Consultancy firm, Molugrace Firstclass International Services, has sued Nigeria Bottling Company at Lagos State High Court for an alleged data breach.

The claimant is seeking a declaration that the defendant’s use of its tax data between March 6, 2023 and May 22, 2025, without authorisation or consent, was “unlawful, and in breach of the claimant’s rights under Nigeria Data Protection Act, 2023.”

In the suit, YSD/14757GCMW/2026, it seeks N12.5 million in special damages, N50 million in general damages and N20 million in exemplary and aggravated damages.

It said the special damages represent forensic accounting and legal costs incurred as a result of the alleged unauthorised use of its tax data.

The claimant said NBC engaged it as a consultant between May 1, 2022 and December 31, 2022, during which its tax identity was disclosed to the bottling company in compliance with tax laws, enabling the company to file tax returns.

However, the claimant alleged that without its consent or authorisation, NBC continued to use its tax identity to post transactions with another company between March 2023 and May 2025, as though those transactions had been carried out with the claimant.

Through its lawyer, Princewill Okoroafor of P. O. Okoroafor & Co, the company said it exchanged correspondences with NBC in a bid to resolve the matter, but to no avail.

It said the alleged irregularities were discovered in 2025 on Federal Inland Revenue Service’s TaxPro Max platform, prompting filing of the suit.

The claimant further alleged that despite NBC admitting in one of its correspondence that it used the company’s tax identity without consent, it failed to to regularise the tax liabilities arising from the action.

As a result, the claimant said its tax clearance certificates for 2024, 2025 and 2026 were revoked by Federal Inland Revenue Service (FIRS).

The claimant contended that the filings falsely created the impression of business transactions between both parties after their contractual relationship ended in 2022.

It also seeks a declaration there was no transaction between the parties between March 6, 2023 and May 22, 2025, to warrant the tax postings made by the defendant using its data.

The firm prayed the court for an order directing NBC to rectify, withdraw and/or correct false tax filings made with FIRS and any other tax authority, including issuing corrective filings and notifying the authorities of the errors.

It sought an order restraining NBC, its agents or privies from further using or processing its tax data without consent.

The claimant is also asking for interest on the judgment sum at 10 per cent yearly from date of judgment until liquidation, as well as any other reliefs the court may deem fit to grant.

An insider in the firm raised concerns over data security: “When a large corporation handles sensitive tax data this way, it raises a fundamental question — how secure is corporate data in Nigeria?”

The claimant said it would rely during trial on the consultancy contract covering May 1, 2022, to December 31, 2022.

It maintained that during the period, it disclosed its tax details in good faith and in line with relevant tax laws solely for the purpose of filing returns for the agreed duration.

The claimant insisted that since December 31, 2022, there has been no contractual, commercial or business relationship between it and NBC, stressing that it neither supplied goods nor rendered services to the defendant thereafter.

To investigate the discrepancies, the claimant said it engaged a forensic audit firm, Adewale Disu & Co, in April 2025, with the engagement lasting until February 2026.

Following the forensic review of its tax records and correspondence with the FIRS, the claimant alleged that NBC, without its knowledge or approval, processed and used its tax data to file returns relating to transactions conducted with a third party.

It added that the defendant falsely represented such filings, including withholding tax, as arising from transactions between both parties after December 31, 2022, when no such dealings existed.

NBC, in response to letters sent by the claimant’s solicitors, stated that, upon investigation, it was discovered that there was “an administrative error in the use of the taxpayer identification number” associated with the claimant in the filing of withholding tax.

When contacted, NBC declined to comment. A spokesman told The Nation that the company would not comment because the case is sub judice. (The Nation)

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