The Nigerian government has taken a decisive step against British American Tobacco Nigeria Limited and its affiliated entities, imposing a staggering penalty of $110 million for various infringements. This development comes after a prolonged probe initiated by the Federal Competition & Consumer Protection Commission (FCCPC).
In a press release issued on Wednesday, the FCCPC disclosed the punitive measures against BAT and its affiliate entities. The Commission highlighted that in order to comply with the Consent Order, it dropped ongoing criminal charges against BATN and an individual employee related to attempts to obstruct the investigation.
The investigation, which commenced on August 28, 2020, was set in motion following the receipt of credible information regarding potential infringements by British American Tobacco Nigeria Limited and its affiliate companies.
Subsequently, the FCCPC obtained an Order and Warrant from the Federal High Court. This culminated in coordinated searches and seizures at multiple locations associated with BAT Parties and a service provider on January 25, 2021.
Significantly, the Commission meticulously gathered substantial evidence, including forensic analysis of electronic communications and other pertinent data obtained during the searches. Additional evidence from reputable sources was also secured, leading to the establishment of violations under the law.
Following a comprehensive review of the amassed evidence, BAT Parties’ representations, and their cooperation in accordance with the Commission’s demands, the investigation was concluded. This marked the mutual execution of a Consent Order and Notice, with both parties assenting to critical terms.
The key stipulations encompass BAT Parties’ agreement to remit a hefty penalty of $110,000,000, subject to Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations, 2020, and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigative Cooperation/Assistance Rules and Procedures, 2021.
Moreover, BAT Parties are now obligated to undergo compliance monitoring under the Commission’s supervision for 24 months, ensuring a tangible shift in their behavioral and business practices to align with prevailing competition laws, regulations, and tobacco control efforts.
As a crucial mitigation measure, BAT Parties are required to engage in mandatory public health and tobacco control advocacy, in strict compliance with tobacco control legislation and regulations, deemed satisfactory by the Commission. Additionally, they must provide Written Assurances to the Commission as enforced by Section 153 of the FCCPA.
In a reciprocal gesture for BAT Parties’ fulfillment of their obligations under the Consent Order, the Commission withdrew ongoing criminal charges against BATN and at least one employee related to impeding the execution of the search warrant and initial non-cooperation with the investigation.
This resolute action by Nigeria’s FCCPC serves as a pivotal moment in enforcing accountability and upholding regulatory integrity within the corporate sector, specifically in the realm of consumer protection and competition laws.
