The Federal Competition and Consumer Protection Commission (FCCPC) has imposed a hefty fine of $110 million on British American Tobacco (BAT) Nigeria and its associated companies for numerous breaches of the FCCP Act and other regulations.
The commission, in a statement released in Abuja on Wednesday, revealed that these companies had also violated the National Tobacco Control Act and various other legal instruments.
The fine was determined following a collaborative discussion between the FCCPC and the BAT entities under the FCCPC’s Cooperation/Assistance Rules & Procedure (CARP), 2021.
The FCCPC’s Cooperation/Assistance Framework offers benefits such as potential reductions in monetary penalties and exemption from the application of the Commission’s Administrative Penalties Regulations 2020, among others.
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The FCCPC also stated that the BAT entities would be subject to compliance monitoring under the FCCPC’s supervision for a period of 24 months to ensure appropriate business and behavioural practices.
As part of the agreement, the companies are required to conduct mandatory public health and tobacco control advocacy in compliance with tobacco control legislation and regulations.
The FCCPC stated, “BAT parties shall provide written assurances to the commission pursuant to Section 153 of the FCCPA as required. In exchange for BAT parties fulfilling their obligations under the consent order, the commission withdrew pending criminal charges against BATN and one employee for attempting to prevent execution of the search warrant and an initial lack of cooperation or compliance with steps in the investigation.”
The commission launched an active investigation into British American Tobacco Nigeria Limited and other affiliated companies (BAT Parties) on August 28, 2020. The investigation was initiated based on the commission’s belief that a series of credible pieces of information and intelligence warranted a more extensive and in-depth inquiry.
The FCCPC stated, “Upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced statutory regulatory/investigatory tools, the court issued an order and warrant of search and seizure.”
On January 25, 2021, the commission executed simultaneous searches and seizures at multiple BAT party locations and the location of a service provider.
The commission collected substantial evidence from forensic analysis of electronic communications and other information and data obtained during the search, as well as other evidence procured during and after the search from other legitimate sources.
The commission said, “Additional investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments.”
The commission reaffirmed its commitment to its mandate to promote and ensure fair markets and protect consumer interests. It stated that the outcome of the investigation demonstrates that commitment and the commission’s desire and will to enforce the law and hold businesses accountable, even when it involves complex, painstaking, and lengthy investigations.