ARCON powers receive fresh judicial backing as the Federal High Court dismisses an injunction application challenging the regulator’s authority

The Federal High Court in Lagos has reinforced the regulatory authority of the Advertising Regulatory Council of Nigeria (ARCON), dismissing an application for an interlocutory injunction filed by Watercress Hotel International Limited and co-plaintiff Samuel Ayinde against ARCON and the Attorney General of the Federation.

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The ruling, delivered by Justice Akintayo Aluko in Suit No. FHC/L/CS/12/26, marks another significant legal victory for the advertising regulator and adds to a growing body of judicial decisions affirming the validity of ARCON’s statutory mandate.

At the centre of the dispute was an application seeking to restrain ARCON and its agents from taking further regulatory or enforcement action against Watercress Hotel International Limited pending the determination of the substantive suit.

The plaintiffs argued that content published on the company’s social media page constituted an exercise of the constitutional right to freedom of expression and fell outside ARCON’s regulatory jurisdiction because the platform was private in nature.

Justice Aluko rejected that argument, holding that the critical consideration is not the platform used to disseminate content but the nature and purpose of the communication itself.

The ruling is expected to have far-reaching implications for future disputes involving online and social media advertising, as it substantially weakens attempts to rely on the “private platform” defence to avoid regulatory oversight.

The court also found that the plaintiffs failed to provide sufficient and credible evidence to establish the existence and particulars of an alleged bench warrant which formed a key basis of the application.

As a result, all reliefs sought in the interlocutory application were refused.

While the decision represents a major procedural victory for ARCON, the court noted that it was not a final determination of the substantive issues raised in the suit, which remain pending before the court.

The latest ruling follows a series of judicial endorsements of ARCON’s powers under the ARCON Act 2022.

In April 2025, the Federal High Court ruled in favour of ARCON in the case involving Digi Bay Limited, trading as Betway Nigeria, affirming the council’s authority to regulate digital and social media advertising, including content published on Instagram and directed at Nigerian audiences.

A separate judgment delivered in November 2025 in the case of Godec Power Nigeria Limited v. ARCON also upheld the validity of the ARCON Act and confirmed the regulator’s oversight of advertising communications targeted at the Nigerian market.

The Watercress Hotel case now represents a third judicial affirmation of ARCON’s regulatory authority, strengthening the legal foundation of the council’s oversight role within Nigeria’s advertising industry.

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The matter has been adjourned until October 26, 2026, for an accelerated hearing. The court directed all parties to file and exchange outstanding processes within stipulated timelines to ensure the substantive suit is determined expeditiously.