The Federal Competition and Consumer Protection Commission has imposed a hefty $110 million fine on British American Tobacco Nigeria and affiliated companies. The penalty stems from multiple breaches of the FCCP Act, the National Tobacco Control Act, and various legal regulations.
In a statement released in Abuja on Wednesday, the commission disclosed that the agreed-upon amount followed mutual discussions under the FCCPC’s Cooperation/Assistance Rules & Procedure (CARP), 2021. The FCCPC highlighted that the Cooperation/Assistance Framework provides potential benefits such as reduced monetary penalties and waivers of certain regulatory provisions.
As part of the resolution, BAT parties will be subject to compliance and monitoring by the FCCPC for 24 months to ensure adherence to appropriate behavioral and business practices. Additionally, the companies are obligated to engage in mandatory public health and tobacco control advocacy in line with relevant legislation.
The commission revealed that BAT parties, in exchange for fulfilling their obligations under the Consent Order, will see the withdrawal of pending criminal charges related to attempts to hinder the execution of a search warrant and initial lack of cooperation in the investigation.
The investigation, initiated on August 28, 2020, was prompted by credible information, leading to searches and seizures at multiple BAT parties’ locations on January 25, 2021. Substantial evidence, including forensic analysis of electronic communications, supported findings of multiple violations of the FCCPA and other enactments.
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Despite the complexity and duration of the investigation, the commission emphasized its commitment to enforcing the law and holding businesses accountable to promote fair markets and protect consumer interests.
“BAT parties shall provide written assurances to the commission under Section 153 of the FCCPA as required. In exchange for BAT parties fulfilling their obligations under the Consent Order, the commission withdraws pending criminal charges against BATN and one employee for attempting to prevent the execution of the search warrant and for initial lack of cooperation/compliance with steps in the investigation.
“The commission on August 28, 2020, opened an active investigation concerning 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.
“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.
“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,” the commission said.
(NAN)
