ABUJA, Nigeria – The Federal Competition and Consumer Protection Commission, FCCPC, has imposed a hefty fine of $110 million on British American Tobacco Nigeria, BATN, and its affiliate companies.
This penalty comes after the FCCPC identified multiple violations of the FCCP Act and other legal instruments, including the National Tobacco Control Act.
In a statement released from its Abuja headquarters on Wednesday, December 27, 2023, the commission detailed the nature of these infringements and the consequent actions taken.
This landmark fine, a result of mutual engagement between the FCCPC and BAT under the FCCPC’s Cooperation/Assistance Rules & Procedure (CARP) 2021, marks a significant enforcement of regulatory compliance.
The FCCPC’s Cooperation/Assistance Framework (CAF) provides for benefits including potential reduced monetary penalties and waivers of certain administrative regulations.
The BAT entities, in addition to paying the fine, will undergo 24 months of compliance and monitoring under the supervision of the FCCPC. This monitoring aims to ensure adherence to appropriate behavioral and business practices.
Part of the settlement also involves a mandatory public health and tobacco control advocacy by BAT, compliant with existing tobacco control legislation and regulations.
As per the agreement, BAT is required to provide written assurances to the Commission pursuant to Section 153 of the FCCPA.
In exchange for BAT fulfilling these obligations, the FCCPC agreed to withdraw pending criminal charges against BATN and one of its employees.
These charges were related to attempts to prevent execution of a search warrant and initial non-cooperation in the Commission’s investigation.
The investigation into BATN and its affiliates began on August 28, 2020, prompted by credible information and intelligence deemed actionable by the Commission. This led to the Federal High Court issuing an Order and Warrant of Search and Seizure.
Subsequent searches and seizures executed on January 25, 2021, at multiple BAT locations and a service provider yielded substantial evidence.
This evidence, including forensic analysis of electronic communications and other data, supported the Commission’s findings of multiple legal violations.
“The outcome of this investigation underscores the FCCPC’s commitment to its mandate of promoting fair markets and protecting consumer interests,” an official who spoke to The Trent on Wednesday maintained.
