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British American Tobacco to pay Nigeria $110m over infringements

This announcement came via a statement released on Wednesday by the Federal Competition and Consumer Protection Commission

Promise Eze by Promise Eze
December 27, 2023
in National
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  • Following an extensive investigation against BAT and its associated entities, the Commission revealed this penalty

The Federal Government has declared that British American Tobacco, Nigeria Limited, and its affiliated entities will face a penalty of $110 million for their infringements.

This announcement came via a statement released on Wednesday by the Federal Competition and Consumer Protection Commission (FCCPC) on its official page.

Following an extensive investigation against BAT and its associated entities, the Commission revealed this penalty. To fulfill their obligations under the Consent Order, the Commission withdrew pending criminal charges against BATN and at least one employee accused of obstructing an inquiry.

The Commission initiated an active inquiry into British American Tobacco Nigeria Limited and its associated entities (BAT Parties) on August 28, 2020, after credible information on BAT’s infractions surfaced. Subsequently, the FCCPC obtained an Order and Warrant from the Federal High Court.

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On January 25, 2021, the Commission conducted simultaneous searches and seizures at the premises of various BAT Parties and a service provider as part of its investigation.

“The Commission obtained substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search, as well as other evidence obtained during and after the search from other legitimate sources.

“Upon full consideration of the record, BAT Parties’ additional articulation, representations and correspondence; totality of evidence procured, violations established under law, BAT Parties’ entry into, and conduct in cooperation and assistance under the Commission’s CAF; the Commission closed the investigation by the Commission and BAT Parties’ mutual execution of a Consent Order and Notice with both parties agreeing:

“That the BAT Parties pay a penalty of $110,000,000 (One Hundred and Ten Million Dollars) under and in accordance with 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;

“That BAT Parties’ shall be subject to compliance and monitoring under the Commission’s supervision for a period of 24 months to ensure appropriate behavioural and business practices modification to be more consistent with compliance with current competition laws/regulations and tobacco control efforts.”

It added that mandatory public health and tobacco control advocacy in a manner consistent with tobacco control legislation and regulations and acceptable to the Commission as a mitigating factor to prove a pattern of undermining and circumventing national tobacco control policies and regulations; and That BAT Parties shall provide Written Assurances to the Commission under Section 153 of the FCCPA as required.

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