British American Tobacco’s Paid $110m Fine, FCCPC Discloses

James Emejo in Abuja

The acting Executive Vice Chairman (EVC), Federal Competition and Consumer Protection Commission (FCCPC), Dr. Adamu Abdullahi, has confirmed that the British American Tobacco (BAT) has paid the $110 million fine imposed on the company by commission in 2022.
Addressing journalists at a media briefing to showcase his achievements in the seven months period he held sway at the commission, Abdullahi affirmed that BAT completed the payment in two installments – in January and March 2023.
The FCCPC had fined the company and its affiliates over a range of infringements of the Federal Competition and Consumer Protection Act, National Tobacco Control Act and sundry legal instruments
The other firms named in the sanctions regime are the British American Tobacco Marketing (Nigeria) Limited (BATMN), British American Tobacco Plc, British American Tobacco (Holdings) Limited – all referred to as BAT parties.
He said the payment was at the official exchange rate at the time through the Central Bank of Nigeria (CBN).
He said federal government received 40 per cent of the income while 60 per cent went to FCCPC.
Abdullahi took over as acting EVC in January 2024 following the disengagement of Babatunde Irukera.
On his achievements, he said, “In the last seven months, the commission actively worked to prevent anti-competitive practices, protect consumers, and foster a competitive market.
“Our efforts included enforcing the Federal Competition and Consumer Protection Act (FCCPA), reviewing mergers, conducting investigations, and engaging in consumer and business education, among others.”
He said to address public concerns over soaring food prices, the commission implemented measures to curb price gouging, promote fair competition, and protect consumers.
He said,”We monitored markets, partnered with stakeholders, enforced pricing transparency, and sensitised consumers. We also took action against underweight bags of rice, the sale of expired goods, cement price hikes, substandard iron rods, and alleged discriminatory practices in a Chinese supermarket.
“These efforts underscore the government’s dedication to safeguarding Nigerian consumers and fostering a fair marketplace.”
He noted that to uphold the sanctity of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and successfully implement its provisions, the commission diligently prosecuted cases involving offenders of the law.
He said, “Notably, on Friday, May 17, 2024, the Federal High Court sitting in Lagos delivered a landmark judgment, convicting Dr. Anuoluwapo Funmilayo Adepoju and MedContour Services Limited on all five counts of obstructing an investigation by the FCCPC.
“The court upheld the FCCPC’s broad investigative powers under the FCCPA, ruling that the FCCPA applies to ‘all undertakings and all commercial activities’ within Nigeria, including health services related to consumer protection.
“This judgment strengthened the FCCPC’s authority to investigate consumer rights violations across all sectors, including healthcare, and serves as a warning to businesses that impede or obstruct regulatory investigations.”
He said, “In another development, the Federal High Court struck out a lawsuit filed by the Centre for Social Justice Ltd/Gte against the FCCPC in Suit No: FHC/ABJ/CS/1210/2020.
“In collaboration with the Nigerian Civil Aviation Authority, the Commission initiated investigations against international airlines over high airfares, leading to the release of their lowest inventories in the Nigerian market, which had been geographically blocked due to trapped funds.
“Furthermore, only last week, FCCPC issued a final order and imposed a monetary penalty of $220,000,000.00 (Two Investigations/ Enforcement of the FCCPA
To uphold the sanctity of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and successfully implement its provisions, the Commission diligently prosecuted cases involving offenders of the law. Notably, on Friday, May 17, 2024, the Federal High Court sitting in Lagos delivered a landmark judgment, convicting Dr. Anuoluwapo Funmilayo Adepoju and MedContour Services Limited on all five counts of obstructing an investigation by the FCCPC. The Court upheld the FCCPC’s broad investigative powers under the FCCPA, ruling that the FCCPA applies to “all undertakings and all commercial activities” within Nigeria, including health services related to consumer protection. This judgment strengthened the FCCPC’s authority to investigate consumer rights violations across all sectors, including healthcare, and serves as a warning to businesses that impede or obstruct regulatory investigations.
In another development, the Federal High Court struck out a lawsuit filed by the Centre for Social Justice Ltd/Gte against the FCCPC in Suit No: FHC/ABJ/CS/1210/2020.
In collaboration with the Nigerian Civil Aviation Authority, the Commission initiated investigations against international airlines over high airfares, leading to the release of their lowest inventories in the Nigerian market, which had been geographically blocked due to trapped funds.
“Furthermore, only last week, FCCPC issued a final order and imposed a monetary penalty of $220,000,000.00 (Two Hundred and Twenty Million USD) against Meta Platforms Inc. and WhatsApo LLC over discriminatory practices in Nigeria.”
He further stated that the commission intensified its engagement with Ministries, Departments and Agencies and stakeholders to sign separate Memorandum of Understanding in compliance with the FCCPA against Meta Platforms Inc. and WhatsApo over discriminatory practices in Nigeria.
Among other things, Abdullahi said the commission was currently implementing data analysis techniques to systematically analyse consumer complaints
to help in identifying patterns of unfair practices, leading to targeted interventions and improved consumer protection measures.
He pointed out that the commission continued to advocate for the rights of Nigerian consumers, particularly in the digital money lending industry, while implementing the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending to regulate the activities of Digital Money Lenders (DMLs), otherwise referred to as loan sharks.
He said, “These steps include ensuring that all DMLs register with the FCCPC, operate legally and are identifiable, ensure fair treatment of borrowers, transparent loan terms and conditions with no hidden fees, observe a cap on punitive interest rates to prevent exploitation and engage in responsible lending practices to avoid overburdening borrowers.”
He also said FCCPC conducted a series of merger reviews to prevent anticompetitive practices in mergers and acquisitions, helping to preserve consumer choices by preventing large companies from unnecessarily acquiring smaller competitors and restricting options.
He added that from inception, the commission had received a total of 294 transactions, out of which 22 were approved in 2024, while eight applications are currently being reviewed.