Mohammed Shosanya

The Federal Competition and Consumer Protection Commission (FCCPC) has imposed $110 million fine on British American Tobacco Nigeria Limited and other affiliated companies.

A statement on Wednesday issued by the management of the FCCPC led by Barr. Babatunde Irukera, said the fine was prompted by a range of infringements to its Act committed by the company and its affiliates in Nigeria.

The statement reads: “Pursuant to Sections 17 (a), (e), (g), (h), (l), (t), (x), (y); 27, 28, 33, 108, 110, 123, 124, 131 (and others) of the Federal Competition and Consumer Protection Act, 2018
Wednesday, December 27, 2023:

During the year ending 2023, The Federal Competition & Consumer Protection Commission (Commission) came to a final resolution with British American Tobacco (Nigeria) Limited (BATN, British American Tobacco Marketing (Nigeria) Limited (BATMN), British American Tobacco Plc, British American Tobacco (Holdings) Limited (All together referred to as BAT Parties) with respect to a range of infringements of the Federal Competition and Consumer Protection Act, National Tobacco Control Act and sundry legal instruments.

“The Commission on August 28, 2020, opened an active investigation with respect to British American Tobacco Nigeria Limited and other affiliated companies (BAT Parties).

“The commencement of the investigation was based on the Commission’s satisfaction that a series of credible pieces of information and intelligence were actionable enough for broader and deeper inquiry with respect to certain conduct, for, by and on behalf of BAT Parties.

“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.

“In furtherance, and pursuant to the Order and Warrant, the Commission on January 25, 2021 executed simultaneous and contemporaneous searches and seizures at multiple BAT Parties locations and a location of a service provider.

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

“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.

“During the investigation and in furtherance of mutual engagements between the Commission and BAT Parties, BAT Parties in writing sought, and the Commission accepted BAT Parties into cooperation under the Commission’s Cooperation/Assistance Rules & Procedure, 2021 (CARP).

“The Cooperation/Assistance Framework (CAF) provides for benefits such as possible reduced monetary penalties (Rule 4.1); waiver of the application of the Commission’s Administrative Penalties Regulations 2020 (Rule 4.2); as well as prosecutorial discretion, particularly Rules 5.1 and 5.3 (subject to compliance with Rules 3 and 5.4).

“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 BAT Parties shall pay a penalty of $110,000,000 (One Hundred and Ten Million Dollars) under and pursuant 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;

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

“Mandatory public health and tobacco control advocacy in a manner compliant with tobacco control legislation and regulations, and satisfactory to the Commission as mitigation to evidence of a pattern of undermining, and circumventing national tobacco control policies and regulations;

“And That 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 at least one employee with respect to obstructing the Commission by attempting to prevent execution of the search warrant and initial lack of cooperation/compliance with steps in the investigation.

“The Commission remains committed to its mandate to promote and ensure fair markets and protect consumer interests. The outcome of this investigation demonstrates that commitment and the Commission’s desire as well as will to enforce the law and hold businesses accountable; even when it takes complex, painstaking and protracted investigations.

“A distorted market redounds only to the benefit of those who engage in malfeasance, is at the expense of others, and an exploitation of consumers, while undermining a stable economy. It compromises a Constitutional and national priority of economic growth and shared prosperity.”

Mohammed Shosanya

Mr. Babatunde Irukera, Executive Vice Chairman of the Federal Competition and Consumer Protection Commission(FCCPC),says the Commission fetched over N56billion as revenue in 2023.

He stated this at a strategic media engagement organised by the Commission in Abuja,where he also said the Commission remitted N22.4 billion to the Federation Account this year.

According to him,over 90 per cent of the IGR was generated from penalties imposed on various companies and organisations for various infractions.

He disclosed that the commission has become self-funded since the beginning of 2023, as it has vacated from government annual budgetary provisions.

He spoke on the Commission’s budgets since six years ago when he assumed Office as the Executive Vice Chairman,saying the FCCPC,got one billion naira as budget from the Federal Government and generated N154 million as revenue in that year.

He said the Commission got N3.2billion, N1.3 billion from government budget in 2018 and 2019 respectively and generated N377 million as IGR in 2019.

He said that in 2020, the Commission’s budget from the Federal Government was N887 million and it generated N864 million as an IGR.

”By 2021, the government approved a budget of N1.8 billion to the Commission and the agency generated N4 billion and remitted N1.6 billion.

”As a matter of fact, what the government released from the treasury that year for the agency was N1.3 billion, so the agency gave the government more money than it got from it.

”In 2022, the government budget was N1.3 billion for the agency, the agency did not touch a single kobo of the operational or capital expense, the agency made N5.2 billion and remitted N2.6 billion.

”In 2023, our IGR is N56 billion and we remitted to the government N22.4 billion,” he added.

According to him,health development demonstrated the possibility of an Institution, where there is commitment and dedication to duty.

He said:”We believe that businesses must be held accountable and we believe in consequences.What makes the market stable is holding businesses accountable. Consequence management system is what we have adopted.

”We are not trying to close down businesses but they must know that if you snooze, you loose.You cannot distort the market and expect that there will be no consequences”

He further highlighted some of the activities of the Commission in the fight against illegal and fraudulent digital money lenders who have often swindled the consumers.

He expressed satisfaction that the fight against fraudulent money lenders is yielding fruit, adding that their activities must be regulated.

“We strongly disagree with compounding balance. I believe that the future of online lending is a better regulated ecosystem,”he said.

Mohammed Shosanya

The Social Integrity Network (SINET),has advised the Federal government to halt any further transaction on the revitalization of Ajaokuta Steel Rolling Mill which is aimed at transferring to foreigners through the back-door contrary to the national interest of protecting the heritage of the nation.

At an emergency meeting held in Kaduna on Wednesday,the group expressed worries over the poor system of governance adopted by the federal government through its relevant agencies such as the Federal Ministry of Steel Development and Ministry of Industry, Trade and Investment among agencies of the government.

They lamented that despite the presence highly intellectual personalities such as University Professors, Industrialists, members of national assembly, seasoned administrators, captains of Industries, technical and financial consultants among others, “It is unfortunate that our leaders still allow foreigners to fool the entire nation with unrealistic proposals and business plans.”

In a statement issued by its national coordinator, Ibrahim Issah, SINET recalled that the National Assembly Joint Committee on Steel Development recently passed a resolution to probe the $496million paid by the Federal Government to an Indian firm which failed to revitalize the Itakpe Iron Ore Company after three years.

The group noted that preference should be given to national companies who can run such plants, ensure employment generation, reducing imports and do away with siphoning out much needed forex and mineral resources.

He added that “the Global Infrastructure Holding Ltd., GIHL took over the National Iron Ore Mining Company, NIOMCO, Itakpe, Kogi State in 2016 and got its agreement terminated in 2019 due to non performance.

“GIHL dragged the Federal Government to court for breach of contract and it was awarded damages to the tune of $496million which had been paid”.

According to him, “We are outrightly against the way the federal government is deliberately and ignorantly selling out its national heritage without recourse to the yearnings and agitation of Nigerians especially at this crucial period when the nation is battling with economic stability among other challenges.

“Almost five decades of lost opportunity towards strengthening large scale Steel Production in Nigeria, failed attempts without proper road map. It is also on record that Russians and Ukrainians supplied already obsolete technology then in 1970s

“Another blunder was committed by handing over Ajaokuta, Itakpe mines with all the infrastructure and Delta Steel plants to Global Infrastructure Holding Limited,GHIL, India. They took over the plant and siphoned out all the resources from country and eventually country did not get any benefit.

“GIHL was never serious in running the plants and mines at Ajaokuta Steel Company Limited, Delta Steel Company and Itakpe. Later, GHIL sold its stakes in Delta Steel Company to Stallion Group under a SPV to Premium Steel & Mines Limited This acquisition was also a marvel of financial engineering by PSML to hide black money generated and siphon out of country through their other businesses.”

Comrade Issah further emphasized that, “When stallion did not get support from the former President Muhammadu Buhari-led government, they had to shutdown the PSML Warri business around 2020. Sadly, for the third time, the Federal Government is trying to bring in Indian company to loot the resources from Ajaokuta, Delta steel plants and Itakpe mines.

“Interestingly, the immediate past government had paid the sum of $496million to GIHL as compensation even despite massive public outrage, wherein, these investors are merely looking at Itakpe mines to cater their offshore companies at much cheaper rate of iron ore supplies.”

Confirming that Jindal-India has been asked to work out takeover proposal back-door without public notice knowing well that several injunctions have been in different Courts of Law, SINET warned the federal government to understand that Ajaokuta and Delta Steel Company are very old and obsolete technologies and any company claiming to run and earn profit is just misleading the nation with nefarious intentions.

“We hereby advise FG and it’s concerned Ministries to carefully dig deep into their Detailed Project Report, Elaborated Business Plan, Capital Outlay and Cash Flow Projections by involving independent agencies and champions of business here in Nigeria. We are quite sure that the so-called 5B investment from Jindal is a faux pass and outrightly exaggerated number that will put Nigeria, her assets, resources and general public in total mess again”, SINET maintained.

The National Judicial Council had commenced investigation into the several petitions filed against Osun Chief Judge.

The Council in line with its tradition had taken up its independent investigation after rejecting the report and recommendations of a similar probe by the House of Assembly as forwarded by Governor Ademola Adeleke.

A copy of the petition filed by the state judicial workers’ union was reportedly sent for response.

An official of NJC saud that there was an investigative query already issued, adding that they heard that the person in question is out of the country.

He added:”The investigation has commenced. The petition has been sent for answer. It is the response the Council is waiting for. So nobody has killed the petition as indicated in some media reports.

“NJC has its procedure. Petitions are normally reviewed without bias. The NJC had only rejected the Governor’s request. That does not invalidate the petitions which was filed by the workers and their union.”

A copy of one of the petition obtained on Wednesday listed series of allegations against the Chief Judge.

According to the petition,about N7.5million recovered from some condemned persons involved in the widely reported Ikirun Bank robbery in the state, was diverted.

The petition alleged that directive was given that the sum recovered from the convict must be paid into the account of Osun State Government but a contrary directive was also given that the money should be paid into the account of the state judiciary.

The petition also alleged that some staff of the Osun Judiciary were unilaterally suspended, without any recourse to the State Judicial Service Commission (JSC) for more than four years, while salaries and allowances of the affected staff were paid into an unauthorised special account without notifying the state government paying the salaries.

It was further alleged that even though some of the suspended staff faced several panels, including the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which exonerated them, their suspension was not lifted against known administrative principles.

The petition also said another set of staff of the Osun State Judiciary were arrested, investigated and prosecuted in 2020 over alleged stealing of office materials and that the staff were later discharged and acquitted by court but the verdict, which ordered their reinstatement and restoration of their salaries and allowances was not disobeyed.