mine in also dismissing this appeal for lacking merit. I affirm the judgment of the trial court. Appeal dismissed by me.”