FG Imposes $110 Million Fine On British-American Tobacco, Abandons Criminal Charges

FG Imposes $110 Million Fine On British-American Tobacco, Abandons Criminal Charges....KINDLY READ THE FULL STORY HERE▶

The Federal Government, acting through the Federal Competition and Consumer Protection Commission (FCCPC), has imposed a $110 million fine on British American Tobacco (BAT) and its affiliated companies. The fine is attributed to alleged violations of the Federal Competition and Consumer Protection Act, the National Tobacco Control Act, and various legal instruments, as stated in a Wednesday release by the FCCPC….CONTINUE READING

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Under the terms of the resolution, BAT is required to undergo compliance and monitoring for a 24-month period. The company must also engage in mandatory public health and tobacco control advocacy, and provide written assurances to the commission. In exchange for fulfilling these obligations, the FCCPC withdrew pending criminal charges against BATN (British American Tobacco Nigeria Limited) and at least one employee related to obstructing the commission and initial lack of cooperation during the investigation.

The FCCPC initiated an active investigation into BAT Parties, including British American Tobacco Nigeria Limited, on August 28, 2020, following credible information and intelligence received. The resolution marks the conclusion of this investigation, with the FCCPC stating that it gathered substantial evidence through a court-approved order of search and seizure at BAT locations and a service provider’s location on January 25, 2021.

The commission highlighted the cooperation of BAT Parties under its Cooperation/Assistance Rules & Procedure, 2021, which provides benefits such as possible reduced monetary penalties and prosecutorial discretion. The imposed penalties, totaling $110 million, were determined after careful consideration of evidence, representations, and correspondence from BAT Parties.

The FCCPC emphasized its commitment to promoting fair market practices and protecting consumer interests, noting that a distorted market undermines economic growth and shared prosperity. In a related context, the Executive Vice Chairman of FCCPC, Babatunde Irukera, stressed the need to hold businesses accountable for their actions, disclosing that the commission generated N56 billion, mainly from penalties, as Internally Generated Revenue in 2023.

The External Affairs Director of BAT, Odiri Erewa-Meggison, was contacted for comment but had not provided feedback at the time of filing this report.

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