Mohammed Shosanya
The British American Tobacco Nigeria Limited (BATN) and other affiliated companies have paid the fine of $110 million imposed on them by the Federal Competition and Consumer Protection Commission (FCCPC) for infractions of several laws in Nigeria.
Dr. Adamu Abdullahi, Acting Executive Vice Chairman (EVC) of FCCPC, confirmed this on Tuesday during a media briefing in Abuja,
He disclosed that BATN has completed the payment in two instalments, one in January and the other in March, 2024.
Last December,the Federal Competition and Consumer Protection Commission (FCCPC) had fined British American Tobacco Nigeria Limited (BATN) and other affiliated companies $110 million for “infractions” of several laws.
In a statement on Tuesday,FCCPC said the affiliated companies are British American Tobacco Marketing (Nigeria) Limited (BATMN), British American Tobacco Plc, and British American Tobacco (Holdings) Limited.
Describing the companies as BAT parties,the commission said they contravened the FCCPC Act, and the National Tobacco Control Act, among others.
Sequel to an investigation that began on August 28, 2020, the Commission said it reached a final resolution with the companies in late 2023.
Shedding light on the fine during a media briefing, Abdullahi said “The full $110 million was paid at the official exchange rate at that time through the Central Bank of Nigeria (CBN).
“The Federal Government received 40 percent of the amount, while 60 percent went to the FCCPC.”
He described the case as water tight, adding that FCCPC conducted thorough investigations on the Tobacco company.
FCCPC said it initiated the investigation based on credible intelligence, which called for a broader and deeper inquiry into the companies’ conduct.
Upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced investigatory tools, FCCPC said “the court issued an order and warrant of search and seizure.”
Abdullahi further revealed that the FCCPC is currently monitoring the activities of another major tobacco company for compliance with international conventions, the National Tobacco Control Act, and regulations, and to prevent potential anti-competitive practices.
He said: “The Commission has launched a multi-faceted campaign to combat underage tobacco use and protect vulnerable populations.
“Key initiatives in this respect include the “Don’t Burn Their Future” advocacy programme, the “Faith and Fortune” television series, and a retail shop campaign across 10 States.”
Speaking on his achievements as the Acting Executive Vice Chairman in the last seven months, he said: “In this period, we have 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.”
“To address public concerns over soaring food prices, he said “the FCCPC implemented measures to curb price gouging, promote fair competition, and protect consumers.
“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.”
Commenting on the digital money lending industry, Abdullahi maintained that the Commission has continued to advocate 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.
According to him, “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.”
