The High Court of the Federal Capital Territory (FCT), Abuja, has temporarily stopped the National Broadcasting Commission (NBC) from terminating a contract related to Nigeria’s transition from analogue to digital television.
The court issued an order for both the NBC and the concerned companies to maintain the status quo until the resolution of the case filed by six aggrieved firms.
Justice A.A. Ademu, presiding over the case, ruled that neither party should take any further action on the disputed contract, to prevent prejudicing the court’s final decision. The order was given during an ex-parte application brought by six companies challenging the NBC’s handling of the digital transition contract.
The dispute arose after NBC allegedly moved to change the terms of the agreement, prompting the companies to seek legal recourse. Justice Ademu emphasised that since the NBC is now aware of the ongoing litigation, it must refrain from any actions regarding the contract until the matter is fully resolved.
The case, initially heard by Justice Ademu, has now been referred to the Chief Judge of the FCT High Court, Justice Hussein Baba Yusuf, for reassignment to another judge following the conclusion of vacation proceedings.
The plaintiffs, which include the Incorporated Trustees of the Association of Licenced Set Top Boxes Manufacturers of Nigeria and five other technology companies, had requested the court to restrain the NBC from interfering with their contractual rights. They sought to prevent the commission from advertising bids or issuing licences related to the digital switch-over until their case is settled.
The companies also accused the NBC of terminating their contract, which allowed them to manufacture one million Set Top Boxes for the digital transition.
They claimed the commission abandoned the agreed-upon Set Top Boxes in favour of Hybrid Android DTH Set Top Boxes, with enhanced functionalities, following an announcement by the NBC Director-General on August 22, 2024. This move, according to the plaintiffs, violated the original terms of their agreement.
NBC and Inview Technologies Limited have been listed as the defendants in the suit, with the companies seeking protection of their investment and exclusive rights granted under the initial agreement for the digital television transition.
