Court Dismisses Watercress Hotel’s Bid to Restrain ARCON, Upholds Regulator’s Oversight Powers

• Jun 17, 2026

The Federal High Court in Lagos has dismissed an application for an interlocutory injunction filed by Watercress Hotel International Limited and co-plaintiff, Samuel Ayinde, against the Advertising Regulatory Council of Nigeria (ARCON) and the Attorney General of the Federation, in a ruling that further reinforces the advertising regulator’s statutory authority.

Justice Akintayo Aluko, who delivered the ruling in Suit No. FHC/L/CS/12/26, refused the plaintiffs’ request to restrain ARCON from taking further regulatory or enforcement actions pending the determination of the substantive suit.

The plaintiffs had sought the court’s intervention over what they described as regulatory actions by ARCON, including issues relating to an alleged bench warrant. They argued that content published on the company’s social media platforms constituted private communication protected under the constitutional right to freedom of expression and therefore fell outside the Council’s regulatory jurisdiction.

However, the court rejected the argument, holding that the determining factor in assessing ARCON’s jurisdiction is not the platform through which content is disseminated but the nature and purpose of the communication itself.

The court also found that the plaintiffs failed to provide sufficient evidence to establish the existence and particulars of the alleged bench warrant they sought to restrain, thereby weakening the basis of the application.

Consequently, all reliefs sought in the interlocutory application were refused.

Although the ruling does not determine the substantive issues in dispute, it represents another judicial endorsement of ARCON’s regulatory mandate under the Advertising Regulatory Council of Nigeria Act, 2022.

The decision follows a series of court victories for the Council. In April 2025, the Federal High Court, in Digi Bay Limited (trading as Betway Nigeria) v. ARCON, upheld the regulator’s authority over digital and social media advertising targeted at Nigerian audiences, including content disseminated through platforms such as Instagram.

Similarly, in November 2025, the court in Godec Power Nigeria Ltd. v. ARCON affirmed the validity of the ARCON Act and the Council’s powers to regulate advertising communications directed at the Nigerian market.

Legal observers say the latest ruling further strengthens judicial recognition of ARCON’s authority to oversee advertising content across both traditional and digital media channels.

The substantive suit filed by Watercress Hotel International Limited and its co-plaintiff remains pending before the court. Justice Aluko adjourned the matter until October 26, 2026, for accelerated hearing and directed all parties to file and exchange outstanding processes within the stipulated timelines to facilitate the expeditious determination of the case.